Legislature(2005 - 2006)
2005-05-07 House Journal
Full Journal pdf2005-05-07 House Journal Page 1725 SB 174 The following was read the second time: SENATE BILL NO. 174 "An Act excluding certain trucks from the definition of 'passenger vehicle' for purposes of the passenger vehicle rental tax; and providing for an effective date." with the: Journal Page FIN RPT HCS(FIN) NT 8DP 1507 FN1: (REV) 1507 Representative Coghill moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: HOUSE CS FOR SENATE BILL NO. 174(FIN) "An Act excluding certain trucks and vehicles provided by automobile dealers as replacement transportation during warranty, recall, or service contract repairs from the definition of 'passenger vehicle' for purposes of the passenger vehicle rental tax; and providing for an effective date." (HCR 18 - title change resolution) 2005-05-07 House Journal Page 1726 There being no objection, it was so ordered. Amendment No. 1 was offered by Representative Croft: Page 2, line 12, following "compensation": Delete "from the customer for providing the vehicle" Representative Croft moved and asked unanimous consent that Amendment No. 1 be adopted. There was objection. Amendment to Amendment No. 1 was offered by Representative Berkowitz: Delete "from the customer" Representative Berkowitz moved and asked unanimous consent that Amendment to Amendment No. 1 be adopted. There being no objection, it was so ordered. There being no further objection, Amendment No. 1 as amended was adopted. Amendment No. 2 was not offered. Amendment No. 3 was offered by Representative Gatto: Page 1, line 3, following "tax;" (title amendment): Insert "relating to taxes regarding certain commercial passenger vessels operating in the state;" Page 2, line 14: Delete all material and insert: "* Sec. 2. AS 43.52 is amended by adding new sections to read: Article 2. Excise Tax on Passengers Traveling Aboard a Commercial Passenger Vessel. Sec. 43.52.100. Levy of excise tax on passengers traveling aboard a commercial passenger vessel. There is imposed an 2005-05-07 House Journal Page 1727 excise tax on passengers traveling in the marine waters of the state aboard a commercial passenger vessel that provides overnight accommodations. Sec. 43.52.110. Rate of tax. The tax imposed by AS 43.52.100 - 43.52.199 is levied at a rate to be determined each calendar year by the department based on actual costs of services to commercial passenger vessels; the rate may not exceed $50 a passenger a voyage. Sec. 43.52.120. Liability for payment of tax. (a) A passenger traveling in the marine waters of the state aboard a commercial passenger vessel that provides overnight accommodations is liable for the tax imposed by AS 43.52.100 - 43.52.199. The tax (1) shall be collected by the person who provides the travel to the passenger; and (2) is due and payable to the department (A) by the person who provides the travel to the passenger, regardless of whether the person actually collects the tax from the passenger; and (B) in the manner and at the times required by the department by regulation. (b) A passenger is not liable for the tax under AS 43.52.100 - 43.52.199 if that passenger was liable for the tax within the preceding 30 days. (c) A person who provides travel for a passenger who, under (b) of this section, would not be liable for the tax under AS 43.52.100 - 43.52.199 is not required to collect and pay the tax to the department if the person reasonably believes that the passenger is not liable for the tax under (b) of this section. Sec. 43.52.130. Disposition of proceeds. (a) The proceeds from the tax imposed by AS 43.52.100 - 43.52.199 shall be deposited in a special commercial vessel passenger tax account in the general fund. The legislature may appropriate money from the account for the purposes described in (b) and (c) of this section, for state-owned port and harbor facilities, for other services to properly provide for vessel or watercraft visits, to enhance the safety and efficiency of interstate and foreign commerce, and for other lawful purposes as determined by the legislature. (b) For each sailing of a commercial passenger vessel providing overnight accommodations, the commissioner shall 2005-05-07 House Journal Page 1728 identify the first five ports of call in the state and the number of passengers on board the vessel at each port of call. Subject to appropriation by the legislature, the commissioner shall distribute to each port of call 10 percent of the tax revenue collected under AS 43.52.100 - 43.52.199 from each passenger visiting that port. If the port of call is a city located within a borough that is not unified with the borough, the commissioner shall, subject to appropriation by the legislature, distribute five percent for each passenger to the city and five percent to the borough. Each port of call receiving funds under this section shall use the funds received in a manner calculated to improve port and harbor facilities, for other services to properly provide for vessel or watercraft visits, and to enhance the safety and efficiency of interstate and foreign commerce. (c) Within the special commercial vessel passenger tax account established in (a) of this section, a regional cruise ship impact subaccount is established. The subaccount consists of 25 percent of the proceeds from the tax on travel aboard commercial passenger vessels providing overnight accommodations in the marine waters of the state. Subject to appropriation by the legislature and regulations adopted by the department, the commissioner shall distribute funds from this subaccount to municipalities or other governmental entities within the Prince William Sound region, Southeast Alaska, or any other distinctive region affected by cruise-ship-related tourism activities but not entitled to receive funds based on port-of-call visitation as allowed by (b) of this section. The commissioner shall make the distribution authorized by the subsection only if the funds are used by the recipient to provide services and infrastructure directly related to passenger vessel or watercraft visits or to enhance the safety and efficiency of interstate and foreign commerce related to vessel or watercraft activities. Sec. 43.52.140. Administration. (a) The department shall (1) administer AS 43.52.100 - 43.52.199; and (2) collect, and supervise and enforce the collection of, taxes due under AS 43.52.100 - 43.52.199 and penalties as provided in AS 43.05. (b) The department may adopt regulations to carry out the purposes of AS 43.52.100 - 43.52.199. Sec. 43.52.199. Definitions. In AS 43.52.100 - 43.52.199, 2005-05-07 House Journal Page 1729 unless the context otherwise requires, (1) "commercial passenger vessel" means a vessel that is used in the common carriage of passengers in commerce; "commercial passenger vessel" does not include a (A) vessel with an overnight accommodation capacity for fewer than 36 passengers; (B) noncommercial vessel or a vessel operated by the state, the United States, or a foreign government; or (C) vessel licensed under AS 16.05.490 and used in charter service for the recreational taking of fish and shellfish; (2) "marine waters of the state" means the marine bays, sounds, rivers, inlets, straits, passages, canals, Pacific Ocean, Gulf of Alaska, Bering Sea, and Arctic Ocean within the territorial limits of the state, and all other bodies of marine water that are wholly or partially within the state or are under the jurisdiction of the state; (3) "passenger" means a person with whom a common carrier has contracted for carriage from one place to another. * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: REGULATIONS. The Department of Revenue may proceed to adopt regulations to implement sec. 2 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of sec. 2 of this Act. * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: REVISOR'S INSTRUCTION: The revisor of statutes shall substitute "AS 43.52.010 - 43.52.099" for "this chapter" wherever "this chapter" occurs in AS 43.52.010 - 43.52.099. * Sec. 5. Sections 1 and 3 of this Act take effect immediately under AS 01.10.070(c). * Sec. 6. Except as provided in sec. 5, this Act takes effect January 1, 2006." Representative Gatto moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Rokeberg objected and rose to a point of order, stating Amendment No. 3 was not germane and cited Rule 35 of the Uniform Rules. 2005-05-07 House Journal Page 1730 The Speaker ruled that the amendment was not in order. Representative Berkowitz appealed the ruling of the Chair. Representative Gatto moved and asked unanimous consent to withdraw Amendment No. 3. There being no objection, it was so ordered. Representative Coghill moved and asked unanimous consent that HCS SB 174(FIN) am H be considered engrossed, advanced to third reading, and placed on final passage. There was objection. HCS SB 174(FIN) am H will advance to third reading on tomorrow's calendar.