Legislature(2015 - 2016)
2016-04-17 Senate Journal
Full Journal pdf2016-04-17 Senate Journal Page 2594 HB 100 CS FOR HOUSE BILL NO. 100(FIN) "An Act establishing a credit against the net income tax for an in-state processing facility that manufactures urea, ammonia, or gas-to-liquid products; relating to establishing the value of the state's royalty share of gas production based on contracts with certain in-state processing facilities that manufacture urea, ammonia, or gas-to-liquid products; and providing for an effective date" was read the second time. Senator MacKinnon, Cochair, moved and asked unanimous consent for the adoption of the Finance Senate Committee Substitute offered on page 2555. Senator Gardner objected, then withdrew her objection. There being no further objection, SENATE CS FOR CS FOR HOUSE BILL NO. 100(FIN) was adopted. Senator Bishop offered Amendment No. 1 : Page 2, line 23: Delete the second occurrence of "the" Page 2, line 24: Delete "and maintenance of" Insert "maintenance" Page 2, line 25: Delete "for, a natural gas pipeline project" Page 3, line 26: Delete "a natural gas pipeline project" Insert "the in-state processing facility" Senator Bishop moved for the adoption of Amendment No. 1. Without objection, Amendment No. 1 was adopted. Senator Wielechowski offered Amendment No. 2 : 2016-04-17 Senate Journal Page 2595 Page 1, line 1, following "Act": Insert "providing an optional exemption from municipal property taxation for certain in-state processing facilities that manufacture urea, ammonia, or gas-to-liquid products;" Page 1, following line 6: Insert a new bill section to read: "* Section 1. AS 29.45.050 is amended by adding a new subsection to read: (x) A municipality may by ordinance approved by the voters exempt or partially exempt from taxation an in-state processing facility whose primary function is the manufacturing and sale of urea, ammonia, or gas-to-liquid products to third parties in arm's length transactions. An exemption under this subsection may be of limited or unlimited duration." Page 1, line 7: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 3, line 4, following "manufacturing": Insert " from natural gas from a state lease" Page 3, lines 7 - 9: Delete "the percentage of the amount of royalty paid under AS 38.05.135 on natural gas from a state lease that is delivered in the taxable year of the taxpayer for use at the in-state processing facility equal to" Insert "the lesser of 50 percent of the tax due from the taxpayer in the taxable year or $2,000,000. A credit under this section may be apportioned based on" Page 3, lines 11 - 12: Delete "A tax credit or portion of a tax credit under this section may not be used to reduce the taxpayer's tax liability under this chapter below zero." 2016-04-17 Senate Journal Page 2596 Page 4, line 6: Delete "sec. 2" Insert "sec. 3" Page 4, line 11: Delete "Sections 1, 2, and 4" Insert "Sections 1 - 3 and 5" Page 4, line 12: Delete "Section 3" Insert "Section 4" Senator Wielechowski moved for the adoption of Amendment No. 2. Objections were heard. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: SCS CSHB 100(FIN) am S Second Reading Amendment No. 2? YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Dunleavy, Egan, Ellis, Gardner, Wielechowski Nays: Bishop, Coghill, Costello, Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Olson, Stedman, Stevens, Stoltze and so, Amendment No. 2 failed. Senator Coghill moved and asked unanimous consent that the bill be considered engrossed, advanced to third reading and placed on final passage. Without objection, it was so ordered. SENATE CS FOR CS FOR HOUSE BILL NO. 100(FIN) am S was read the third time. The question being: "Shall SENATE CS FOR CS FOR HOUSE BILL NO. 100(FIN) am S "An Act establishing a credit against the net income tax for an in-state processing facility that manufactures urea, 2016-04-17 Senate Journal Page 2597 ammonia, or gas-to-liquid products; relating to establishing the value of the state's royalty share of gas production based on contracts with certain in-state processing facilities that manufacture urea, ammonia, or gas-to-liquid products; and providing for an effective date" pass the Senate?" The roll was taken with the following result: SCS CSHB 100(FIN) am S Third Reading - Final Passage Effective Dates YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Stevens, Stoltze Nays: Egan, Ellis, Gardner, Olson, Stedman, Wielechowski and so, SENATE CS FOR CS FOR HOUSE BILL NO. 100(FIN) am S passed the Senate. Senator Coghill moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clauses. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.