2016-01-19                     Senate Journal                      Page 1603
SB 137                                                                                                                        
SENATE BILL NO. 137 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1604
          "An Act requiring the electronic filing of a tax return                                                               
          or report with the Department of Revenue;                                                                             
          establishing a civil penalty for failure to                                                                           
          electronically file a return or report; relating to                                                                   
          exemptions from the mining license tax; relating to                                                                   
          the mining license tax rate; relating to mining license                                                               
          application, renewal, and fees; and providing for an                                                                  
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the Resources and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to exemptions from the                                                          
mining license tax; relating to the mining license tax rate; and relating                                                       
to mining license application, renewal, and fees.                                                                               
                                                                                                                                
The bill would increase the mining license tax rate from seven percent                                                          
to nine percent for a portion of net income in excess of $100,000. The                                                          
new tax rate would apply the first taxable year (which may be a fiscal                                                          
year or a calendar year) beginning after the effective date of the bill.                                                        
This legislation is expected to generate additional revenue of                                                                  
approximately $6,000,000 annually.                                                                                              
                                                                                                                                
The bill would also repeal the exemption from paying the mining                                                                 
license tax that currently applies to operations for three and one-half                                                         
years after production begins. References to the exemption in related                                                           
statutes also would be repealed. The bill would provide for the                                                                 
exemption to continue to apply to mining operations if production                                                               
begins before July 1, 2016.                                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

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To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request. The bill would                                                            
also establish an application fee of $50 for a mining license                                                                   
application and for each annual renewal.                                                                                        
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor