05/03/1993 02:50 PM Senate FIN

                                                                               
  HOUSE BILL NO. 133                                                           
                                                                               
       An Act amending the definition  of `value' for purposes                 
       of administration of fisheries taxes; and providing for                 
       an effective date.                                                      
                                                                               
  Co-chair  Pearce directed  that  HB 133  be  brought on  for                 
  discussion.     REPRESENTATIVE   CARL   MOSES  came   before                 
  committee.  He explained that HB  133 is similar to existing                 
  law, but it  restructures the definition of  "value" used in                 
  administering fisheries  taxes to  enhance clarity.   It  is                 
  identical  to  CSHB 448  (Res) introduced  by Representative                 
  Gail Phillips last  year, with  the exception of  clarifying                 
  language recommended  by  the Division  of  Legal  Services.                 
  There is no known opposition to the bill.                                    
                                                                               
  In  the  past, processors  and  fishermen have  disputed the                 
                                                                               
                                                                               
  definition of "value" when paying salmon enhancement and raw                 
  fisheries taxes.  The argument  is that bonuses and delivery                 
  costs are not part of the actual amount paid for fish.  This                 
  interpretation leaves an opening for processors to pay lower                 
  prices.  They make  up for the low  price by giving  bonuses                 
  for services such as delivery or handling.  HB 133 clarifies                 
  what  services  and forms  of payment  are subject  to these                 
  taxes.   The  bill would take  effect on  January 1,  1994.                  
  Representative Moses urged passage.                                          
                                                                               
  Co-chair Pearce called  for additional testimony.   None was                 
  forthcoming.  She then queried members regarding disposition                 
  of  the bill.  Senator Kerttula  MOVED that HB 133 pass from                 
  committee  with individual  recommendations.   No  objection                 
  having been  raised, HB  133 was  REPORTED OUT  of committee                 
  with a  zero fiscal  note from  the Dept.  of Revenue.   Co-                 
  chairs  Pearce  and Frank  and  Senators Jacko,  Rieger, and                 
  Sharp  signed  the   committee  report  with  a   "do  pass"                 
  recommendation.  Senators Kelly and  Kerttula had moved away                 
  from the committee table and did not sign the bill as it was                 
  circulated.