02/11/1997 01:32 PM Senate L&C

         SB  49 SERVICE OF PROCESS ON NONRES TAXPAYERS                        
                                                                              
  CHAIRMAN LEMAN  announced  SB 49  to be up for consideration.                
                                                                               
  MR. BOB BARTHOLOMEW,  Deputy Director, Income and Excise Division,           
 explained that SB 49 asks the legislature to repeal a current tax             
 bond program that's on statute that requires non-resident                     
 businesses or individuals to file a bond and fill out an affidavit            
 to secure payment of their taxes to the State.  Since that time it            
 has been determined that the program just isn't worth the 800 hours           
 and the paper the Department of Revenue staff are processing it on.           
 Alaska is the only state that still has the requirement and staff             
 at Department of Revenue can't remember having to ever go against             
 the bond or affidavit to secure a tax payment.  They have other               
 tools that they can use like securing bank accounts, etc.                     
                                                                               
 MR. BARTHOLOMEW said they are asking to be allowed to redirect the            
 800 hours into more compliance efforts that will get the State more           
 money.                                                                        
                                                                               
 Number 356                                                                    
                                                                               
  CHAIRMAN LEMAN  said he should bring up their request for the                
 redirection of funds in the Finance subcommittee for Revenue.                 
                                                                               
  SENATOR MACKIE  said he agreed with Mr. Bartholomew's testimony              
 regarding the redirection of staff time.                                      
                                                                               
  SENATOR MACKIE  moved to pass SB 49 from committee with individual           
 recommendations. There were no objections and it was so ordered.