Legislature(2005 - 2006)CAPITOL 124
05/03/2005 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB142 | |
| HB293 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 293 | TELECONFERENCED | |
| += | SB 142 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 293-BOROUGH SALES TAX EXEMPTIONS 8:14:00 AM CO-CHAIR OLSON announced that the final order of business would be HOUSE BILL NO. 293, "An Act relating to a borough sales tax exemption for a source that is taxed by a city in that borough." 8:14:26 AM KACI SCHROEDER, Staff to Representative Bill Thomas, House Community and Regional Affairs Standing Committee, Alaska State Legislature, explained that HB 293 clears up ambiguous language in current statute. This legislation makes it clear that boroughs have the power to wholly or partially exempt cities within their boundaries. For example, if the City of Fairbanks has an 8 percent lodging tax and the borough also levies an 8 percent lodging tax, the borough has the power to exempt the City of Fairbanks in order to avoid any stacking of taxes. Therefore, the playing field is leveled and businesses aren't hurt by differing tax rates between a city within a borough. Ms. Schroeder directed attention to a chart [entitled, "SB 161 Impact"], which illustrates the problem associated with stacking taxes. 8:16:16 AM RENE BROKER, Attorney at Law, Fairbanks North Star Borough, related her understanding that in addition to Fairbanks both Ketchikan and Kodiak boroughs are already utilizing this exemption. Ms. Broker said that [the Fairbanks North Star Borough] supports this legislation because it clarifies that [the borough] is allowed to do this. This legislation makes it clear that state law doesn't force boroughs to stack taxes and double the tax burdens in the cities within the borough. Furthermore, the legislation clarifies that the legislature didn't intend to prevent boroughs from working with cities to equally levy taxes throughout the borough. Moreover, this allows boroughs that choose to do so to cooperatively meet the public policy goals of avoiding double taxation and preventing duplication of taxing jurisdictions within the borough. 8:17:40 AM CO-CHAIR OLSON, upon determining no one else wished to testify, closed public testimony. 8:17:57 AM REPRESENTATIVE NEUMAN moved to report HB 293 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered.
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