03/30/1993 08:40 AM House FIN

  HB 179    An  Act  relating  to  motor  vehicles and  mobile                 
            homes; and providing for an effective date.                        
                                                                               
                                1                                              
                                                                               
                                                                               
            HB   179  was  held   in  Committee   for  further                 
  discussion.                                                                  
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  REPRESENTATIVE BRIAN PORTER testified in  support of HB 179.                 
  He stated that  under current law, municipalities  are given                 
  the option of  participating in  a registration tax  program                 
  administered by the Division of  Motor Vehicles, or electing                 
  to levy  local use  taxes.   Because of  the difficultly  in                 
  collecting  information  on  ownership  of  motor  vehicles,                 
  several Alaskan municipalities have  opted to participate in                 
  the  state administered program.  The program collects a tax                 
  based on a  schedule established  in statute in  1978.   The                 
  Division  of Motor  Vehicles retains  5 percent  of the  tax                 
  collected as an  administrative fee and refunds  the balance                 
  to the municipality from which it was collected.                             
                                                                               
  GARY LEWIS,  ALASKA MUNICIPAL  LEAGUE, TAXATION  AND FINANCE                 
  COMMITTEE, ALASKA, spoke in support of the legislation.                      
                                                                               
  Representative Brown asked if the administrative costs would                 
  exceed five percent.                                                         
                                                                               
  JUANITA  HENSLEY,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES,                 
  DEPARTMENT  OF  PUBLIC  SAFETY,  noted   that  it  would  be                 
  increased to eight percent.  She added, an additional fee of                 
  $10 would be  attached to those  persons not using the  mail                 
  for  renewing  auto  registration.   Representative  Navarre                 
  stated  the  costs  to  the  Department would  exceed  eight                 
  percent.                                                                     
                                                                               
  Co-Chair  Larson provided  the Committee  with Amendment  1.                 
  [Attachment #2].  No action was  taken on the amendment.  HB
 was HELD in Committee for further discussion.