Legislature(2015 - 2016)HOUSE FINANCE 519

04/14/2016 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+= HB 81 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
<Bill Hearing Canceled>
+= HB 250 INDIV. INCOME TAX: CREDITS; RETURNS TELECONFERENCED
Heard & Held
+= HB 249 ELECTRONIC TAX RETURNS & MOTOR FUEL TAX TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 194 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Moved CSHB 194(FIN) Out of Committee
HOUSE BILL NO. 249                                                                                                            
                                                                                                                                
     "An Act  requiring the electronic  submission of  a tax                                                                    
     return  or  report  with  the  Department  of  Revenue;                                                                    
     relating to  the motor fuel  tax; and providing  for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
Vice-Chair Saddler MOVED to ADOPT the proposed committee                                                                        
substitute for HB 249 (FIN), Work Draft (29-GH2912\G).                                                                          
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Ms. Pierson stated that the legislation was a combination                                                                       
of the fisheries taxes, the mining taxes, and the motor                                                                         
fuel taxes. She read from the sectional analysis:                                                                               
                                                                                                                                
     Alaska Commercial Fisheries Entry Commission                                                                           
                                                                                                                                
     Section 1: Amends AS 16.43.160  (c) - Removes the $3000                                                                    
                cap for entry permits and interim use                                                                           
          permits in entry into Alaska Commercial                                                                               
                Fisheries                                                                                                       
                                                                                                                                
     Royalty Payments for Mining                                                                                            
                                                                                                                                
     Section 2: Amends AS 27.30.030  (a) -eliminates the use                                                                    
                of credits for royalty payment                                                                                  
                                                                                                                                
    Section 3: Conforming language to re-numeration in                                                                          
                section 2                                                                                                       
                                                                                                                                
     Section 4: Amends AS 27.30.40 - Removes royalty                                                                            
                payment period from credits that be carried                                                                     
                forward                                                                                                         
                                                                                                                                
     Section 5: Amends AS 27.30.050 - Removes royalty                                                                           
                payment periods from the limit of                                                                               
                applications of credits                                                                                         
                                                                                                                                
     Electronic Filing                                                                                                      
                                                                                                                              
     Section 6: Adds new  section, AS 43.05.045 - Electronic                                                                    
                filing reporting, provides a 5 year                                                                             
                exemption                                                                                                       
                                                                                                                                
    Section 7: Adds new section, AS 43.05.220 - penalty                                                                         
                for failure to comply with electronic                                                                           
                filing                                                                                                          
                                                                                                                                
                                                                                                                                
     Section 8: Amends AS 43.31.111 - changes notification                                                                      
                of death for tax filings                                                                                        
                                                                                                                                
     Motor Fuel Tax                                                                                                         
                                                                                                                                
     Section 9: Amends AS 43.40.010 (a) motor fuel tax on                                                                     
                fuel sold or transferred                                                                                      
          Motor Fuel - changes the tax rate to 16                                                                             
                cents from 8 cents                                                                                              
                Aviation Gasoline - changes the tax rate to                                                                   
                7 cents from 4.7 cents                                                                                          
          Watercraft Motor Fuel - changes the tax                                                                             
                rate to 10 cents from 5 cents                                                                                   
                Aviation Fuel - changes the tax rate to 6.5                                                                   
                from 3.2 cents                                                                                                  
                                                                                                                                
     Section 10: Amends AS 43.40.010 (b) motor fuel tax on                                                                    
                 fuel consumed by user                                                                                        
          Motor Fuel - changes the tax rate to 16                                                                             
                 cents from 8 cents                                                                                             
                 Aviation Gasoline - changes the tax rate                                                                     
                 to 7 cents from 4.7 cents                                                                                      
          Watercraft Motor Fuel - changes the tax                                                                             
                 rate to 10 cents from 5 cents                                                                                  
          Aviation Fuel - changes the tax rate to                                                                             
                 6.5 from 3.2 cents                                                                                             
                                                                                                                                
     Section 11: Amends AS 43.40.030 (a) - changes the non-                                                                     
           highway use refund to 12 cents from 6                                                                                
                 cents                                                                                                          
                                                                                                                                
     Alcohol Tax                                                                                                            
                                                                                                                                
     Section 12: Amends AS 43.60.020 (a) - changes filing                                                                       
                 requirements for filing reports                                                                                
                                                                                                                                
     Mining Tax                                                                                                             
                                                                                                                                
     Section 13: Amends AS 43.65.101 (a) - changes tax                                                                          
                 exempt for new production to 3 years from                                                                      
                 3.5 years                                                                                                      
                                                                                                                                
     Section 14: Amends AS 43.65.010 (c) - License tax                                                                          
                 rates on net income                                                                                            
                 Changes the tax rate for taxpayers, excess                                                                     
           over $100,000 to 8 cents from 7 cents                                                                                
                                                                                                                                
     Section 15: Amends AS 43.65.020 (d) - changes filing                                                                       
                 requirements for filing tax returns                                                                            
     Section 16: Amends AS 43.65.030 - Changes mining                                                                           
                 application fees and renewals to $50 and                                                                       
          changes date for filing to January 1st                                                                                
                 from May 1st of each license year                                                                              
                                                                                                                                
     Fish Business Tax                                                                                                      
                                                                                                                                
     Section 17: Amends AS 43.75.015 (a) - Fisheries                                                                          
                 Business License Tax                                                                                         
                 Salmon Canned Shore-based Business -                                                                         
                 changes tax rate to 5 percent from 4                                                                           
                 percent                                                                                                        
          Salmon Processed Shore-based Business -                                                                             
                 changes tax rate to 4 percent from 3                                                                           
                 percent                                                                                                        
                 Floating Business - changes tax rate to 6                                                                    
                 percent from 5 percent                                                                                         
                                                                                                                                
     Section 18: Amends AS 43.75.015 (b) Developing                                                                           
          Commercial Species - Fisheries Business                                                                             
                 License Tax                                                                                                  
          Developing Commercial Species Fisheries                                                                             
                 Shore-based Business- changes tax rate to                                                                    
                 4 percent from 1 percent                                                                                       
          Developing Commercial Species Fisheries                                                                             
                 Floating Business - changes tax rate to 4                                                                    
                 percent from 1 percent                                                                                         
                                                                                                                                
     Section 19: Amends AS 43.75.015 (d) Direct Marketing                                                                     
                 Developing Commercial Species - Fisheries                                                                    
                 Business License Tax                                                                                         
                 Developing Commercial Species Fisheries -                                                                    
                 changes tax rate to 4 percent from 1                                                                           
                 percent                                                                                                        
                 Commercial Fish Species - changes tax rate                                                                   
                 to 4 percent from 3 percent                                                                                    
                                                                                                                                
     Section 20: Amends 43.75.030 (b) - changes filing                                                                          
                 requirements for filing tax returns                                                                            
                                                                                                                                
    Section 21: Amends AS 43.75.130 (a) - 1 percent of                                                                          
                 tax revenue is deposited in general fund                                                                       
                 the remaining balance is divided by                                                                            
                 formula for local municipalities and                                                                           
                 governments as currently in statute                                                                            
                                                                                                                                
     Fish Resource Landing Tax                                                                                              
                                                                                                                              
     Section 22: Amends AS 43.77.010 -Fish Landing Tax                                                                        
                 Developing commercial fish species -                                                                           
                 changes tax rate to 4 percent from 1                                                                           
                 percent                                                                                                        
                 All other fish species - changes tax rate                                                                      
                 to 4 percent from 3 percent                                                                                    
                                                                                                                                
    Section 23: Amends AS 43.77.060 (a) - 1 percent of                                                                          
                 tax revenue is deposited in general fund                                                                       
                 the remaining balance is divided by                                                                            
                 formula for local municipalities and                                                                           
                 governments as currently in statute                                                                            
                                                                                                                                
     Section 24: Amends AS43.77.060 (b) - 1 percent of tax                                                                      
                 revenue is deposited in general fund the                                                                       
          remaining balance is divided by formula                                                                               
                 for local municipalities and governments                                                                       
                 as currently in statute                                                                                        
                                                                                                                                
     Uncodified Law                                                                                                         
                                                                                                                                
     Section 25: Establishes Mining Tax Working Group                                                                           
                                                                                                                                
     Section 26: Applicability for all statutes                                                                                 
                 referenced                                                                                                     
                                                                                                                                
     Section 27: Transitional provision to accommodate                                                                          
                 regulations                                                                                                    
                                                                                                                                
    Section 28: Established an immediate effective date                                                                         
                 for Section 27                                                                                                 
                                                                                                                                
     Section 29: Establishes an effective date of July 1,                                                                       
                 2016 for Section 1-26                                                                                          
                                                                                                                                
3:13:16 PM                                                                                                                    
                                                                                                                                
HB 249 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
Co-Chair Thompson reviewed the agenda for the day. He                                                                           
relayed that amendments for HB 245, HB 249, and HB 250 were                                                                     
due to his office by 5:00 pm Friday, April 15, 2016.                                                                            
                                                                                                                                
Co-Chair Thompson recessed the meeting to the Call of the                                                                       
Chair. [Secretary Note: the meeting never reconvened.]                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 249 CS WORKDRAFT vG.pdf HFIN 4/14/2016 1:30:00 PM
HB 249
HB 249 CFEC Letter.pdf HFIN 4/14/2016 1:30:00 PM
HB 249
HB 249 CFEC vessels affected by removal of fee cap.pdf HFIN 4/14/2016 1:30:00 PM
HB 249
HB 249 CFEC 16.02.19 Gho memo on fee ceiling.pdf HFIN 4/14/2016 1:30:00 PM
HB 249
HB 249 CFEC Letter.pdf HFIN 4/14/2016 1:30:00 PM
HB 249
HB 249 Sectional FIN.pdf HFIN 4/14/2016 1:30:00 PM
HB 249