Legislature(1997 - 1998)
02/24/1997 05:00 PM House FSH
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 23 - SALE OF LTD ENTRY PERMITS BY IRS Number 1480 CHAIRMAN AUSTERMAN announced the next order of business would be HJR 23, "Relating to the seizure and sale of Alaska commercial fishing entry permits by the United States Internal Revenue Service." REPRESENTATIVE BILL HUDSON stated that he introduced HJR 23 after talking to members of the CFEC and others in the fishing industry. He stated that HJR 23 requests that the Alaska Congressional Delegation use any means available to assure that the IRS will collect past dues from income generated from the sale of fish and voluntary sale of limited entry permits. He stated that HJR 23 is to ensure that the IRS complies with Federal Law to avoid inflicting economic hardship on the tax payers and to protect fishing privileges and the right of Alaska fishermen to work. HJR 23 compliments Governor Knowles effort of appeal to the congressional delegation to bring the pertinent members of the IRS to work together with us. He stated that the CFEC had good cooperation with some members of the IRS and now without the cooperation it seems that economic harm could be the result to the permit regime. He stated that the state of Alaska has established the limited entry permits as a means to manage the fisheries from over-harvesting and over-entry. He stated that for the IRS to sell a permit worth $30,000 for $5,000, with threats to seize an additional seven entry permits in the Dillingham area, is not right. He stated that it does appear that the IRS' actions are calculated. He stated that he has no intention to relieve any taxpayer of the taxes that they owe. He stated that he would urge the committee to adopt HJR 23 so Congress could take some action. Number 1726 REPRESENTATIVE SCOTT OGAN stated that he agreed that people should not have their livelihood taken away and it violates the spirit of the U.S. Constitution. He stated that he would support HJR 23. Number 1763 JERRY MCCUNE, President, United Fishermen of Alaska, stated that United Fishermen of Alaska support HJR 23, to keep the permit system intact. He stated that the IRS wants to get a permit so they can go after other permits. He stated that they will end up selling a $150,000 permit for a $10,000 tax obligation. He stated that every fishermen he has talked to across the state supports HJR 23. Number 1816 BERNICE HEYANO, Bristol Bay Economic Development Corporation Permit Brokerage, testified via teleconference from Dillingham, that this is not a program that hands out money to individuals who owe back taxes, it is a loan program where individuals have to have a permit in order to get the loan. She stated that rural individuals are not able to get commercial loans to pay their back taxes because they lack collateral. She stated that the loan program has benefitted Bristol Bay in numerous ways by helping people if they can't pay their taxes. JERRY LIBOFF, manager, Native Village Corporation, testified via teleconference from Dillingham, that he is a tax practitioner and a commercial fisherman. He stated that he is in favor of HJR 23 and HB 123. Both of these will be positive tools toward getting the IRS problems worked out so the permits will remain in the villages. He stated that he has helped 100 people in Bristol Bay to save their permits from loss and helped 10 people obtain the tax obligation loan funds to get the IRS off their back. Number 1963 HJALMAR OLSON, fisherman, testified via teleconference from Dillingham, in support of HJR 23 and HB 123. Number 2000 CHERI SHAW, Executive Director, Cordova District Fishermen United, testified via teleconference from Cordova, in support of HJR 23 and HB 123. She stated that since the Tax Obligation Loan Program came into being it has been successful in enabling commercial fishermen to pay tax obligations. She stated that extending this program could only benefit the state and the commercial fishing industry. She stated that the CFEC will be able to continue in their efforts to bring commercial fishermen in compliance with their federal tax obligation. She stated her husband was a recipient of the Federal Tax Obligation Loan Program and has been a fishermen representative at the Alaska Symposium with the IRS. She stated that she was appalled that the IRS had tried to seize and sell two permits prior to the Christmas holiday. She stated that the symposium discussed the effort to avoid such drastic measures and to allow the CFEC to intervene to try and rectify the problem by suggesting solutions. She stated that it was reprehensible that the IRS could turn its back on the agreements that were made. Number 2112 JEFF STEPHENS, United Fishermen Marketing Association, testified via teleconference from Kodiak, in support of HJR 23 and HB 123. He stated that it is important to reaffirm Alaska's intention to work with the IRS in a positive manner to help collect past taxes while at the same time allowing commercial harvesters to continue their commercial endeavors so they can continue in the commercial enterprize. Number 2207 MELANIE GUNDERSEN, Peninsular Marketing Association, testified via teleconference from Sand Point, in support of HJR 23 and HB 123. She stated that it would be good if Halibut Individual Fish Quotas (IFQ) could be protected from seizure from the IRS. Number 2250 REPRESENTATIVE GENE KUBINA made a motion to move HJR 23, with individual recommendations and zero fiscal notes. Number 2259 CHAIRMAN AUSTERMAN asked if there was an objection, hearing none HJR 23 was moved out of the House Special Committee on Fisheries.
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