04/14/1993 01:00 PM House JUD

  HB 211:  MUNICIPAL INVENTORY TAX EXEMPTION:EXPORTS                           
                                                                               
  Number 706                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY, PRIME SPONSOR of HB 211,                      
  explained that the bill would remove a "glitch" in the                       
  statutes regarding local business inventory taxes which                      
  prevented the transportation hub of Anchorage from becoming                  
  an international warehousing and distribution center.  She                   
  said that the bill would allow municipalities to opt to                      
  exempt goods being held for shipment out of state from                       
  inventory property taxes.                                                    
                                                                               
  REPRESENTATIVE TOOHEY noted that Alaska's proximity to Asia                  
  and the potential for opening a northeastern sea route to                    
  Europe were tremendous incentives for warehousing businesses                 
  to locate in Alaska.  House Bill 211 would allow a local                     
  government to explore opportunities for attracting                           
  warehousing and distribution businesses.  A local government                 
  would decide what tax exemptions to allow, and then create                   
  its own ordinance to govern those exemptions.                                
                                                                               
  REPRESENTATIVE TOOHEY stated that the bill had a zero fiscal                 
  note, and enjoyed the support of the Department of Community                 
  and Regional Affairs, the Alaska Municipal League, and other                 
  entities.                                                                    
                                                                               
  Number 735                                                                   
                                                                               
  MITCH GRAVO, representing the ANCHORAGE ECONOMIC DEVELOPMENT                 
  CORPORATION (AEDC), stated that his organization strongly                    
  supported HB 211.  He said that the AEDC was actively trying                 
  to attract warehousing business from large corporations to                   
  Anchorage.  House Bill 211 would make the AEDC's job much                    
  easier, he added.                                                            
                                                                               
  Number 744                                                                   
                                                                               
  REPRESENTATIVE KOTT asked if, under current law,                             
  municipalities could exempt from taxation property intended                  
  to be exported out of state.                                                 
                                                                               
  REPRESENTATIVE TOOHEY replied in the affirmative.                            
                                                                               
  REPRESENTATIVE KOTT asked what HB 211 would accomplish then.                 
                                                                               
  Number 752                                                                   
                                                                               
  REPRESENTATIVE TOOHEY responded that HB 211 would allow a                    
  municipality to make exemptions as it saw fit.                               
                                                                               
  Number 768                                                                   
                                                                               
  REPRESENTATIVE KOTT made a MOTION to MOVE HB 211 out of                      
  committee, with individual recommendations and a zero fiscal                 
  note.  There being no objection, IT WAS SO ORDERED.                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN PORTER adjourned the meeting at 3:30 p.m.