03/18/2009 01:00 PM House JUDICIARY

HR 7 - URGE REPEAL OF FEDERAL ESTATE/GIFT TAX                                                                                 
                                                                                                                                
1:30:48 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced  that the next order of  business would be                                                               
HOUSE RESOLUTION NO. 7, Requesting  the United States Congress to                                                               
permanently repeal the federal unified gift and estate tax.                                                                     
                                                                                                                                
1:31:00 PM                                                                                                                    
                                                                                                                                
CRYSTAL KOENEMAN,  Staff, Representative Anna  Fairclough, Alaska                                                               
State   Legislature,  speaking   on   behalf  of   Representative                                                               
Fairclough,  sponsor,  explained  that  HR 7  urges  Congress  to                                                               
repeal  the federal  estate tax.    The Economic  Growth and  Tax                                                               
Relief  Reconciliation Act  of 2001  made significant  changes to                                                               
the Internal  Revenue Service's  (IRS) Revenue  Code.   She noted                                                               
that between  2002 and  2009 federal  estate taxes  and exemption                                                               
amounts have  been gradually reduced  and will be  fully repealed                                                               
in 2010.  However, in 2011 they will be re-implemented.                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG noted that  members' packets now include                                                               
information regarding  the amount  of Alaska's  estate tax.   The                                                               
handout  relates that  in 2005  the state  estate tax  brought in                                                               
nearly $2.5  million and is phasing  down to zero in  fiscal year                                                               
2008.                                                                                                                           
                                                                                                                                
1:33:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to report  HR 7 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being  no objection,  HR 7  was reported  from the                                                               
House Judiciary Standing Committee.