02/21/2023 03:00 PM House STATE AFFAIRS

         HB   3-GOLD AND SILVER SPECIE AS LEGAL TENDER                                                                      
                                                                                                                                
3:03:40 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW  announced that the  first order of business  would be                                                               
HOUSE BILL NO.  3, "An Act relating to specie  as legal tender in                                                               
the state; and  relating to borough and city sales  and use taxes                                                               
on specie."                                                                                                                     
                                                                                                                                
3:04:14 PM                                                                                                                    
                                                                                                                                
JOSH  WALTON, Staff,  Representative  Laddie  Shaw, Alaska  State                                                               
Legislature, presented  two zero fiscal  notes for HB 3  from the                                                               
Department  of   Administration  (DOA)  and  the   Department  of                                                               
Commerce, Community & Economic Development (DCCED).                                                                             
                                                                                                                                
3:05:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY  shared  her understanding  that  the  bill                                                               
would  not remove  collectables from  the sales  tax.   She asked                                                               
where that provision was located in the bill language.                                                                          
                                                                                                                                
3:06:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KEVIN  MCCABE,  Alaska State  Legislature,  prime                                                               
sponsor  of  HB  3,  asked Representative  Story  to  repeat  the                                                               
question.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  STORY  restated the  question.    She shared  her                                                               
understanding that  the bill would  not remove  collectables from                                                               
the sales tax  and asked where that provision was  located in the                                                               
bill language.                                                                                                                  
                                                                                                                                
REPRESENTATIVE   MCCABE   indicated   that  the   collection   of                                                               
numismatics was taxable under most  codes.  He suspected that the                                                               
provision was in the city or borough code.                                                                                      
                                                                                                                                
REPRESENTATIVE STORY recalled asking  about the potential loss of                                                               
revenue to  municipalities during a  previous bill hearing.   She                                                               
asked whether the bill sponsor had a follow-up response.                                                                        
                                                                                                                                
REPRESENTATIVE  MCCABE  answered  no.   He  shared  that  he  had                                                               
contacted  several  different  communities, of  which  none  were                                                               
willing  or  able   to  provide  a  response.     He  shared  his                                                               
understanding that sales tax data  was not granularly broken down                                                               
by  category, so  it was  impossible  to decipher  the impact  to                                                               
municipalities.   He  said several  states  that had  implemented                                                               
similar legislation reported the  following fiscal notes for loss                                                               
of  local  revenue:   Arkansas,  $255,000;  Tennessee,  $117,000;                                                               
Maine, $27,750.   He noted  that after receiving two  zero fiscal                                                               
notes, he  felt comfortable moving forward  with the legislation.                                                               
He  acknowledged  that  the  bill   may  have  a  small  cost  to                                                               
municipalities with a local sales tax.                                                                                          
                                                                                                                                
3:10:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARPENTER  moved to report  HB 3 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 3 was reported  out of the                                                               
House State Affairs Standing Committee.