Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/05/2016 01:30 PM LABOR & COMMERCE
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|Confirmation Hearing: Alaska Gasline Development Corporation Board of Directors|
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HB 155-FEES; WAIVERS; CREDITS; DEDUCTIONS; TAXES 1:49:30 PM CHAIR COSTELLO announced the consideration of HB 155; "An Act repealing an exploration incentive credit; amending the calculation of adjusted gross income for purposes of the tax on gambling activities aboard large passenger vessels; repealing the amount that may be deducted from the motor fuel tax to cover the expense of accounting and filing for the monthly tax return; repealing a provision allowing an investigation expense under the Alaska Small Loans Act to be in place of a fee required under the Alaska Business License Act; repealing the amount that may be deducted from the tobacco excise tax to cover the expense of accounting and filing for the monthly tax return; repealing the discount on cigarette tax stamps provided as compensation for affixing the stamps to packages; and providing for an effective date." She noted this is the second hearing on the bill and public testimony is closed. [CSHB 155(FIN) was before the committee.] 1:49:58 PM SENATOR GIESSEL moved to adopt the Senate CS for CS for HB 155, labeled 29-LS0715\P, as the working document. CHAIR COSTELLO objected for an explanation of the changes. 1:50:21 PM WESTON EILER, Staff, Senate Labor and Commerce Committee and Senator Mia Costello, Alaska State Legislature, related that the first change removes Section 5 of the original bill. This section dealt with motor fuel taxes and was removed at the request of the sponsor. Conforming changes include the renumbering of sections. The second and third changes change the effective date in Section 11 to January 1, 2017, and the effective date in Section 12 to July 1, 2016, due to collection dates of taxes. CHAIR COSTELLO removed her objection and the CS was adopted. 1:52:07 PM REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, sponsor of SB 155 said he accepts the changes. Motor fuel taxes are being addressed in another bill and the conforming date changes make the bill apply this year instead of last year when the bill was drafted. He noted the bill came about because of a report two years ago on indirect expenditure requirements. SB 155 is the start of trying to reduce excessive indirect expenditures, tax credits, and fees. 1:53:18 PM SENATOR MEYER said it is a great bill, but he noted it is not comprehensive and there are many tax credit bills in play. He asked if there are more such bills that should be considered. REPRESENTATIVE THOMPSON agreed that there are many tax credit bills. This bill targets low-hanging fruit and could start the process. He pointed out that the comprehensive report has sunset dates every two years that will require reviews. BRODIE ANDERSON, Staff, Representative Steve Thompson, Alaska State Legislature, added that Legislative Finance identified the items terminated by SB 155. SENATOR MEYER asked how many different tax credits there are. MR. ANDERSON stated that within the Department of Revenue, there are a little over 10, but less than 20, designated tax credits. The genesis of the indirect expenditure report was to go beyond the scope of the credit and look at other ways the state might have been losing revenue. The first report had over 150 pages of expenditures identified from three or four departments. 1:56:00 PM SENATOR GIESSEL moved to report the SCS for CSHB 155, labeled 29-LS0715\P, from committee with individual recommendations and attached fiscal note. CHAIR COSTELLO announced that without objection, SCS CSHB 155(L&C) is reported from the Senate Labor and Commerce Standing Committee.