Legislature(2005 - 2006)CAPITOL 124

05/03/2005 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 293 BOROUGH SALES TAX EXEMPTIONS TELECONFERENCED
Moved Out of Committee
+= SB 142 REGIONAL SCHOOL BD LAND OWNERSHIP TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                          May 3, 2005                                                                                           
                           8:11 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Co-Chair                                                                                             
Representative Pete Kott                                                                                                        
Representative Gabrielle LeDoux                                                                                                 
Representative Mark Neuman                                                                                                      
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bill Thomas, Co-Chair                                                                                            
Representative Sharon Cissna                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 142(L&C)                                                                                                 
"An Act relating to ownership of land by regional school boards;                                                                
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED CSSB 142(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 293                                                                                                              
"An Act relating to a borough sales tax exemption for a source                                                                  
that is taxed by a city in that borough."                                                                                       
                                                                                                                                
     - MOVED HB 293 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 142                                                                                                                  
SHORT TITLE: REGIONAL SCHOOL BD LAND OWNERSHIP                                                                                  
SPONSOR(S): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/16/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/05       (S)       L&C, FIN                                                                                               
03/31/05       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
03/31/05       (S)       Heard & Held                                                                                           
03/31/05       (S)       MINUTE(L&C)                                                                                            
04/05/05       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
04/05/05       (S)       Moved CSSB 142(L&C) Out of Committee                                                                   
04/05/05       (S)       MINUTE(L&C)                                                                                            
04/06/05       (S)       L&C     RPT     CS           4DP     1NR                                                               
                         NEW TITLE                                                                                              
04/06/05       (S)       DP: BUNDE, DAVIS, SEEKINS, STEVENS B                                                                   
04/06/05       (S)       NR: ELLIS                                                                                              
04/19/05       (S)       FIN    RPT    CS(L&C)         3DP    3NR                                                               
                         NEW TITLE                                                                                              
04/19/05       (S)       DP: WILKEN, GREEN, BUNDE                                                                               
04/19/05       (S)       NR: HOFFMAN, OLSON, DYSON                                                                              
04/19/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/19/05       (S)       Moved CSSB 142(L&C) Out of Committee                                                                   
04/19/05       (S)       MINUTE(FIN)                                                                                            
04/21/05       (S)       TRANSMITTED TO (H)                                                                                     
04/21/05       (S)       VERSION: CSSB 142(L&C)                                                                                 
04/22/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/22/05       (H)       CRA, FIN                                                                                               
04/28/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
04/28/05       (H)       Heard & Held                                                                                           
04/28/05       (H)       MINUTE(CRA)                                                                                            
05/03/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
                                                                                                                                
BILL: HB 293                                                                                                                  
SHORT TITLE: BOROUGH SALES TAX EXEMPTIONS                                                                                       
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
04/29/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/29/05       (H)       CRA, FIN                                                                                               
05/03/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KACI SCHROEDER, Staff                                                                                                           
to Representative Bill Thomas                                                                                                   
House Community and Regional Affairs Standing Committee                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 293 on behalf of the House                                                                    
Community and Regional Affairs Standing Committee, sponsor.                                                                     
                                                                                                                                
RENE BROKER, Attorney at Law                                                                                                    
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 293.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CO-CHAIR  KURT  OLSON called  the  House  Community and  Regional                                                             
Affairs  Standing  Committee  meeting  to order  at  8:11:49  AM.                                                             
Representatives Olson,  Kott, Neuman, and LeDoux  were present at                                                               
the call to order.   Representative Salmon arrived as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
SB 142-REGIONAL SCHOOL BD LAND OWNERSHIP                                                                                      
                                                                                                                                
CO-CHAIR OLSON announced  that the first order  of business would                                                               
be  CS  FOR  SENATE  BILL  NO.  142(L&C),  "An  Act  relating  to                                                               
ownership of  land by regional  school boards; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
8:12:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN related  that the rural schools  seem to be                                                               
amenable to  SB 142.   He referenced  a letter from  Kip Knudson,                                                               
Deputy Commissioner  of Aviation, Department of  Transportation &                                                               
Public Facilities,  that should  be included in  the packet.   He                                                               
also noted  that since  this legislation  references some  of the                                                               
areas around  Noatak, he spoke  with Representative  Joule, who's                                                               
comfortable  with  the  legislation  as  well.    He  noted  that                                                               
committee members should have a document stating his findings.                                                                  
                                                                                                                                
8:13:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved  to  report CSSB  142(L&C)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being no objection, it was so ordered.                                                                     
                                                                                                                                
HB 293-BOROUGH SALES TAX EXEMPTIONS                                                                                           
                                                                                                                                
8:14:00 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON announced  that the final order  of business would                                                               
be HOUSE  BILL NO. 293, "An  Act relating to a  borough sales tax                                                               
exemption for a source that is taxed by a city in that borough."                                                                
                                                                                                                                
8:14:26 AM                                                                                                                    
                                                                                                                                
KACI  SCHROEDER,  Staff  to  Representative  Bill  Thomas,  House                                                               
Community and  Regional Affairs Standing Committee,  Alaska State                                                               
Legislature, explained  that HB 293 clears  up ambiguous language                                                               
in  current  statute.    This legislation  makes  it  clear  that                                                               
boroughs  have the  power to  wholly or  partially exempt  cities                                                               
within their boundaries.   For example, if the  City of Fairbanks                                                               
has an  8 percent lodging  tax and the  borough also levies  an 8                                                               
percent  lodging tax,  the borough  has the  power to  exempt the                                                               
City  of Fairbanks  in  order  to avoid  any  stacking of  taxes.                                                               
Therefore,  the playing  field is  leveled and  businesses aren't                                                               
hurt  by differing  tax rates  between a  city within  a borough.                                                               
Ms. Schroeder  directed attention to  a chart [entitled,  "SB 161                                                               
Impact"], which illustrates the  problem associated with stacking                                                               
taxes.                                                                                                                          
                                                                                                                                
8:16:16 AM                                                                                                                    
                                                                                                                                
RENE  BROKER,  Attorney at  Law,  Fairbanks  North Star  Borough,                                                               
related  her understanding  that  in addition  to Fairbanks  both                                                               
Ketchikan  and   Kodiak  boroughs  are  already   utilizing  this                                                               
exemption.    Ms. Broker  said  that  [the Fairbanks  North  Star                                                               
Borough]  supports this  legislation  because  it clarifies  that                                                               
[the borough] is  allowed to do this.  This  legislation makes it                                                               
clear that  state law doesn't  force boroughs to stack  taxes and                                                               
double  the  tax  burdens  in  the  cities  within  the  borough.                                                               
Furthermore,  the  legislation  clarifies  that  the  legislature                                                               
didn't intend  to prevent  boroughs from  working with  cities to                                                               
equally  levy  taxes  throughout  the borough.    Moreover,  this                                                               
allows boroughs  that choose to  do so to cooperatively  meet the                                                               
public policy  goals of avoiding  double taxation  and preventing                                                               
duplication of taxing jurisdictions within the borough.                                                                         
                                                                                                                                
8:17:40 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
8:17:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  moved to  report HB  293 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Community  and Regional  Affairs Standing  Committee meeting  was                                                               
adjourned at 8:18:11 AM.                                                                                                      

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