Legislature(1995 - 1996)
02/07/1996 01:40 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
FEBRUARY 7, 1996
1:40 P.M.
TAPE HFC 96 - 28, Side 1, #000 - end.
TAPE HFC 96 - 28, Side 2, #000 - #102.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:40 P.M.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
George Dozier, Aid, Representative Pete Kott; Carol Carol,
Director, Administrative and Support Services, Department of
Military and Veterans' Affairs; Patrick Pourchot,
Legislative Director, Office of the Governor; Kevin Ritchie,
Alaska Municipal League, Alaska Council of Mayors, Juneau;
Scott Sterling, (Testified via teleconference), Mat-Su
Assembly Borough, Mat-Su; Jay Dulany, (Testified via
teleconference), Director, Division of Motor Vehicles,
Department of Public Safety, Anchorage; Tim Rogers,
(Testified via teleconference), Legislative Program
Coordinator for the Municipal of Anchorage, Anchorage;
Richard Woodin, (Testified via teleconference), Alaska
Airmen Association, Kenai; Bonnie Golden, (Testified via
teleconference), Kenai Peninsula Borough, Kenai; Doyle
Holmes, (Testified via teleconference), Anchorage.
SUMMARY
HB 272 An Act relating to municipal taxation of motor
vehicles; and providing for an effective date.
CS HB 272 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Public Safety and a zero fiscal note
by the Department of Community and Regional
Affairs.
HB 322 An Act authorizing grants for temporary housing
1
assistance during emergencies and disasters.
CS HB 322 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Military and Veterans
Affairs.
HOUSE BILL 322
"An Act authorizing grants for temporary housing
assistance during emergencies and disasters.
GEORGE DOZIER, AID, REPRESENTATIVE PETE KOTT advised that HB
322 had been introduced to improve the administration of
temporary housing during state declared disaster
emergencies. The legislation was introduced in the 1994
session as HB 421, and passed the House on March 14, 1994 by
40-0. It died in the Senate Rules Committee at the end of
the 1994 Legislative session.
Mr. Dozier noted that the bill would increase the efficiency
of the Division of Emergency Services by removing an
unnecessary administrative burden required by current
statutory language. Current statutes do not authorize DMVA
to make grants to individuals for providing temporary
housing during disasters. The Division of Emergency
Services is therefore required to provide housing directly
to individuals, by assigning staff to contact housing
providers, arrange for leases, renew lease arrangements
periodically as needed, and generally act as an intermediary
between the lessor and the persons using the temporary
housing. He continued, that task is administratively
burdensome and increases the cost of administering the
temporary housing program.
Mr. Dozier continued, federal disasters allow granting of
funds direct to individuals for them to make their own
temporary housing arrangements. Temporary housing in
federal disasters is paid 100% by the Federal Emergency
Management Agency (FEMA).
To adopt language to authorize the State to grant funds for
temporary housing in state disasters would reduce
administrative costs, remove liability for the State as a
lessor, and reduce government involvement in personal
issues. By making an immediate temporary housing grant
award payment to eligible applicants, would allow each
family in a State disaster to secure housing which best fits
their housing needs.
Mr. Dozier summarized that two State disasters have occurred
2
recently which have required the provision of temporary
housing; the Kodiak storm disaster of November, 1991, and
the Tenakee fire disaster of July, 1993.
CAROL CAROL, DIRECTOR, ADMINISTRATIVE AND SUPPORT SERVICES,
DEPARTMENT OF MILITARY & VETERANS AFFAIRS, testified in
support of HB 322, noting that it would make operations more
smooth for the Department. She requested a change be made
to Page 1, Line 14, deleting "or" and adding the language
"or any other source". Line 14 would then read: "Agency,
under private insurance or any other source; as a condition
of accepting housing". She noted that addition of that
language would allow the Department to apply any sources of
help which a victim could need.
Representative Brown asked if the new language would include
relatives, friends and neighbors. Ms. Carol explained it
would and that it would also include the Red Cross. The
Department would interview the individual to access the
needs. The individual would be reimbursed if they were
renting a home temporarily, but if they were staying with
family, the Department would not reimburse them.
Co-Chair Foster MOVED the conceptual amendment (Amendment
was adopted.
Ms. Carol agreed with Co-Chair Hanley that the Federal
Emergency Management Agency (FEMA) would make direct grants.
This legislation would cover those persons who do not
qualify for grants under federal law.
Co-Chair Hanley asked the amount the legislation would
increase State spending. Ms. Carol thought that it would
reduce costs of disasters. At the present time if there
were a disaster, the State would provide temporary housing,
acting as the rental agent. She reiterated that the
legislation would create less cost to the State. Co-Chair
Hanley clarified, the legislation would increase the
availability and ease in which people get housing following
a disaster, while reducing the amount of money that the
State would have to spend.
Representative Therriault questioned how the administrative
function would be paid for. Ms. Carol replied, that the
funding would "kick in" when there was a disaster and would
be used by the Department to hire temporary employees to
address needs resulting from the disaster. Co-Chair Hanley
reminded Committee members that some of those costs would be
reimbursed by the federal government.
Ms. Carol responded to Representative Kelly's question,
3
noting that grants would be distributed following an
interview with the person suffering the loss, inquire if
that party has private insurance, provide a market analysis
of the area rental fees, and then allow them a grant to
cover housing needs for three months. She emphasized that
there is a cap to the amount granted. The program is
available to all victims without homes during disasters, not
just veterans. The Division of Emergency Services is
located within the Department of Military and Veterans
Affairs.
Representative Kohring questioned the objection indicated
previously by the Senate Rules Committee. Ms. Carol
understood that in the 1994 Legislation, a limit had been
placed on the amount of money available for temporary
housing. At that time, the Department decided that the
legislation could not work that way. The Department then
considered time not money to be the determining factor,
explaining that it would be unfair to have one statewide
limit placed on temporary housing.
Representative Navarre MOVED to report CS HB 322 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
CS HB 322 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Department of Military and Veterans Affairs.
HOUSE BILL 272
"An Act relating to municipal taxation of motor
vehicles; and providing for an effective date."
Co-Chair Hanley explained that HB 272 would allow
municipalities that impose a motor vehicle registration tax
to increase or decrease the schedule currently set in
statute. Currently, there is no provision to change or
update the fee schedule. The change would relieve the
Legislature of the burden of adjusting rates by legislation.
He continued, a municipality electing to change its rates
would be required to pass an ordinance in support of the
change, and provide written notice of the change to the
Department of Public Safety (DPS) at least one year before
it would take place. The opportunity for change would be
available once every two years.
Co-Chair Hanley pointed out that the municipality would pay
the one time programming cost for the change incurred by the
Department. The Department would collect 8% of the gross as
4
a collection fee; a rate increase would result in a larger
base for collection.
Co-Chair Hanley emphasized that HB 272 would put the
responsibility for change where it belongs, with the
municipality. Each municipality should be able to choose
reasonable tax rates suited to its needs and situation. The
local ordinance provision and the democratic process would
sufficiently protect the public from unreasonable tax rates.
SCOTT STERLING, (TESTIFIED VIA TELECONFERENCE), MAT-SU
ASSEMBLY BOROUGH, MAT-SU, testified in support of the
legislation. He noted that HB 272 would provide a good tool
for the municipalities to reform taxes at a local level. He
pointed out that roads, transportation and vehicles impose
major costs both individually and legislatively. He urged
Committee members to give favorable consideration to the
legislation.
Representative Martin mentioned that he was a strong
advocate of local government having the freedom to raise
taxes. He thought that the municipalities should be
responsible for the tax collection. Co-Chair Hanley
explained that would not be an incentive to the State to
increase taxes; the municipality would determine the tax
level. The fees are set in statute at 8% which is
determined by the Legislature. Representative Navarre
pointed out that the fees had been raised from 5% to 8% in
order to reflect the true costs of administering the
program. He informed members that for the municipalities to
administer the program would cost 30%.
JAY DULANY, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY,
testified in support of the legislation and offered to
answer any questions of the Committee.
PATRICK POURCHOT, LEGISLATIVE DIRECTOR, OFFICE OF THE
GOVERNOR, clarified the Knowles Administration support of
the proposed legislation. He emphasized the importance of
the fiscal note. Mr. Pourchot stated that the Governor has
encouraged municipalities to raise revenues on their own in
order to pay for more services. The Governor has agreed
that the legislation would be the most efficient way to
provide an enhanced revenue source.
TIM ROGERS, (TESTIFIED VIA TELECONFERENCE), LEGISLATIVE
PROGRAM COORDINATOR, MUNICIPALITY OF ANCHORAGE, ANCHORAGE,
echoed the municipalities support for HB 272. He noted that
this legislation has been a municipality priority for the
past couple years. Currently, the cost of road maintenance
for the municipality is primarily covered by property taxes.
5
The municipality believes if they can adjust the automobile
tax, some of the burden will be shifted from the property
owner to the user.
Mr. Rogers commented that Anchorage has a serious "junk" and
abandoned vehicle problem which costs the municipality $100
thousand dollars a year to control. He stated that the
proposed legislation would provide the municipalities a more
effective tool to address that concern.
Representative Martin asked how the legislation would effect
the tax cap and if that decision would be presented to the
voters. Mr. Rogers thought that shift would stay within the
tax cap; instead, there would be a shift to the tax burden.
The changes would not require support of the voters but
rather approval of the Assembly.
RICHARD WOODIN, (TESTIFIED VIA TELECONFERENCE), ALASKA
AIRMEN ASSOCIATION, KENAI, spoke in support of the
legislation which would provide a means to reduce personal
property taxes inclusive of boats and airplanes. He
remarked that solution would be "more equitable".
Representative Navarre pointed out that a municipality would
be precluded from implementing the taxes until 1998. Co-
Chair Hanley advised current language in the bill would
provide the Department time to make the necessary changes
for the smooth operation of fee schedules.
BONNIE GOLDEN, (TESTIFIED VIA TELECONFERENCE), KENAI
PENINSULA BOROUGH, KENAI, noted that the Kenai Peninsula
Borough Assembly and administration support HB 272. She
advised that the bill would amend the Alaska Statutes by
adding a new subsection to A.S. 28.10.431. If amended, the
Statutes would provide municipalities the option of revising
the tax schedule as it applies to motor vehicle taxation
within their jurisdiction. Revisions could not be made more
that once every two years. [Copy of testimony on file].
KEVIN RITCHIE, ALASKA MUNICIPAL LEAGUE, ALASKA CONFERENCE OF
MAYORS, JUNEAU, voiced support of the proposed legislation
noting that it was a high priority for both groups he
represented. He offered to answer questions of Committee
members.
Representative Martin asked why the people of the
municipality were not given the opportunity to discuss the
impact of the new taxes. Mr. Ritchie stated that any change
would be made by "ordinance". The ordinance process makes
it difficult to pass a tax which would require receiving a
community consensus on how to best allocate the burden.
Strict allocation of revenue is not usually done on the
6
municipal level, although the intent is honored in almost
all cases.
In response to Representative Martin's comment,
Representative Navarre clarified that fees were raised to
reflect the Department's true costs of administering the
program. The service provides a "win/win" situation for all
parties involved and has been negotiated between the
Department and the municipalities for the fair costs of
running the program. Representative Martin argued that it
would be a win/win situation for everyone except the
taxpayer. Representative Navarre stressed that the
Department should set the fee by regulation.
Co-Chair Hanley pointed out the program would be optional.
The language of the legislation would provide that
flexibility if desired by the municipality.
(Tape Change, HFC 96-28, Side 2).
DOYLE HOLMES, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE,
testified in support of passage of HB 272. He remarked that
it would result in increased revenue to the State. Mr.
Holmes noted that the flat tax passed last year, allowed the
municipality to make that tax a portion of their revenue
source. With passage of the legislation, the Assembly would
then be able to implement the flat tax on automobiles which
would also increase State revenues.
Representative Navarre MOVED that work draft, #9-LS0841\F,
Ford, 1/26/96, be the version before the Committee. There
being NO OBJECTION, it was adopted.
Representative Navarre MOVED to report CS HB 272 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 272 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Public Safety and a zero fiscal note by the
Department of Community and Regional Affairs.
ADJOURNMENT
The meeting adjourned at 2:25 P.M.
HOUSE FINANCE COMMITTEE
FEBRUARY 7, 1996
1:40 P.M.
7
TAPE HFC 96 - 28, Side 1, #000 - end.
TAPE HFC 96 - 28, Side 2, #000 - #102.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:40 P.M.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
George Dozier, Aid, Representative Pete Kott; Carol Carol,
Director, Administrative and Support Services, Department of
Military and Veterans' Affairs; Patrick Pourchot,
Legislative Director, Office of the Governor; Kevin Ritchie,
Alaska Municipal League, Alaska Council of Mayors, Juneau;
Scott Sterling, (Testified via teleconference), Mat-Su
Assembly Borough, Mat-Su; Jay Dulany, (Testified via
teleconference), Director, Division of Motor Vehicles,
Department of Public Safety, Anchorage; Tim Rogers,
(Testified via teleconference), Legislative Program
Coordinator for the Municipal of Anchorage, Anchorage;
Richard Woodin, (Testified via teleconference), Alaska
Airmen Association, Kenai; Bonnie Golden, (Testified via
teleconference), Kenai Peninsula Borough, Kenai; Doyle
Holmes, (Testified via teleconference), Anchorage.
SUMMARY
HB 272 An Act relating to municipal taxation of motor
vehicles; and providing for an effective date.
CS HB 272 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Public Safety and a zero fiscal note
by the Department of Community and Regional
Affairs.
HB 322 An Act authorizing grants for temporary housing
assistance during emergencies and disasters.
CS HB 322 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Military and Veterans
8
Affairs.
HOUSE BILL 322
"An Act authorizing grants for temporary housing
assistance during emergencies and disasters.
GEORGE DOZIER, AID, REPRESENTATIVE PETE KOTT advised that HB
322 had been introduced to improve the administration of
temporary housing during state declared disaster
emergencies. The legislation was introduced in the 1994
session as HB 421, and passed the House on March 14, 1994 by
40-0. It died in the Senate Rules Committee at the end of
the 1994 Legislative session.
Mr. Dozier noted that the bill would increase the efficiency
of the Division of Emergency Services by removing an
unnecessary administrative burden required by current
statutory language. Current statutes do not authorize DMVA
to make grants to individuals for providing temporary
housing during disasters. The Division of Emergency
Services is therefore required to provide housing directly
to individuals, by assigning staff to contact housing
providers, arrange for leases, renew lease arrangements
periodically as needed, and generally act as an intermediary
between the lessor and the persons using the temporary
housing. He continued, that task is administratively
burdensome and increases the cost of administering the
temporary housing program.
Mr. Dozier continued, federal disasters allow granting of
funds direct to individuals for them to make their own
temporary housing arrangements. Temporary housing in
federal disasters is paid 100% by the Federal Emergency
Management Agency (FEMA).
To adopt language to authorize the State to grant funds for
temporary housing in state disasters would reduce
administrative costs, remove liability for the State as a
lessor, and reduce government involvement in personal
issues. By making an immediate temporary housing grant
award payment to eligible applicants, would allow each
family in a State disaster to secure housing which best fits
their housing needs.
Mr. Dozier summarized that two State disasters have occurred
recently which have required the provision of temporary
housing; the Kodiak storm disaster of November, 1991, and
the Tenakee fire disaster of July, 1993.
CAROL CAROL, DIRECTOR, ADMINISTRATIVE AND SUPPORT SERVICES,
9
DEPARTMENT OF MILITARY & VETERANS AFFAIRS, testified in
support of HB 322, noting that it would make operations more
smooth for the Department. She requested a change be made
to Page 1, Line 14, deleting "or" and adding the language
"or any other source". Line 14 would then read: "Agency,
under private insurance or any other source; as a condition
of accepting housing". She noted that addition of that
language would allow the Department to apply any sources of
help which a victim could need.
Representative Brown asked if the new language would include
relatives, friends and neighbors. Ms. Carol explained it
would and that it would also include the Red Cross. The
Department would interview the individual to access the
needs. The individual would be reimbursed if they were
renting a home temporarily, but if they were staying with
family, the Department would not reimburse them.
Co-Chair Foster MOVED the conceptual amendment (Amendment
was adopted.
Ms. Carol agreed with Co-Chair Hanley that the Federal
Emergency Management Agency (FEMA) would make direct grants.
This legislation would cover those persons who do not
qualify for grants under federal law.
Co-Chair Hanley asked the amount the legislation would
increase State spending. Ms. Carol thought that it would
reduce costs of disasters. At the present time if there
were a disaster, the State would provide temporary housing,
acting as the rental agent. She reiterated that the
legislation would create less cost to the State. Co-Chair
Hanley clarified, the legislation would increase the
availability and ease in which people get housing following
a disaster, while reducing the amount of money that the
State would have to spend.
Representative Therriault questioned how the administrative
function would be paid for. Ms. Carol replied, that the
funding would "kick in" when there was a disaster and would
be used by the Department to hire temporary employees to
address needs resulting from the disaster. Co-Chair Hanley
reminded Committee members that some of those costs would be
reimbursed by the federal government.
Ms. Carol responded to Representative Kelly's question,
noting that grants would be distributed following an
interview with the person suffering the loss, inquire if
that party has private insurance, provide a market analysis
of the area rental fees, and then allow them a grant to
cover housing needs for three months. She emphasized that
10
there is a cap to the amount granted. The program is
available to all victims without homes during disasters, not
just veterans. The Division of Emergency Services is
located within the Department of Military and Veterans
Affairs.
Representative Kohring questioned the objection indicated
previously by the Senate Rules Committee. Ms. Carol
understood that in the 1994 Legislation, a limit had been
placed on the amount of money available for temporary
housing. At that time, the Department decided that the
legislation could not work that way. The Department then
considered time not money to be the determining factor,
explaining that it would be unfair to have one statewide
limit placed on temporary housing.
Representative Navarre MOVED to report CS HB 322 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
CS HB 322 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Department of Military and Veterans Affairs.
HOUSE BILL 272
"An Act relating to municipal taxation of motor
vehicles; and providing for an effective date."
Co-Chair Hanley explained that HB 272 would allow
municipalities that impose a motor vehicle registration tax
to increase or decrease the schedule currently set in
statute. Currently, there is no provision to change or
update the fee schedule. The change would relieve the
Legislature of the burden of adjusting rates by legislation.
He continued, a municipality electing to change its rates
would be required to pass an ordinance in support of the
change, and provide written notice of the change to the
Department of Public Safety (DPS) at least one year before
it would take place. The opportunity for change would be
available once every two years.
Co-Chair Hanley pointed out that the municipality would pay
the one time programming cost for the change incurred by the
Department. The Department would collect 8% of the gross as
a collection fee; a rate increase would result in a larger
base for collection.
Co-Chair Hanley emphasized that HB 272 would put the
responsibility for change where it belongs, with the
11
municipality. Each municipality should be able to choose
reasonable tax rates suited to its needs and situation. The
local ordinance provision and the democratic process would
sufficiently protect the public from unreasonable tax rates.
SCOTT STERLING, (TESTIFIED VIA TELECONFERENCE), MAT-SU
ASSEMBLY BOROUGH, MAT-SU, testified in support of the
legislation. He noted that HB 272 would provide a good tool
for the municipalities to reform taxes at a local level. He
pointed out that roads, transportation and vehicles impose
major costs both individually and legislatively. He urged
Committee members to give favorable consideration to the
legislation.
Representative Martin mentioned that he was a strong
advocate of local government having the freedom to raise
taxes. He thought that the municipalities should be
responsible for the tax collection. Co-Chair Hanley
explained that would not be an incentive to the State to
increase taxes; the municipality would determine the tax
level. The fees are set in statute at 8% which is
determined by the Legislature. Representative Navarre
pointed out that the fees had been raised from 5% to 8% in
order to reflect the true costs of administering the
program. He informed members that for the municipalities to
administer the program would cost 30%.
JAY DULANY, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY,
testified in support of the legislation and offered to
answer any questions of the Committee.
PATRICK POURCHOT, LEGISLATIVE DIRECTOR, OFFICE OF THE
GOVERNOR, clarified the Knowles Administration support of
the proposed legislation. He emphasized the importance of
the fiscal note. Mr. Pourchot stated that the Governor has
encouraged municipalities to raise revenues on their own in
order to pay for more services. The Governor has agreed
that the legislation would be the most efficient way to
provide an enhanced revenue source.
TIM ROGERS, (TESTIFIED VIA TELECONFERENCE), LEGISLATIVE
PROGRAM COORDINATOR, MUNICIPALITY OF ANCHORAGE, ANCHORAGE,
echoed the municipalities support for HB 272. He noted that
this legislation has been a municipality priority for the
past couple years. Currently, the cost of road maintenance
for the municipality is primarily covered by property taxes.
The municipality believes if they can adjust the automobile
tax, some of the burden will be shifted from the property
owner to the user.
Mr. Rogers commented that Anchorage has a serious "junk" and
12
abandoned vehicle problem which costs the municipality $100
thousand dollars a year to control. He stated that the
proposed legislation would provide the municipalities a more
effective tool to address that concern.
Representative Martin asked how the legislation would effect
the tax cap and if that decision would be presented to the
voters. Mr. Rogers thought that shift would stay within the
tax cap; instead, there would be a shift to the tax burden.
The changes would not require support of the voters but
rather approval of the Assembly.
RICHARD WOODIN, (TESTIFIED VIA TELECONFERENCE), ALASKA
AIRMEN ASSOCIATION, KENAI, spoke in support of the
legislation which would provide a means to reduce personal
property taxes inclusive of boats and airplanes. He
remarked that solution would be "more equitable".
Representative Navarre pointed out that a municipality would
be precluded from implementing the taxes until 1998. Co-
Chair Hanley advised current language in the bill would
provide the Department time to make the necessary changes
for the smooth operation of fee schedules.
BONNIE GOLDEN, (TESTIFIED VIA TELECONFERENCE), KENAI
PENINSULA BOROUGH, KENAI, noted that the Kenai Peninsula
Borough Assembly and administration support HB 272. She
advised that the bill would amend the Alaska Statutes by
adding a new subsection to A.S. 28.10.431. If amended, the
Statutes would provide municipalities the option of revising
the tax schedule as it applies to motor vehicle taxation
within their jurisdiction. Revisions could not be made more
that once every two years. [Copy of testimony on file].
KEVIN RITCHIE, ALASKA MUNICIPAL LEAGUE, ALASKA CONFERENCE OF
MAYORS, JUNEAU, voiced support of the proposed legislation
noting that it was a high priority for both groups he
represented. He offered to answer questions of Committee
members.
Representative Martin asked why the people of the
municipality were not given the opportunity to discuss the
impact of the new taxes. Mr. Ritchie stated that any change
would be made by "ordinance". The ordinance process makes
it difficult to pass a tax which would require receiving a
community consensus on how to best allocate the burden.
Strict allocation of revenue is not usually done on the
municipal level, although the intent is honored in almost
all cases.
In response to Representative Martin's comment,
Representative Navarre clarified that fees were raised to
13
reflect the Department's true costs of administering the
program. The service provides a "win/win" situation for all
parties involved and has been negotiated between the
Department and the municipalities for the fair costs of
running the program. Representative Martin argued that it
would be a win/win situation for everyone except the
taxpayer. Representative Navarre stressed that the
Department should set the fee by regulation.
Co-Chair Hanley pointed out the program would be optional.
The language of the legislation would provide that
flexibility if desired by the municipality.
(Tape Change, HFC 96-28, Side 2).
DOYLE HOLMES, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE,
testified in support of passage of HB 272. He remarked that
it would result in increased revenue to the State. Mr.
Holmes noted that the flat tax passed last year, allowed the
municipality to make that tax a portion of their revenue
source. With passage of the legislation, the Assembly would
then be able to implement the flat tax on automobiles which
would also increase State revenues.
Representative Navarre MOVED that work draft, #9-LS0841\F,
Ford, 1/26/96, be the version before the Committee. There
being NO OBJECTION, it was adopted.
Representative Navarre MOVED to report CS HB 272 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 272 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Public Safety and a zero fiscal note by the
Department of Community and Regional Affairs.
ADJOURNMENT
The meeting adjourned at 2:25 P.M.
14
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