00 CS FOR HOUSE BILL NO. 264(FSH) 01 "An Act levying and collecting a fishery resource landing tax; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43 is amended by adding a new chapter to read: 05 CHAPTER 77. FISHERY RESOURCE LANDING TAX. 06  Sec. 43.77.010. LANDING TAX. A person owning a fishery resource that is 07 not subject to AS 43.75 but that is brought into the jurisdiction of, and first landed in, 08 this state is liable for and shall pay a landing tax on the value of the fishery resource. 09 The amount of the landing tax is 3.3 percent of the value of the fishery resource at the 10 place of the landing. 11  Sec. 43.77.020. FILING RETURN AND PAYMENT OF TAX. (a) A person 12 subject to the tax under this chapter shall file a return stating the value of fishery 13 resources landed in the state that are subject to the tax, the point of landing of the 14 fishery resource, and other information the department requires by regulation. 01  (b) The return shall be made on the basis of the calendar year to the 02 department at Juneau before April 1 after the close of the calendar year, and the tax 03 shall be paid with the return. 04  (c) The department may, under regulations it adopts, grant a reasonable 05 extension of time for the filing. A grant of an extension of time for filing does not 06 extend the time for payment of the tax. 07  Sec. 43.77.030. CREDIT FOR TAXES PAID OTHER STATES. The 08 department shall grant a credit, not to exceed the taxpayer's liability for the tax under 09 this chapter on a fishery resource, to a taxpayer for taxes equivalent to those imposed 10 under AS 43.75 and AS 43.76 that are paid to another state in which the fishery 11 resource was either caught or processed. 12  Sec. 43.77.040. SEPARATE ACCOUNTING. (a) The tax collected on the 13 levy of 3/10 of one percent of the value of the fishery resource under AS 43.77.010 14 shall be paid into a separate account in the general fund. The annual estimated 15 balance in the account may be appropriated by the legislature to the Alaska Seafood 16 Marketing Institute. 17  (b) The tax collected on the levy of three percent of the value of the fishery 18 resource under AS 43.77.010 shall be paid into a separate account in the general fund. 19 The annual estimated balance in the account may be appropriated by the legislature for 20 revenue sharing under AS 43.77.050 and for other public purposes. 21  Sec. 43.77.050. REVENUE SHARING. (a) Subject to appropriation by the 22 legislature and except as provided in (b) of this section, the commissioner shall pay 23 to each 24  (1) unified municipality and to each city located in the unorganized 25 borough, 50 percent of the amount of tax revenue collected from taxes levied under 26 this chapter on the fishery resource landed in the municipality and accounted for under 27 AS 43.77.040(b); 28  (2) city located within a borough, 25 percent of the amount of the tax 29 revenue collected from taxes levied under this chapter on fishery resources landed in 30 the city and accounted for under AS 43.77.040(b); and 31  (3) borough 01  (A) 50 percent of the amount of the tax revenue collected from 02 taxes levied under this chapter on fishery resources landed in the area of the 03 borough outside cities and accounted for under AS 43.77.040(b); and 04  (B) 25 percent of the amount of the tax revenue collected from 05 taxes levied under this chapter on fishery resources landed in cities located 06 within the borough and accounted for under AS 43.77.040(b). 07  (b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 08 subject to appropriation by the legislature, the commissioner shall pay to each 09  (1) city that is located in a borough incorporated after the effective date 10 of this Act, the following percentages of the tax revenue collected from taxes levied 11 under this chapter on fishery resources landed in the city and accounted for under 12 AS 43.77.040(b): 13  (A) 45 percent of the tax revenue collected during the calendar 14 year in which the borough is incorporated; 15  (B) 40 percent of the tax revenue collected during the first 16 calendar year after the calendar year in which the borough is incorporated; 17  (C) 35 percent of the tax revenue collected during the second 18 calendar year after the calendar year in which the borough is incorporated; and 19  (D) 30 percent of the tax revenue collected during the third 20 calendar year after the calendar year in which the borough is incorporated; and 21  (2) borough that is incorporated after the effective date of this Act, the 22 following percentages of the tax revenue collected from taxes levied under this chapter 23 on fishery resources landed in the cities located within the borough and accounted for 24 under AS 43.77.040(b): 25  (A) five percent of the tax revenue collected during the calendar 26 year in which the borough is incorporated; 27  (B) 10 percent of the tax revenue collected during the first 28 calendar year after the calendar year in which the borough is incorporated; 29  (C) 15 percent of the tax revenue collected during the second 30 calendar year after the calendar year in which the borough is incorporated; and 31  (D) 20 percent of the tax revenue collected during the third 01 calendar year after the calendar year in which the borough is incorporated. 02  (c) Notwithstanding the provisions of (b) of this section, a city may adopt an 03 ordinance to transfer a portion of the funds received under (b)(1) of this section to the 04 borough in which the city is located. 05  (d) To the extent that appropriations are available for the purpose, and 06 notwithstanding the requirement of AS 37.07.080(e) that approval of the office of 07 management and budget is required, an amount equal to 50 percent of the tax revenue 08 that is collected under this chapter and is not subject to division with a municipality 09 under (a) - (c) of this section shall be transmitted each fiscal year, without the approval 10 of the office of management and budget, by the department to the Department of 11 Community and Regional Affairs for disbursal to eligible municipalities under 12 AS 29.60.450. 13  Sec. 43.77.060. REGULATIONS. The department shall adopt regulations to 14 implement and interpret this chapter. 15  Sec. 43.77.200. DEFINITIONS. In this chapter, 16  (1) "fishery resource" means finfish, shellfish, and fish by-products, 17 including salmon, halibut, herring, flounder, crab, clams, cod, shrimp, and pollock; 18  (2) "landing" means the act of unloading or transferring a fishery 19 resource; 20  (3) "market value" means the highest price a willing buyer would pay 21 and a willing seller would accept for a fishery resource if both are fully informed and 22 neither is under any compulsion to buy or sell, as determined by the department under 23 regulations adopted to make value determinations; 24  (4) "process" 25  (A) means any activity that modifies the physical condition of 26 the resource, including butchering, freezing, salting, cooking, canning, 27 dehydrating, or smoking; 28  (B) does not include decapitating shrimp, or gutting, gilling, 29 sliming, washing, or icing a resource solely for the purpose of maintaining the 30 quality of the fresh resource; 31  (5) "tax" means the fishery resource landing tax levied and collected 01 under this chapter; 02  (6) "value" means the lesser of 03  (A) the market value of the processed fishery resource at the 04 time and place the resource becomes subject to the tax under this chapter; or 05  (B) the statewide average price paid in the year for unprocessed 06 fisheries resources as reported to, and the results compiled and released by, the 07 Department of Fish and Game. 08 * Sec. 2. AS 29.60.450(b) is amended to read: 09  (b) The amount transmitted each fiscal year 10  (1) under AS 43.75.137 shall be apportioned by the department to each 11 management area based on the ratio of the management area's production value to the 12 total production value for all of the management areas; the [. THE] department shall 13 allocate the amount available for each management area to each municipality in that 14 management area based on the demonstrated effects on the municipality of fisheries 15 business activities, the commercial fishing vessel days in that municipality, or both; 16  (2) under AS 43.77.050(d) shall be apportioned by the department 17 to each management area based on the ratio of the management area's fishery 18 resource landing tax production value to the total fishery resource landing tax 19 production value for all of the management areas; the department shall allocate 20 the amount available for each management area to each municipality in that 21 management area based on the demonstrated effects on the municipality of 22 fisheries activities that are subject to the tax levied under AS 43.77. 23 * Sec. 3. AS 29.60.450(f) is amended by adding a new paragraph to read: 24  (7) "fishery resource landing tax production value" has the meaning 25 given the term "value" by AS 43.77.200; 26 * Sec. 4. This Act takes effect January 1, 1994.