00 HOUSE BILL NO. 84 01 "An Act relating to the sharing of fisheries business tax revenue with municipalities; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 29.60.450 is amended by adding a new subsection to read: 05 (g) In addition to the amounts apportioned under (b)(1) of this section, each 06 fiscal year, a city with a population of 500 or less and a borough with a population of 07 3,000 or less shall also receive a hold harmless payment that is equal to the difference 08 between the amount that the city or borough received under (b)(1) of this section and 09 the amount that the city or borough would have received under (b)(1) of this section if 10 tax revenue collected under AS 43.75 on the value of fishery resources first landed in 11 a municipality and exported from the state without being processed in the state had not 12 been available for payment to municipalities under AS 43.75.130(a) and (d). The 13 department shall pay the hold harmless payments authorized by this subsection from 14 the amount of fisheries business tax revenue transferred to the department by the 01 Department of Revenue under AS 43.75.130(h). 02  * Sec. 2. AS 43.75.130(a) is amended to read: 03 (a) Subject to appropriation by the legislature and to [EXCEPT AS 04 PROVIDED IN] (d) of this section, the commissioner shall pay 05 (1) to each unified municipality and to each city located in the 06 unorganized borough, 50 percent of the amount of tax revenue collected in the 07 municipality from taxes levied under this chapter; 08 (2) to each city located within a borough, 25 percent of the amount of 09 tax revenue collected in the city from taxes levied under this chapter; and 10 (3) to each borough 11 (A) 50 percent of the amount of tax revenue collected in the 12 area of the borough outside cities from taxes levied under this chapter; and 13 (B) 25 percent of the amount of tax revenue collected in cities 14 located within the borough from taxes levied under this chapter. 15  * Sec. 3. AS 43.75.130(d) is amended to read: 16 (d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, the 17 commissioner shall pay 18 (1) to each city that is located in a borough incorporated after June 16, 19 1987 the following percentages of the tax revenue collected in the city from taxes 20 levied under this chapter: 21 (A) 45 percent of the tax revenue [TAXES] collected during 22 the calendar year in which the borough is incorporated; 23 (B) 40 percent of the tax revenue [TAXES] collected during 24 the first calendar year after the calendar year in which the borough is 25 incorporated; 26 (C) 35 percent of the tax revenue [TAXES] collected during 27 the second calendar year after the calendar year in which the borough is 28 incorporated; and 29 (D) 30 percent of the tax revenue [TAXES] collected during 30 the third calendar year after the calendar year in which the borough is 31 incorporated; and 01 (2) to each borough that is incorporated after June 16, 1987 the 02 following percentages of the tax revenue collected in the cities located within the 03 borough from taxes levied under this chapter: 04 (A) 5 percent of the tax revenue [TAXES] collected during the 05 calendar year in which the borough is incorporated; 06 (B) 10 percent of the tax revenue [TAXES] collected during 07 the first calendar year after the calendar year in which the borough is 08 incorporated; 09 (C) 15 percent of the tax revenue [TAXES] collected during 10 the second calendar year after the calendar year in which the borough is 11 incorporated; and 12 (D) 20 percent of the tax revenue [TAXES] collected during 13 the third calendar year after the calendar year in which the borough is 14 incorporated. 15  * Sec. 4. AS 43.75.130(g) is amended to read: 16 (g) In this section, "tax revenue collected" means the revenue collected by  17 the department from taxes levied under this chapter on the value of fishery  18 resources that are either (1) processed in a municipality; or (2) first landed in a  19 municipality and exported from the state without being processed in the state;  20 "tax revenue collected" includes the amount credited against taxes under 21 AS 43.75.018. 22  * Sec. 5. AS 43.75.130 is amended by adding a new subsection to read: 23 (h) Notwithstanding (a) and (d) of this section, the amount available for 24 payment to municipalities under this section from the amount of tax revenue collected 25 by the Department of Revenue on the value of fishery resources that are first landed in 26 a municipality but not processed in the state shall be transferred by the Department of 27 Revenue to the Department of Commerce, Community, and Economic Development. 28 The amount required to hold harmless cities and boroughs under AS 29.60.450(g) 29 shall be paid, subject to appropriation, from the tax revenue transferred to the 30 Department of Commerce, Community, and Economic Development under this 31 subsection. The Department of Commerce, Community, and Economic Development 01 shall determine the amount that each municipality is entitled to receive under this 02 section from the amount of tax revenue collected on the value of fishery resources that 03 are first landed in the municipality but not processed in the state after the amount of 04 tax revenue payable to each municipality is reduced proportionately by the amount 05 necessary to make the hold harmless payments under AS 29.60.450(g). The 06 Department of Commerce, Community, and Economic Development shall pay the 07 balance of the tax revenue that remains after making the hold harmless payments 08 under AS 29.60.450(g) to the municipalities eligible to receive the tax revenue under 09 this section. 10  * Sec. 6. AS 43.75.137 is amended to read: 11 Sec. 43.75.137. Additional refund. Subject to appropriation by the  12 legislature [TO THE EXTENT THAT APPROPRIATIONS ARE AVAILABLE FOR 13 THE PURPOSE, AND NOTWITHSTANDING THE REQUIREMENT OF 14 AS 37.07.080(e) THAT APPROVAL OF THE OFFICE OF MANAGEMENT AND 15 BUDGET IS REQUIRED], an amount equal to 50 percent of the tax revenue that is 16 collected under this chapter from fisheries businesses and that is not subject to 17 division with a municipality under AS 43.75.130 shall be paid by [TRANSMITTED 18 EACH FISCAL YEAR, WITHOUT THE APPROVAL OF THE OFFICE OF 19 MANAGEMENT AND BUDGET, BY THE DEPARTMENT TO] the Department of 20 Commerce, Community, and Economic Development [FOR DISBURSAL] to eligible 21 municipalities under AS 29.60.450. 22  * Sec. 7. AS 29.60.450(g) and AS 43.75.130(h), added by secs. 1 and 5 of this Act, 23 respectively, are repealed on June 30 of the fiscal year in which each municipality in the state 24 receives at least $20,000 in state aid as state revenue sharing, safe communities revenue 25 sharing, community dividends, or a similar state grant program to be used for one or more of 26 police and related protection services, fire and emergency protection services, water and 27 sewer services, solid waste management, or other priority government services. State aid to 28 municipalities for public schools may not be considered in determining whether each 29 municipality in the state receives at least $20,000 in state aid as described in this section. The 30 commissioner of revenue and the commissioner of commerce, community, and economic 31 development shall inform the lieutenant governor and the revisor of statutes in writing of the 01 date the conditions for the repeal of AS 29.60.450(g) and AS 43.75.130(h) under this section 02 were met. 03  * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. AS 29.60.450(g), added by sec. 1 of this Act, AS 43.75.130(g), as 06 amended by sec. 4 of this Act, and AS 43.75.130(h), added by sec. 5 of this Act, apply to tax 07 revenue collected by the Department of Revenue under AS 43.75 for the 2006 tax year and 08 subsequent tax years. 09  * Sec. 9. This Act takes effect January 1, 2007.