00 Enrolled SB 312 01 Relating to the deposit of the proceeds of the tax on gambling operations aboard certain 02 commercial passenger vessels into the general fund; providing for a reduction in the excise 03 tax to $34.50 for a passenger for each voyage on a commercial passenger vessel; describing 04 the passengers that are subject to the excise tax and liable for the payment of the tax; 05 providing for a reduction in the state excise tax imposed on a passenger traveling on a 06 commercial passenger vessel by the amount of tax on a passenger traveling on a commercial 07 passenger vessel imposed by a municipality under a law enacted before December 17, 2007; 08 authorizing appropriations from the commercial vessel passenger tax account to the first 09 seven ports of call in the state and for costs associated with commercial passenger vessels and 10 the passengers on board; limiting the use of funds appropriated from the commercial 11 passenger vessel tax account to expenditures related to port facilities, harbor infrastructure, 12 other services provided to the commercial passenger vessels and the passengers on board 01 those vessels and certain other purposes; repealing the regional cruise ship impact fund; 02 relating to the administration of the excise tax by the Department of Revenue and regulations 03 required to be adopted; requiring a report from the Department of Commerce, Community, 04 and Economic Development relating to safely and efficiently hosting passengers; defining 05 "voyage" for purposes of the excise tax; relating to municipal levies on a passenger on a 06 commercial passenger vessel; and providing for an effective date. 07 08 _______________ 09 * Section 1. AS 43.35.220 is amended to read: 10 Sec. 43.35.220. Disposition of receipts. The proceeds from the tax on 11 gambling operations aboard commercial passenger vessels in the state's marine water 12 shall be deposited in the large passenger vessel gaming and gambling tax account 13 that is established as a subaccount within the commercial vessel passenger tax 14 account (AS 43.52.230(a)) [A SPECIAL "COMMERCIAL VESSEL PASSENGER 15 TAX ACCOUNT" IN THE GENERAL FUND]. 16 * Sec. 2. AS 43.52.200 is amended to read: 17 Sec. 43.52.200. Levy of excise tax on overnight accommodations on 18 commercial passenger vessels. There is imposed an excise tax on passengers 19 traveling [TRAVEL] on commercial passenger vessels providing overnight 20 accommodations that anchor or moor on [IN] the state's marine water with the 21 intent to allow passengers to embark or disembark. 22 * Sec. 3. AS 43.52.210 is amended to read: 23 Sec. 43.52.210. Rate of tax. The tax imposed by AS 43.52.200 - 43.52.295 is 24 levied at a rate of $34.50 for [$46] a passenger for each [PER] voyage. 25 * Sec. 4. AS 43.52.220 is amended to read: 26 Sec. 43.52.220. Liability for payment of tax. A passenger subject to 27 [TRAVELING ON A COMMERCIAL PASSENGER VESSEL PROVIDING 28 OVERNIGHT ACCOMMODATIONS IN STATE MARINE WATER IS LIABLE 01 FOR] the excise tax imposed by AS 43.52.200 - 43.52.295 is liable for the payment 02 of the tax. The tax shall be collected from the passenger [AND IS DUE AND 03 PAYABLE TO THE DEPARTMENT 04 (1)] by the person who provides travel aboard a commercial vessel and 05 shall be paid to the department [FOR WHICH THE TAX IS PAYABLE; AND 06 (2)] in the manner and at the times required by the department by 07 regulation. 08 * Sec. 5. AS 43.52.230(a) is amended to read: 09 (a) The proceeds from the tax imposed under AS 43.52.200 - 43.52.295 [ON 10 TRAVEL ON COMMERCIAL PASSENGER VESSELS PROVIDING 11 OVERNIGHT ACCOMMODATIONS IN THE STATE'S MARINE WATER] shall 12 be deposited in a special "commercial vessel passenger tax account" in the general 13 fund. The legislature may appropriate money from this account for the purposes 14 described in (b) and (d) [(c)] of this section [, FOR STATE-OWNED PORT AND 15 HARBOR FACILITIES, OTHER SERVICES TO PROPERLY PROVIDE FOR 16 VESSEL OR WATERCRAFT VISITS, TO ENHANCE THE SAFETY AND 17 EFFICIENCY OF INTERSTATE AND FOREIGN COMMERCE, AND SUCH 18 OTHER LAWFUL PURPOSES AS DETERMINED BY THE LEGISLATURE]. 19 * Sec. 6. AS 43.52.230(b) is amended to read: 20 (b) For each voyage of a commercial passenger vessel [PROVIDING 21 OVERNIGHT ACCOMMODATIONS], the commissioner shall identify the first 22 seven [FIVE] ports of call in the state and the number of passengers subject to the tax 23 imposed under AS 43.52.200 - 43.52.295 on board [THE VESSEL] at each port of 24 call. Subject to annual appropriation by the legislature, the commissioner shall 25 distribute to each port of call $5 for each [PER] passenger subject to the tax imposed 26 [OF THE TAX REVENUE COLLECTED FROM THE TAX LEVIED] under 27 AS 43.52.200 - 43.52.295. If the port of call is a city located within a borough not 28 otherwise unified with the borough, the commissioner shall [, SUBJECT TO 29 APPROPRIATION BY THE LEGISLATURE,] distribute $2.50 for each [PER] 30 passenger to the city and $2.50 to the borough. A city or borough that receives a 31 payment [EACH PORT OF CALL RECEIVING FUNDS] under this subsection 01 [SECTION] shall use the funds for [IN A MANNER CALCULATED TO 02 IMPROVE] port [AND HARBOR] facilities, harbor infrastructure, and other 03 services provided to the commercial passenger vessels and the passengers on 04 board those vessels [TO PROPERLY PROVIDE FOR VESSEL OR WATERCRAFT 05 VISITS AND TO ENHANCE THE SAFETY AND EFFICIENCY OF INTERSTATE 06 AND FOREIGN COMMERCE]. 07 * Sec. 7. AS 43.52.230 is amended by adding new subsections to read: 08 (d) In addition to making an appropriation for the payments described in (b) of 09 this section, the legislature may appropriate money from the commercial vessel 10 passenger tax account to projects that (1) improve port and harbor infrastructure, (2) 11 provide services to commercial passenger vessels and the passengers on board those 12 vessels, or (3) improve the safety and efficiency of the interstate and foreign 13 commerce activities in which the vessels and the passengers on board those vessels are 14 engaged. 15 (e) After October 31, 2010, and before November 1, 2015, a home rule or 16 general law municipality that imposes and collects a tax on a passenger traveling on a 17 commercial passenger vessel under a law enacted by the municipality before 18 December 17, 2007, may not receive an appropriation under (d) of this section. 19 * Sec. 8. AS 43.52.240 is amended to read: 20 Sec. 43.52.240. Administration. [(a)] The department shall 21 (1) [ADMINISTER AS 43.52.200 - 43.52.295; AND 22 (2)] collect [, SUPERVISE,] and enforce the collection of taxes due 23 under AS 43.52.200 - 43.52.295 and penalties as provided in AS 43.05; 24 (2) [. 25 (b) THE DEPARTMENT MAY] adopt regulations necessary for the 26 administration of AS 43.52.200 - 43.52.295; and 27 (3) subject to annual appropriation, distribute the payments 28 described in AS 43.52.230(b). 29 * Sec. 9. AS 43.52 is amended by adding a new section to read: 30 Sec. 43.52.255. Tax reduction for local levies. The tax imposed on a 31 passenger by AS 43.52.200 - 43.52.295 shall be reduced by the total amount of a tax 01 on the passenger traveling on a commercial passenger vessel that is imposed and 02 collected by a home rule or general law municipality under a law enacted before 03 December 17, 2007. 04 * Sec. 10. AS 43.52 is amended to add a new section to read: 05 Sec. 43.52.260. Periodic report. The Department of Commerce, Community, 06 and Economic Development shall, every three years, prepare and submit to the 07 governor, the legislature, and the public a report that 08 (1) addresses the projected needs of communities to safely and 09 efficiently host passengers that pay taxes under AS 43.52.200 - 43.52.295; and 10 (2) summarizes the extent to which appropriations of the proceeds of 11 the tax have been used to defray the cost of meeting the needs described in (1) of this 12 section. 13 * Sec. 11. AS 43.52.295(4) is amended to read: 14 (4) "voyage" means any trip or itinerary lasting more than 72 hours on 15 the state's marine water. 16 * Sec. 12. AS 43.52.230(c) and 43.52.250 are repealed. 17 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 SUBSEQUENT LEGISLATIVE REVIEW. The Twenty-Eighth Alaska State 20 Legislature, in its Second Regular Session, shall revisit the changes made under this Act. In 21 addition to the report required under AS 43.52.260, added by sec. 10 of this Act, the 22 commissioner of revenue shall, on or before January 1, 2014, submit a written report to the 23 president of the senate and the speaker of the house of representatives regarding the effect of 24 this Act on revenue and travel to and from state ports by commercial passenger vessels during 25 the period beginning January 1, 2010, and ending November 15, 2013. The report must 26 include, for each calendar year, 27 (1) the number of passengers subject to state taxes under AS 43.52.200 - 28 43.52.295; 29 (2) tax revenue collected by the state under AS 43.52.200 - 43.52.295; 30 (3) the amount of municipal taxes imposed and collected by each home rule or 31 general law municipality that, under AS 43.52.255, added by sec. 9 of this Act, reduced the 01 tax imposed under AS 43.52.200 - 43.52.295; 02 (4) the total amount of taxes related to gambling activities collected under 03 AS 43.35.200 - 43.35.220; 04 (5) a list of ports in the state that were visited by commercial passenger 05 vessels and, for each port listed, 06 (A) the number of passengers on board those vessels; 07 (B) the amount of taxes the state collected under AS 43.52.200 - 08 43.52.295; and 09 (C) the amount of taxes the state distributed to the port of call under 10 AS 43.52.200 - 43.52.295. 11 * Sec. 14. This Act takes effect October 31, 2010.