00 CS FOR SENATE BILL NO. 135(RES) 01 "An Act relating to the sharing of tax revenue from the fisheries business tax and 02 fishery resource landing tax with municipalities; relating to municipal reports on the 03 shared tax revenue; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature that a municipality use the 08 additional revenue distributed under this Act to help maintain and improve the municipality's 09 harbor facilities, if the municipality operates harbor facilities. 10  * Sec. 2. AS 43.75.130(a) is amended to read: 11 (a) Subject to appropriation by the legislature, and except [EXCEPT] as 12 provided in (d) of this section, the commissioner shall pay 13 (1) to each unified municipality and to each city located in the 14 unorganized borough, 60 [50] percent of the amount of tax revenue collected in the 01 municipality from taxes levied under this chapter; 02 (2) to each city located within a borough, 35 [25] percent of the 03 amount of tax revenue collected in the city from taxes levied under this chapter; and 04 (3) to each borough 05 (A) 60 [50] percent of the amount of tax revenue collected in 06 the area of the borough outside cities from taxes levied under this chapter; and 07 (B) 35 [25] percent of the amount of tax revenue collected in 08 cities located within the borough from taxes levied under this chapter. 09  * Sec. 3. AS 43.75.130(a), as amended by sec. 2 of this Act, is amended to read: 10 (a) Subject to appropriation by the legislature, and except as provided in (d) of 11 this section, the commissioner shall pay 12 (1) to each unified municipality and to each city located in the 13 unorganized borough, 50 [60] percent of the amount of tax revenue collected in the 14 municipality from taxes levied under this chapter; 15 (2) to each city located within a borough, 25 [35] percent of the 16 amount of tax revenue collected in the city from taxes levied under this chapter; and 17 (3) to each borough 18 (A) 50 [60] percent of the amount of tax revenue collected in 19 the area of the borough outside cities from taxes levied under this chapter; and 20 (B) 25 [35] percent of the amount of tax revenue collected in 21 cities located within the borough from taxes levied under this chapter. 22  * Sec. 4. AS 43.75.130(d) is amended to read: 23 (d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and  24 subject to appropriation by the legislature, the commissioner shall pay 25 (1) to each city that is located in a borough incorporated after June 16, 26 1987, the following percentages of the tax revenue collected in the city from taxes 27 levied under this chapter: 28 (A) 55 [45] percent of the taxes collected during the calendar 29 year in which the borough is incorporated; 30 (B) 50 [40] percent of the taxes collected during the first 31 calendar year after the calendar year in which the borough is incorporated; 01 (C) 45 [35] percent of the taxes collected during the second 02 calendar year after the calendar year in which the borough is incorporated; and 03 (D) 40 [30] percent of the taxes collected during the third 04 calendar year after the calendar year in which the borough is incorporated; and 05 (2) to each borough that is incorporated after June 16, 1987, the 06 following percentages of the tax revenue collected in the cities located within the 07 borough from taxes levied under this chapter: 08 (A) 7.5 [5] percent of the taxes collected during the calendar 09 year in which the borough is incorporated; 10 (B) 15 [10] percent of the taxes collected during the first 11 calendar year after the calendar year in which the borough is incorporated; 12 (C) 25 [15] percent of the taxes collected during the second 13 calendar year after the calendar year in which the borough is incorporated; and 14 (D) 30 [20] percent of the taxes collected during the third 15 calendar year after the calendar year in which the borough is incorporated. 16  * Sec. 5. AS 43.75.130(d), as amended by sec. 4 of this Act, is amended to read: 17 (d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 18 subject to appropriation by the legislature, the commissioner shall pay 19 (1) to each city that is located in a borough incorporated after June 16, 20 1987, the following percentages of the tax revenue collected in the city from taxes 21 levied under this chapter: 22 (A) 45 [55] percent of the taxes collected during the calendar 23 year in which the borough is incorporated; 24 (B) 40 [50] percent of the taxes collected during the first 25 calendar year after the calendar year in which the borough is incorporated; 26 (C) 35 [45] percent of the taxes collected during the second 27 calendar year after the calendar year in which the borough is incorporated; and 28 (D) 30 [40] percent of the taxes collected during the third 29 calendar year after the calendar year in which the borough is incorporated; and 30 (2) to each borough that is incorporated after June 16, 1987, the 31 following percentages of the tax revenue collected in the cities located within the 01 borough from taxes levied under this chapter: 02 (A) five [7.5] percent of the taxes collected during the calendar 03 year in which the borough is incorporated; 04 (B) 10 [15] percent of the taxes collected during the first 05 calendar year after the calendar year in which the borough is incorporated; 06 (C) 15 [25] percent of the taxes collected during the second 07 calendar year after the calendar year in which the borough is incorporated; and 08 (D) 20 [30] percent of the taxes collected during the third 09 calendar year after the calendar year in which the borough is incorporated. 10  * Sec. 6. AS 43.75.130 is amended by adding a new subsection to read: 11 (i) A municipality that receives a payment under this section shall use 10 12 percent of the funds received under this section to support or enhance commercial 13 fishing. 14  * Sec. 7. AS 43.75.137 is amended to read: 15 Sec. 43.75.137. Additional refund. Subject to appropriation by the  16 legislature [TO THE EXTENT THAT APPROPRIATIONS ARE AVAILABLE FOR 17 THE PURPOSE, AND NOTWITHSTANDING THE REQUIREMENT OF 18 AS 37.07.080(e) THAT APPROVAL OF THE OFFICE OF MANAGEMENT AND 19 BUDGET IS REQUIRED], an amount equal to 75 [50] percent of the tax revenue that 20 is collected under this chapter from fisheries businesses and that is not subject to 21 division with a municipality under AS 43.75.130 shall be paid by [TRANSMITTED 22 EACH FISCAL YEAR, WITHOUT THE APPROVAL OF THE OFFICE OF 23 MANAGEMENT AND BUDGET, BY THE DEPARTMENT TO] the Department of 24 Commerce, Community, and Economic Development [FOR DISBURSAL] to eligible 25 municipalities under AS 29.60.450.  26  * Sec. 8. AS 43.75.137, as amended by sec. 7 of this Act, is amended to read: 27 Sec. 43.75.137. Additional refund. Subject to appropriation by the legislature, 28 an amount equal to 50 [75] percent of the tax revenue that is collected under this 29 chapter from fisheries businesses and that is not subject to division with a municipality 30 under AS 43.75.130 shall be paid by the Department of Commerce, Community, and 31 Economic Development to eligible municipalities under AS 29.60.450. 01  * Sec. 9. AS 43.75 is amended by adding a new section to article 3 to read: 02 Sec. 43.75.150. Municipal reports to the legislature. (a) Except as provided 03 in (c) of this section, not more than 30 days after the convening of each regular 04 legislative session, a municipality that receives tax revenue under AS 43.75.130 - 05 43.75.137 shall prepare and submit to the legislature a report that describes 06 (1) how those funds were used by the municipality in the previous 07 fiscal year; and 08 (2) any harbor maintenance or improvement projects that were funded 09 in whole or in part by the tax revenue collected under AS 43.75.130 - 43.75.137, if the 10 municipality operates a harbor. 11 (b) The report required under (a) of this section may be made jointly with the 12 report required under AS 43.77.060(f). 13 (c) A report is not required under this section if the total tax revenue a 14 municipality receives under AS 43.75.130 - 43.75.137 is less than $10,000. 15  * Sec. 10. AS 43.77.060(a) is amended to read: 16 (a) Subject to appropriation by the legislature and except as provided in (b) of 17 this section, the commissioner shall pay to each 18 (1) unified municipality and to each city located in the unorganized 19 borough 75 [, 50] percent of the amount of tax revenue collected from taxes levied 20 under this chapter on the fishery resource landed in the municipality and accounted for 21 under AS 43.77.050(b); 22 (2) city located within a borough 35 [, 25] percent of the amount of the 23 tax revenue collected from taxes levied under this chapter on fishery resources landed 24 in the city and accounted for under AS 43.77.050(b); and 25 (3) borough 26 (A) 75 [50] percent of the amount of the tax revenue collected 27 from taxes levied under this chapter on fishery resources landed in the area of 28 the borough outside cities and accounted for under AS 43.77.050(b); and 29 (B) 35 [25] percent of the amount of the tax revenue collected 30 from taxes levied under this chapter on fishery resources landed in cities 31 located within the borough and accounted for under AS 43.77.050(b). 01  * Sec. 11. AS 43.77.060(a), as amended by sec. 10 of this Act, is amended to read: 02 (a) Subject to appropriation by the legislature and except as provided in (b) of 03 this section, the commissioner shall pay to each 04 (1) unified municipality and to each city located in the unorganized 05 borough 50 [75] percent of the amount of tax revenue collected from taxes levied 06 under this chapter on the fishery resource landed in the municipality and accounted for 07 under AS 43.77.050(b); 08 (2) city located within a borough 25 [35] percent of the amount of the 09 tax revenue collected from taxes levied under this chapter on fishery resources landed 10 in the city and accounted for under AS 43.77.050(b); and 11 (3) borough 12 (A) 50 [75] percent of the amount of the tax revenue collected 13 from taxes levied under this chapter on fishery resources landed in the area of 14 the borough outside cities and accounted for under AS 43.77.050(b); and 15 (B) 25 [35] percent of the amount of the tax revenue collected 16 from taxes levied under this chapter on fishery resources landed in cities 17 located within the borough and accounted for under AS 43.77.050(b). 18  * Sec. 12. AS 43.77.060(b) is amended to read: 19 (b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 20 subject to appropriation by the legislature, the commissioner shall pay to each 21 (1) city that is located in a borough incorporated after January 1, 1994, 22 the following percentages of the tax revenue collected from taxes levied under this 23 chapter on fishery resources landed in the city and accounted for under 24 AS 43.77.050(b): 25 (A) 50 [45] percent of the tax revenue collected during the 26 calendar year in which the borough is incorporated; 27 (B) 50 [40] percent of the tax revenue collected during the first 28 calendar year after the calendar year in which the borough is incorporated; 29 (C) 50 [35] percent of the tax revenue collected during the 30 second calendar year after the calendar year in which the borough is 31 incorporated; and 01 (D) 50 [30] percent of the tax revenue collected during the third 02 calendar year after the calendar year in which the borough is incorporated; and 03 (2) borough that is incorporated after January 1, 1994, the following 04 percentages of the tax revenue collected from taxes levied under this chapter on 05 fishery resources landed in the cities located within the borough and accounted for 06 under AS 43.77.050(b): 07 (A) 10 [FIVE] percent of the tax revenue collected during the 08 calendar year in which the borough is incorporated; 09 (B) 20 [10] percent of the tax revenue collected during the first 10 calendar year after the calendar year in which the borough is incorporated; 11 (C) 25 [15] percent of the tax revenue collected during the 12 second calendar year after the calendar year in which the borough is 13 incorporated; and 14 (D) 35 [20] percent of the tax revenue collected during the third 15 calendar year after the calendar year in which the borough is incorporated. 16  * Sec. 13. AS 43.77.060(b), as amended by sec. 12 of this Act, is amended to read: 17 (b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 18 subject to appropriation by the legislature, the commissioner shall pay to each 19 (1) city that is located in a borough incorporated after January 1, 1994, 20 the following percentages of the tax revenue collected from taxes levied under this 21 chapter on fishery resources landed in the city and accounted for under 22 AS 43.77.050(b): 23 (A) 45 [50] percent of the tax revenue collected during the 24 calendar year in which the borough is incorporated; 25 (B) 40 [50] percent of the tax revenue collected during the first 26 calendar year after the calendar year in which the borough is incorporated; 27 (C) 35 [50] percent of the tax revenue collected during the 28 second calendar year after the calendar year in which the borough is 29 incorporated; and 30 (D) 30 [50] percent of the tax revenue collected during the third 31 calendar year after the calendar year in which the borough is incorporated; and 01 (2) borough that is incorporated after January 1, 1994, the following 02 percentages of the tax revenue collected from taxes levied under this chapter on 03 fishery resources landed in the cities located within the borough and accounted for 04 under AS 43.77.050(b): 05 (A) five [10] percent of the tax revenue collected during the 06 calendar year in which the borough is incorporated; 07 (B) 10 [20] percent of the tax revenue collected during the first 08 calendar year after the calendar year in which the borough is incorporated; 09 (C) 15 [25] percent of the tax revenue collected during the 10 second calendar year after the calendar year in which the borough is 11 incorporated; and 12 (D) 20 [35] percent of the tax revenue collected during the third 13 calendar year after the calendar year in which the borough is incorporated. 14  * Sec. 14. AS 43.77.060(d) is amended to read: 15 (d) Subject to appropriation by the legislature [TO THE EXTENT THAT 16 APPROPRIATIONS ARE AVAILABLE FOR THE PURPOSE, AND 17 NOTWITHSTANDING THE REQUIREMENT OF AS 37.07.080(e) THAT 18 APPROVAL OF THE OFFICE OF MANAGEMENT AND BUDGET IS 19 REQUIRED], an amount equal to 75 [50] percent of the tax revenue that is collected 20 under this chapter and that is not subject to division with a municipality under (a) - (c) 21 of this section shall be paid by [TRANSMITTED EACH FISCAL YEAR, 22 WITHOUT THE APPROVAL OF THE OFFICE OF MANAGEMENT AND 23 BUDGET, BY THE DEPARTMENT TO] the Department of Commerce, Community, 24 and Economic Development [FOR DISBURSAL] to eligible municipalities under 25 AS 29.60.450. 26  * Sec. 15. AS 43.77.060(d), as amended by sec. 14 of this Act, is amended to read: 27 (d) Subject to appropriation by the legislature, an amount equal to 50 [75] 28 percent of the tax revenue that is collected under this chapter and that is not subject to 29 division with a municipality under (a) - (c) of this section shall be paid by the 30 Department of Commerce, Community, and Economic Development to eligible 31 municipalities under AS 29.60.450. 01  * Sec. 16. AS 43.77.060 is amended by adding new subsections to read: 02 (f) Except as provided in (c) of this section, not more than 30 days after the 03 convening of each regular legislative session, a municipality that receives tax revenue 04 under this section shall prepare and submit to the legislature a report that describes 05 how those funds were used by the municipality in the previous fiscal year and that 06 details any harbor maintenance or improvement projects that were funded in whole or 07 in part by that tax revenue, if the municipality operates harbor facilities. The report 08 may be made jointly with the report required under AS 43.75.150. 09 (g) A report is not required under this section if the total tax revenue a 10 municipality receives under this section is less than $10,000. 11 (h) A municipality that receives a payment under this section shall use 10 12 percent of the funds received under this section to support or enhance commercial 13 fishing. 14  * Sec. 17. AS 43.75.130(i) and AS 43.77.060(g) are repealed. 15  * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPLICABILITY. This Act applies to tax revenue collected by the Department of 18 Revenue under AS 43.75 and AS 43.77 for the 2025 tax year and later tax years. 19  * Sec. 19. Sections 9 and 16 of this Act take effect February 1, 2026. 20  * Sec. 20. Sections 3, 5, 8, 11, 13, 15, and 17 of this Act take effect July 1, 2035. 21  * Sec. 21. Except as provided in secs. 19 and 20 of this Act, this Act takes effect January 1, 22 2026.