00SENATE BILL NO. 42                                                                                                      
01 "An Act relating to municipal taxation of alcoholic beverages; and providing for                                        
02 an effective date."                                                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 04.21.010(c) is amended to read:                                                                    
05  (c)  A municipality may not impose taxes on alcoholic beverages except a                                              
06   (1)  property tax on alcoholic beverage inventories;                                                                 
07   (2)  sales tax on alcoholic beverage sales if sales taxes are imposed on                                             
08 other sales within the municipality; a sales tax imposed on alcoholic beverages may                                    
09 be equal to or higher than the sales tax imposed on other sales within the                                              
10 municipality but may not be lower than the sales tax imposed on other sales                                             
11 within the municipality;                                                                                               
12   (3)  sales tax on alcoholic beverage sales that was in effect before                                                 
13 July 1, 1985; and                                                                                                       
14   (4)  sales and use tax on alcoholic beverages if the sale of alcoholic                                               

01 beverages within the municipality has been prohibited under AS 04.11.490.                                               
02    * Sec. 2.  AS 29.45.650(b) is amended to read:                                                                       
03  (b)  A borough levying a sales tax may also by ordinance levy a use tax on the                                        
04 storage, use, or consumption of tangible personal property in the borough. The use tax                                  
05 rate must equal the sales tax rate and the use tax shall be levied only on buyers.  This                               
06 subsection does not apply to a tax levied under AS 04.21.010(c).                                                       
07    * Sec. 3.  This Act takes effect July 1, 1993.