SB 298: "An Act relating to the fisheries resource landing tax and to the seafood marketing assessment; and providing for an effective date."
00SENATE BILL NO. 298 01 "An Act relating to the fisheries resource landing tax and to the seafood 02 marketing assessment; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. LEGISLATIVE FINDINGS, INTENT, AND PURPOSE. (a) The legislature 05 finds that 06 (1) the state has various research, management, and enforcement 07 responsibilities in connection with the offshore fisheries; 08 (2) through transfer of processed products, taking on and disembarking crew, 09 taking on fuel and supplies, obtaining vessel and gear repairs, discharging wastes, and seeking 10 protection in sheltered water, the exclusive economic zone catcher-processor fleet has a 11 significant presence in the state; and 12 (3) the state and its municipalities and unincorporated communities are affected 13 by the additional burdens placed by the exclusive economic zone catcher-processor fleet on 14 educational facilities and services, road maintenance, public safety, airport and dock facilities,
01 hospitals and health facilities, and other programs. 02 (b) The fisheries resource landing tax 03 (1) is both designed as and intended to be a compensatory tax that 04 complements the fisheries business tax levied and collected under AS 43.75; 05 (2) is intended 06 (A) to compensate the state for the burdens that the exclusive economic 07 zone catcher-processor fleet places on the state and its municipalities and 08 unincorporated communities; and 09 (B) to require the exclusive economic zone catcher-processor fleet to 10 bear a portion of the costs of services received from the state and its municipalities and 11 unincorporated communities; and 12 (3) attempts to achieve a rough equality of treatment between local and 13 interstate commerce among those engaged in fisheries resource businesses in the state in that 14 the tax imposes a burden, comparable to that borne by in-state processors through payment 15 of the fisheries business tax, for the burdens attributable to the activities of the exclusive 16 economic zone catcher-processor fleet on the state and the benefits that the fleet receives from 17 the state. 18 * Sec. 2. AS 16.51.120(a) is amended to read: 19 (a) A seafood marketing assessment shall be levied on the value of seafood 20 products produced [PURCHASED] in Alaska as provided in (b), (c), (d), or (e) of this 21 section if an election is held under [IN ACCORDANCE WITH] AS 16.51.140 at 22 which the assessment is approved by eligible processors who together produce 23 [PURCHASE] at least 51 percent of the value of seafood products produced 24 [PURCHASED] in Alaska in the calendar year. 25 * Sec. 3. AS 16.51.120(b) is amended to read: 26 (b) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 27 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 28 .1 percent of the value of seafood products produced in Alaska [PAID] by the 29 processor. 30 * Sec. 4. AS 16.51.120(c) is amended to read: 31 (c) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF
01 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 02 .2 percent of the value of seafood products produced in Alaska [PAID] by the 03 processor. 04 * Sec. 5. AS 16.51.120(d) is amended to read: 05 (d) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 06 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 07 .3 percent of the value of seafood products produced in Alaska [PAID] by the 08 processor. 09 * Sec. 6. AS 16.51.120(e) is amended to read: 10 (e) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 11 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 12 .4 percent of the value of seafood products produced in Alaska [PAID] by the 13 processor. 14 * Sec. 7. AS 16.51.120 is amended by adding a new subsection to read: 15 (g) Notwithstanding (a) - (e) of this section and AS 16.51.150(c), a processor 16 is not subject to, or liable for payment of, an assessment under this section on the 17 value of the seafood products produced in Alaska if the value of seafood products 18 produced in Alaska by the processor is less than $50,000 in a calendar year. This 19 subsection does not exempt a processor from liability for payment of taxes imposed 20 under AS 43.75 or AS 43.77. 21 * Sec. 8. AS 16.51.130(a) is amended to read: 22 (a) A seafood marketing assessment levied under AS 16.51.120(b), (c), (d), or 23 (e) shall be terminated by the commissioner of revenue if 24 (1) an election is held under [IN ACCORDANCE WITH] 25 AS 16.51.140 in which the termination is approved by eligible processors who together 26 produce [PURCHASE] at least 51 percent of the total value of seafood products 27 produced [PURCHASED] in Alaska during the calendar year; or 28 (2) the board, at a regularly scheduled meeting, adopts a resolution 29 approved by two-thirds of the voting membership of the board requesting the 30 commissioner of revenue to terminate the assessment. 31 * Sec. 9. AS 16.51.130(b) is amended to read:
01 (b) An election under (a)(1) of this section shall be held if 02 (1) the proposed election for the termination of the assessment is 03 approved by a majority of the whole membership of the board at a regularly scheduled 04 meeting; or 05 (2) a petition is presented to the director of elections requesting 06 termination of the assessment by eligible processors who together produce 07 [PURCHASE] at least 25 percent of the total value of seafood products produced 08 [PURCHASED] in Alaska during the calendar year. 09 * Sec. 10. AS 16.51.150 is amended to read: 10 Sec. 16.51.150. DETERMINATION OF VALUE. Upon request from the 11 director of elections, the commissioner of revenue shall determine 12 (1) the total value of seafood products produced [PURCHASED] in 13 Alaska during any calendar year; 14 (2) whether the eligible processors approving the levy or termination 15 of a seafood marketing assessment together produced [PURCHASED] at least 51 16 percent of the total value of seafood products produced [PURCHASED] in Alaska 17 during the calendar year; or 18 (3) whether the eligible processors petitioning for an election under 19 AS 16.51.130(b)(2) together produced [PURCHASED] at least 25 percent of the total 20 value of seafood products produced [PURCHASED] in Alaska during the calendar 21 year. 22 * Sec. 11. AS 16.51.150 is amended by adding new subsections to read: 23 (b) The total value of seafood products produced in Alaska in a calendar year 24 is the sum of the 25 (1) total value of the fisheries resource on which the tax imposed under 26 AS 43.75.015 and 43.75.100 is levied in that calendar year; and 27 (2) total value of the fisheries resource on which the tax imposed under 28 AS 43.77 is levied in that calendar year. 29 (c) The value of seafood products produced in Alaska by a processor during 30 a calendar year is the sum of the 31 (1) total value of the fisheries resource on which the processor must
01 pay the tax imposed under AS 43.75.015 and 43.75.100 in that calendar year; and 02 (2) total value of the fisheries resource on which the processor must 03 pay the tax imposed under AS 43.77.010 in that calendar year. 04 * Sec. 12. AS 16.51.160(a) is amended to read: 05 (a) Each processor [PROCESSORS] shall remit to the Department of Revenue 06 before [BY] April 1 of each year the total amount of the seafood marketing 07 assessment owed on the value of [PAID FOR] seafood products produced in Alaska 08 by the processor in the previous calendar year. 09 * Sec. 13. AS 16.51.180(3) is repealed and reenacted to read: 10 (3) "processor" means a person who is liable for 11 (A) the tax imposed under AS 43.75.015; 12 (B) the tax imposed under AS 43.75.100; or 13 (C) the landing tax imposed under AS 43.77. 14 * Sec. 14. AS 16.51.180 is amended by adding new paragraphs to read: 15 (7) "eligible processor" means a processor who would be liable for 16 payment of a seafood marketing assessment levied under AS 16.51.120; 17 (8) "produce" means perform an activity upon which a tax is imposed 18 under AS 43.75 or AS 43.77, including the purchase, production, landing, or export 19 of a fisheries resource. 20 * Sec. 15. AS 21.89.070(c) is amended to read: 21 (c) A contribution claimed as a credit under this section may not 22 (1) [MAY NOT] be claimed as a credit under more than one provision 23 of this title; and 24 (2) [MAY NOT,] when combined with credits taken during the 25 taxpayer's tax year under AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, 26 [OR] AS 43.75.018, or AS 43.77.043, exceed $150,000. 27 * Sec. 16. AS 43.20.014(d) is amended to read: 28 (d) A contribution claimed as a credit under this section may not 29 (1) [MAY NOT] be claimed as a credit under another provision of this 30 title; 31 (2) [MAY NOT] also be allowed as a deduction under 26 U.S.C. 170
01 against the tax imposed by this chapter; and 02 (3) [MAY NOT,] when combined with credits taken during the 03 taxpayer's tax year under AS 21.89.070, AS 43.55.019, AS 43.56.018, AS 43.65.018, 04 [OR] AS 43.75.018, or AS 43.77.043, exceed $150,000. 05 * Sec. 17. AS 43.55.019(d) is amended to read: 06 (d) A contribution claimed as a credit under this section may not 07 (1) be claimed as a credit under another provision of this title; and 08 (2) when combined with credits taken during the taxpayer's tax year 09 under AS 21.89.070, AS 43.20.014, AS 43.56.018, AS 43.65.018, [OR] AS 43.75.018, 10 or AS 43.77.043, exceed $150,000. 11 * Sec. 18. AS 43.56.018(d) is amended to read: 12 (d) A contribution claimed as a credit under this section may not 13 (1) be claimed as a credit under another provision of this title; and 14 (2) when combined with credits taken during the taxpayer's tax year 15 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.65.018, [OR] AS 43.75.018, 16 or AS 43.77.043, exceed $150,000. 17 * Sec. 19. AS 43.65.018(d) is amended to read: 18 (d) A contribution claimed as a credit under this section may not 19 (1) be claimed as a credit under another provision of this title; and 20 (2) when combined with credits taken during the taxpayer's tax year 21 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, [OR] AS 43.75.018, 22 or AS 43.77.043, exceed $150,000. 23 * Sec. 20. AS 43.75.018(d) is amended to read: 24 (d) A contribution claimed as a credit under this section may not 25 (1) be claimed as a credit under another provision of this title; and 26 (2) when combined with credits taken during the taxpayer's tax year 27 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, [OR] AS 43.65.018, 28 or AS 43.77.043, exceed $150,000. 29 * Sec. 21. AS 43.77.010 is amended to read: 30 Sec. 43.77.010. LANDING TAX. A person who engages or attempts to 31 engage in a floating fisheries business in the state and who owns [A PERSON
01 OWNING] a fishery resource that is not subject to AS 43.75 but that is brought into 02 the jurisdiction of, and first landed in, this state is liable for and shall pay a landing 03 tax on the value of the fishery resource. The amount of the landing tax is 04 (1) for a developing commercial fish species, as defined under 05 AS 43.75.290, one percent of the value of the fishery resource at the place of 06 landing; 07 (2) for a fish species other than a developing commercial fish 08 species, three [3.3] percent of the value of the fishery resource at the place of the 09 landing. 10 * Sec. 22. AS 43.77 is amended by adding a new section to read: 11 Sec. 43.77.043. FISHERIES RESOURCE LANDING TAX EDUCATION 12 CREDIT. (a) In addition to the credit allowed under AS 43.77.040, for cash 13 contributions accepted for direct instruction, research, and educational support 14 purposes, including library and museum acquisitions and contributions to endowment, 15 by an Alaska university foundation or by a nonprofit, public or private, Alaska two- 16 year or four-year college accredited by a regional accreditation association, a person engaged 17 in a floating fisheries business is allowed as a credit against the tax due under this chapter 18 (1) 50 percent of contributions of not more than $100,000; and 19 (2) 100 percent of the next $100,000 of contributions. 20 (b) Each public college and university shall include in its annual operating 21 budget request contributions received and how the contributions were used. 22 (c) A contribution claimed as a credit under this section may not 23 (1) be claimed as a credit under another provision of this title; and 24 (2) when combined with credits taken during the taxpayer's tax year 25 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, or 26 AS 43.75.018, exceed $150,000. 27 (d) The total tax credits that may be claimed for a tax year under this section 28 and under AS 43.77.047 combined may not exceed 50 percent of the taxpayer's 29 landing tax liability under AS 43.77.010 for the tax year. 30 * Sec. 23. AS 43.77 is amended by adding a new section to read: 31 Sec. 43.77.047. FISHERIES RESOURCE LANDING TAX CREDIT FOR
01 CAPITAL EXPENDITURES. (a) A person who is subject to the tax under this 02 chapter is entitled to a credit of not more than 50 percent of the landing tax liability 03 under AS 43.77.010 for capital expenditures made during the tax year if an application 04 qualifying for the credit is approved by the department in advance of the capital 05 expenditure and before January 1, 2000. A taxpayer may claim a credit under this 06 subsection for a maximum period of three consecutive years. A taxpayer may claim 07 the credit for capital expenditures only for expenditures made by the taxpayer for (1) 08 equipment and capital improvements; or (2) participation in, contribution to, or 09 donation for the purchase or construction of equipment or capital improvements by 10 another person. An applicant for the credit may elect to begin the three-year period 11 with tax year 1997, 1998, or 1999. The department may modify or revoke the 12 approval of the application for credit at any time. 13 (b) A taxpayer who elects to begin the three-year period for the capital 14 expenditures tax credit under this section and whose project was approved by the 15 department under this section before January 1, 2000, may claim the capital 16 expenditures tax credit for tax year 2000 or 2001 for capital expenditures made by the 17 taxpayer during the 1999 tax year. 18 (c) For purposes of this section, a capital expenditure qualifies for a tax credit 19 if the expenditure 20 (1) increases product diversity or production efficiency and capacity, 21 adds product value, or improves product quality, at a shore-based fisheries business 22 facility in the state; or 23 (2) contributes to the development of a cooperative seafood industrial 24 park in the state. 25 (d) Except as provided in (b) of this section, the portion of a capital 26 expenditure that is eligible for a credit under this section but is claimed during a single 27 tax year may not be carried back to a prior tax year but is available for the 28 computation as a credit under this section for subsequent tax years within the three- 29 year period elected under (a) of this section. 30 (e) The total tax credits that may be claimed for a tax year under this section 31 and under AS 43.77.043 combined may not exceed 50 percent of the taxpayer's
01 landing tax liability under AS 43.77.010 for the tax year. 02 (f) The department may not approve a tax credit under this section if 03 (1) the property for which the capital expenditure was made was sold 04 or transferred between fisheries businesses having substantial common ownership; or 05 (2) the taxpayer claiming the credit is in arrears in the payment of a 06 seafood marketing assessment under AS 16.51.120 or a tax imposed by this title; for 07 purposes of this paragraph, a taxpayer is not in arrears if the payment is under 08 administrative or judicial appeal. 09 (g) The department shall prepare an application form for a credit under this 10 section. A taxpayer claiming the credit allowed by this section must submit an 11 application for the credit on that form. 12 (h) The department shall approve or disapprove an application for a credit 13 under this section not later than 60 days after receiving the application. 14 (i) Not later than the 15th legislative day of each regular legislative session the 15 Department of Revenue, in conjunction with the Department of Commerce and 16 Economic Development, shall submit to the legislature a report on the capital 17 expenditures tax credit program under this section. The report must describe the 18 expenditures for which a credit was approved during the previous tax year and, if 19 possible, the increase in employment and processing capacity by the taxpayer for 20 which the credit was approved. 21 (j) In this section, 22 (1) "cooperative" has the meaning given in AS 10.15.595; 23 (2) "seafood industrial park" means a seafood processing center with 24 facilities to land, handle, and process or to ship or transship to any location all 25 marketable species of seafood; a seafood industrial park may contain commercial 26 facilities to support the activities of the park, and the labor force and vessels that 27 operate at or from the park. 28 * Sec. 24. AS 43.77.050(b) is amended to read: 29 (b) The [AFTER PAYMENT OF THE AMOUNT DETERMINED UNDER 30 (a) OF THIS SECTION, THE BALANCE OF THE] tax collected under this chapter 31 shall be paid into a separate account in the general fund. The annual balance in the
01 account may be appropriated by the legislature for revenue sharing under 02 AS 43.77.060. The amount of all tax credits approved by the commissioner under 03 AS 43.77.040(b) shall be deducted from amounts paid to municipalities under 04 AS 43.77.060(a) - (c). The amount of tax credits approved by the commissioner 05 under AS 43.77.043 and 43.77.047 may not be deducted from amounts paid to 06 municipalities under AS 43.77.060(a) - (c). 07 * Sec. 25. AS 43.77.200 is amended by adding a new paragraph to read: 08 (7) "engages or attempts to engage in a floating fishery business in the 09 state" means conducting in the state an activity as part of an integrated mobile business 10 involving the harvesting or taking, processing, transportation, or delivery of a fishery 11 resource, including transfer of fishery resources or processed products, taking on and 12 disembarking crew, taking on fuel or supplies, obtaining vessel or gear repairs, 13 discharging wastes, seeking protection in sheltered waters, and any other related 14 activity that makes a claim on the resources of the state. 15 * Sec. 26. CREDIT FOR TAXES PAID. The Department of Revenue shall apply the 16 amount of tax paid by a person under AS 43.77, before the effective date of this section of 17 this Act, that is equal to three-tenths of one percent of the value of the fishery resource subject 18 to the landing tax under AS 43.77 as a credit toward the seafood marketing assessment under 19 AS 16.51, as amended by this Act, that is retroactively imposed by this Act upon a person 20 subject to the landing tax under AS 43.77, as amended by this Act. 21 * Sec. 27. AS 16.51.180(6) and AS 43.77.050(a) are repealed. 22 * Sec. 28. Except for sec. 23 of this Act, this Act is retroactive to January 1, 1994, and 23 applies to activities subject to the fisheries resource landing tax levied and collected under 24 AS 43.77 occurring after December 31, 1993, and to the seafood marketing assessment 25 assessed and collected under AS 16.51. 26 * Sec. 29. Except for sec. 23 of this Act, this Act takes effect immediately under 27 AS 01.10.070(c). 28 * Sec. 30. Section 23 of this Act takes effect January 1, 1997.