SB 121: "An Act levying and providing for the collection and administration of excise taxes on the provision of overnight accommodations and authorizing disposition of estimated receipts from those taxes; and providing for an effective date."
00SENATE BILL NO. 121 01 "An Act levying and providing for the collection and administration of excise 02 taxes on the provision of overnight accommodations and authorizing disposition of 03 estimated receipts from those taxes; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. SHORT TITLE. This Act may be known as the Visitor Industry Stabilization 06 Act. 07 * Sec. 2. AS 43 is amended by adding a new chapter to read: 08 Chapter 52. Excise Taxes. 09 Article 1. Excise Tax Administration. 10 Sec. 43.52.010. Administration of tax. (a) The department shall administer 11 the taxes imposed by this chapter. 12 (b) The department shall prescribe and furnish all necessary forms, and adopt 13 all necessary regulations, for the taxes imposed by this chapter. 14 Sec. 43.52.020. Disposition of receipts. (a) Subject to appropriation by the
01 legislature, 25 percent of the tax revenue collected under this chapter shall be 02 distributed to local governments in accordance with AS 43.52.150, 43.52.250, and 03 43.52.350. 04 (b) After making an appropriation under (a) of this section, the legislature may 05 use the remaining annual estimated balance of the account maintained under 06 AS 37.05.142 for deposits into the general fund of the proceeds of the taxes imposed 07 by this chapter to make appropriations for tourism development and marketing and for 08 grants under AS 44.33.135. This subsection is not intended to create a dedication in 09 violation of art. IX, sec. 7, Constitution of the State of Alaska. 10 Article 2. Excise Tax on Transient Lodging Rentals. 11 Sec. 43.52.100. Levy of transient lodging rental tax. There is imposed an 12 excise tax on the rental of transient lodging during the period from May 1 through 13 September 30 of each year. 14 Sec. 43.52.110. Rate of transient lodging rental tax. The tax imposed by 15 AS 43.52.100 - 43.52.150 is levied at a rate of two percent of the amount charged for 16 occupancy or use of the transient lodging. 17 Sec. 43.52.120. Liability for payment of transient lodging rental tax. (a) 18 The tax imposed by AS 43.52.100 - 43.52.150 is due and payable 19 (1) by the person who provides the transient lodging; in this paragraph, 20 "person" includes a state or municipal agency; and 21 (2) in the manner and at the times required by the department by 22 regulation. 23 (b) In municipalities that collect a sales tax or a local transient lodging rental 24 tax, the tax imposed by AS 43.52.100 - 43.52.150 shall be collected by the 25 municipality and remitted to the department. In all other cases, the tax shall be 26 remitted directly to the department by the person who provides the transient lodging. 27 Sec. 43.52.130. Tax not applicable. The provisions of AS 43.52.100 - 28 43.52.150 do not apply to 29 (1) occupancy in premises if occupancy is under a lease or rental 30 agreement subject to AS 34.03 (Uniform Residential Landlord and Tenant Act); 31 (2) lodging at an institution, public or private, if incidental to provision
01 of educational, training, or similar services; 02 (3) occupancy by an employee whose right to occupancy is conditioned 03 upon the occupant's employment; 04 (4) lodging aboard vessels; or 05 (5) all-inclusive tour packages. 06 Sec. 43.52.140. Relationship to municipal levies. The tax imposed by 07 AS 43.52.100 - 43.52.150 is in addition to a tax that may be imposed by a 08 municipality under AS 29.45, including a hotel and motel tax, bed tax, or commercial 09 sleeping accommodations tax. 10 Sec. 43.52.150. Disposition of receipts. Subject to appropriation by the 11 legislature, the commissioner shall pay to each 12 (1) unified municipality and to each city located in the unorganized 13 borough 25 percent of the amount of tax revenue collected from the excise tax levied 14 under AS 43.52.100 - 43.52.150 on the rental of transient lodging in that municipality 15 or city; 16 (2) city located within a borough 12.5 percent of the amount of tax 17 revenue collected from the excise tax levied under AS 43.52.100 - 43.52.150 on rental 18 of transient lodging in that city; 19 (3) borough except the unorganized borough 20 (A) 25 percent of the amount of tax revenue collected from the 21 excise tax levied under AS 43.52.100 - 43.52.150 on the rental of transient 22 lodging in the area of the borough outside cities; and 23 (B) 12.5 percent of the amount of tax revenue collected from 24 the excise tax levied under AS 43.52.100 - 43.52.150 on the rental of transient 25 lodging in cities located within the borough. 26 Article 3. Excise Tax on All-Inclusive Tour Packages. 27 Sec. 43.52.200. Levy of all-inclusive tour package tax. There is imposed an 28 excise tax on the provision of overnight accommodations as part of an all-inclusive 29 tour package during the period from May 1 through September 30 of each year. 30 Sec. 43.52.210. Rate of tax. The tax imposed by AS 43.52.200 - 43.52.250 31 is levied at a rate of $2 a night for each person accommodated.
01 Sec. 43.52.220. Liability for payment of tax. (a) The tax imposed by 02 AS 43.52.200 - 43.52.250 is due and payable 03 (1) by the person who provides the overnight accommodations; in this 04 paragraph, "person" includes a state or municipal agency; and 05 (2) in the manner and at the times required by the department by 06 regulation. 07 (b) In municipalities that collect a sales tax or a local transient lodging rental 08 tax, the tax imposed by AS 43.52.200 - 43.52.250 shall be collected by the 09 municipality and remitted to the department. In all other cases, the tax shall be 10 remitted directly to the department by the person who provides the overnight 11 accommodations. 12 Sec. 43.52.230. Tax not applicable. The provisions of AS 43.52.200 - 13 43.52.250 do not apply to 14 (1) occupancy in premises if occupancy is under a lease or rental 15 agreement subject to AS 34.03 (Uniform Residential Landlord and Tenant Act); 16 (2) lodging at an institution, public or private, if incidental to provision 17 of educational, training, or similar services; 18 (3) occupancy by an employee whose right to occupancy is conditioned 19 upon the occupant's employment; 20 (4) lodging aboard vessels; or 21 (5) transient lodging subject to the tax in AS 43.52.100 - 43.52.150. 22 Sec. 43.52.240. Relationship to municipal levies. The tax imposed by 23 AS 43.52.200 - 43.52.250 is in addition to a tax that may be imposed by a 24 municipality under AS 29.45, including a hotel and motel tax, bed tax, or commercial 25 sleeping accommodations tax. 26 Sec. 43.52.250. Disposition of receipts. Subject to appropriation by the 27 legislature, the commissioner shall pay to each 28 (1) unified municipality and to each city located in the unorganized 29 borough 25 percent of the amount of tax revenue collected from the excise tax levied 30 under AS 43.52.200 - 43.52.250 on the provision of overnight accommodations as part 31 of an all-inclusive tour package in that municipality or city;
01 (2) city located within a borough 12.5 percent of the amount of tax 02 revenue collected from the excise tax levied under AS 43.52.200 - 43.52.250 on the 03 provision of overnight accommodations as part of an all-inclusive tour package in that 04 city; 05 (3) borough except the unorganized borough 06 (A) 25 percent of the amount of tax revenue collected from the 07 excise tax levied under AS 43.52.200 - 43.52.250 on the provision of overnight 08 accommodations as part of an all-inclusive tour package in the area of the 09 borough outside cities; and 10 (B) 12.5 percent of the amount of tax revenue collected from 11 the excise tax levied under AS 43.52.200 - 43.52.250 on the provision of 12 overnight accommodations as part of an all-inclusive tour package in cities 13 located within the borough. 14 Article 4. Excise Tax on Overnight Accommodations 15 on Commercial Passenger Vessels. 16 Sec. 43.52.300. Levy of excise tax on overnight accommodations on 17 commercial passenger vessels. There is imposed an excise tax on overnight 18 accommodations provided on commercial passenger vessels in Alaska waters. 19 Sec. 43.52.310. Rate of tax. The tax imposed by AS 43.52.300 - 43.52.350 20 is levied at a rate of $3 a passenger for each night of accommodations provided. 21 Sec. 43.52.320. Liability for payment of tax. The tax imposed by 22 AS 43.52.300 - 43.52.350 shall be collected and is due and payable to the department 23 (1) by the person who provides overnight accommodations aboard a 24 commercial vessel for which the tax is payable; and 25 (2) in the manner and at the times required by the department by 26 regulation. 27 Sec. 43.52.330. Tax not applicable. The provisions of AS 43.52.300 - 28 43.52.350 do not apply to persons transported on a vessel of the Alaska marine 29 highway system. 30 Sec. 43.52.340. Prohibition on local levies. A municipality may not impose 31 any form of tax on overnight accommodations on commercial passenger vessels. This
01 section applies to home rule and general law municipalities. 02 Sec. 43.52.350. Disposition of receipts. (a) The commissioner shall 03 determine the total number of visitors to each municipality arriving on commercial 04 passenger vessels providing overnight accommodations subject to the tax imposed by 05 AS 43.52.300 - 43.52.350. The commissioner shall calculate a ratio for each 06 municipality, the numerator of which is the total number of visitors to a municipality 07 arriving on commercial passenger vessels providing overnight accommodations subject 08 to the tax imposed by AS 43.52.300 - 43.52.350, and the denominator of which is the 09 total number of visitors to all municipalities arriving on commercial passenger vessels 10 providing overnight accommodations subject to the tax imposed by AS 43.52.300 - 11 43.52.350. 12 (b) Subject to appropriation by the legislature, the commissioner shall pay to 13 each 14 (1) unified municipality and to each city located in the unorganized 15 borough that portion of 25 percent of the amount of tax revenue collected from the 16 excise tax levied under AS 43.52.300 - 43.52.350 on the provision of overnight 17 accommodations on commercial passenger vessels that corresponds to the ratio for that 18 municipality or city determined under (a) of this section; 19 (2) city located within a borough one-half of that portion of 25 percent 20 of the amount of tax revenue collected from the excise tax levied under AS 43.52.300 21 - 43.52.350 on the provision of overnight accommodations on commercial passenger 22 vessels that corresponds to the ratio for that city determined under (a) of this section; 23 (3) borough except the unorganized borough 24 (A) one-half of that portion of 25 percent of the amount of tax 25 revenue collected from the excise tax levied under AS 43.52.300 - 43.52.350 26 on the provision of overnight accommodations on commercial passenger vessels 27 that corresponds to the ratio for each city within the borough, as determined 28 under (a) of this section; and 29 (B) 25 percent of the amount of tax revenue collected from the 30 excise tax levied under AS 43.52.300 - 43.52.350 on the provision of overnight 31 accommodations on commercial passenger vessels that corresponds to the ratio
01 for the borough, as determined under (a) of this section, less the ratios for any 02 cities within the borough, as determined under (a) of this section. 03 Article 5. Definitions. 04 Sec. 43.52.499. Definitions. In this chapter, 05 (1) "all-inclusive tour package" means food, transportation, overnight 06 accommodations, and tours, fishing, hunting, and other services and experiences sold 07 together to visitors as a package for a single price; 08 (2) "commercial passenger vessel" means a boat or vessel that is used 09 in the common carriage of passengers in commerce that provides overnight 10 accommodations for 15 or more passengers; 11 (3) "night" means the period from 9:00 p.m. to 6:00 a.m. Alaska time, 12 or any portion of that period; 13 (4) "passenger" means a person whom a common carrier has contracted 14 to carry from one place to another; 15 (5) "transient lodging" means lodging or space provided in a hotel, 16 rooming or apartment house, motel, bed and breakfast, or similar lodging facility or 17 under a similar arrangement that provides temporary lodging or living quarters. 18 * Sec. 3. This Act takes effect only if a bill establishing the Tourism Development and 19 Marketing Council is passed by the Twenty-First Alaska State Legislature and becomes law. 20 * Sec. 4. If this Act takes effect, it takes effect on the effective date of the bill establishing 21 the Tourism Development and Marketing Council passed by the Twenty-First Alaska State 22 Legislature.