SB 273: "An Act relating to the Alaska Seafood Marketing Institute, the seafood marketing assessment, the seafood marketing tax, and the seafood product tax; and providing for an effective date."
00 SENATE BILL NO. 273 01 "An Act relating to the Alaska Seafood Marketing Institute, the seafood marketing 02 assessment, the seafood marketing tax, and the seafood product tax; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.43.160(e)(2)(A)(ix) is amended to read: 06 (ix) Department of Revenue - fisheries business tax 07 program, fishery resource landing tax program, salmon enhancement 08 tax program, seafood product tax program, seafood [SALMON] 09 marketing tax program, and dive fishery management assessment 10 program; 11 * Sec. 2. AS 16.51.020(a) is amended to read: 12 (a) The governing body of the institute is a board of directors. The board 13 consists of nine [25] voting members appointed by the governor. In making 14 appointments to the board, the governor shall consider, but need not appoint, nominees
01 presented by persons engaged in fish processing, the financing of fish processing, or 02 commercial fishing. 03 * Sec. 3. AS 16.51.020(b) is amended to read: 04 (b) Four [TWELVE] members of the board shall be seafood processors: three 05 [EIGHT] of the seafood processors must have an annual payroll in the state of more 06 than $2,500,000; one [FOUR] of the seafood processors must have an annual payroll 07 in the state of $50,000 - $2,500,000. Four [TWELVE] members of the board must be 08 engaged in commercial fishing. [THE GOVERNOR, TO THE EXTENT 09 PRACTICABLE, SHALL APPOINT AS COMMERCIAL FISHING MEMBERS OF 10 THE BOARD PERSONS ENGAGED IN COMMERCIAL FISHING IN A FISHERY 11 MANAGEMENT REGION OF THE STATE IN THE SAME PROPORTION THAT 12 THE REGION CONTRIBUTES, OR IS EXPECTED TO CONTRIBUTE DURING 13 THE NEXT YEAR, TO THE TOTAL SALMON MARKETING TAX COLLECTED 14 UNDER AS 43.76.110 - 43.76.130.] One member of the board shall be a lay person 15 selected by the governor. 16 * Sec. 4. AS 16.51.050 is amended to read: 17 Sec. 16.51.050. Quorum. Five [FOURTEEN] members of the board 18 appointed under AS 16.51.020 constitute a quorum for the transaction of business and 19 the exercise of the powers and duties of the board. 20 * Sec. 5. AS 37.05.146(c)(25) is amended to read: 21 (25) receipts from 22 (A) the seafood marketing assessment under AS 16.51.120 - 23 16.51.170; 24 (B) [,] the seafood product tax under AS 43.76.050 - 25 43.76.070; 26 (C) the seafood [SALMON] marketing tax under 27 AS 43.76.110 - 43.76.130; [,] and 28 (D) [OTHER] receipts of the Alaska Seafood Marketing 29 Institute; 30 * Sec. 6. AS 43.76 is amended by adding new sections to read: 31 Article 1A. Seafood Product Tax.
01 Sec. 43.76.050. Seafood product tax. (a) Each processor shall pay a seafood 02 product tax at the rate of 0.3 percent of the value of fishery resources purchased or 03 landed in the state by the processor. 04 (b) Notwithstanding (a) of this section, a processor is not subject to or liable 05 for payment of the tax levied under this section on the value of the fishery resources 06 purchased or landed in the state if the value of fishery resources purchased or landed 07 in the state by the processor is less than $50,000 in a calendar year. This subsection 08 does not exempt a processor from liability for payment of taxes imposed under 09 AS 43.75 or AS 43.77. 10 (c) In this section, "value" means the value of the fishery resources on which 11 the processor must pay the taxes imposed under AS 43.75.015, 43.75.100, or 12 AS 43.77.010. 13 Sec. 43.76.060. Collection of seafood product tax. (a) A processor who is 14 subject to the tax levied under AS 43.76.050 shall remit the total tax owed on the 15 value of fishery resources purchased or landed in the state during each month to the 16 department by the last day of the next month. 17 (b) A processor who is subject to the tax levied under AS 43.76.050 shall 18 (1) maintain records of the value of fishery resources purchased or 19 landed in the state that is subject to the tax levied under AS 43.76.050; 20 (2) report to the department by March 1 of each year the total value of 21 the fishery resources subject to the tax levied under AS 43.76.050 that the processor 22 has purchased or landed in the state during the preceding year. 23 (c) The tax collected under AS 43.76.050 - 43.76.070 shall be deposited in the 24 general fund. The legislature may appropriate revenue generated by the seafood 25 product tax to the Alaska Seafood Marketing Institute for the purpose of supporting 26 the institute's seafood marketing program under AS 16.51. 27 Sec. 43.76.070. Definitions. In AS 43.76.050 - 43.76.070, 28 (1) "processor" means a person who is liable for 29 (A) the tax imposed under AS 43.75.015; 30 (B) the tax imposed under AS 43.75.100; or 31 (C) the landing tax imposed under AS 43.77;
01 (2) "seafood" means finfish, shellfish, and fish by-products, including 02 salmon, halibut, herring, flounder, crab, clam, cod, shrimp, pollock, and aquatic farm 03 products as defined in AS 16.40.199; in this paragraph, "salmon" includes salmon 04 harvested under a special harvest area entry permit issued under AS 16.43.400. 05 * Sec. 7. AS 43.76.110 is amended to read: 06 Sec. 43.76.110. Seafood [SALMON] marketing tax. A person holding a 07 limited entry permit, [OR] interim-use permit, or special harvest area entry permit 08 under AS 16.43, a landing permit under AS 16.05.675, an aquatic farm permit 09 under AS 16.40.100, or a federal commercial fishing license, permit, or quota 10 share shall pay a seafood [SALMON] marketing tax on [AT THE RATE OF ONE 11 PERCENT OF] the value, as defined in as 43.75.290, of the fishery resources 12 [SALMON] that the person removes from the state or transfers to a buyer in the state. 13 The buyer shall collect the seafood [SALMON] marketing tax at the time the fishery 14 resource [SALMON] is acquired by the buyer. The rate of the seafood marketing 15 tax is 16 (1) one percent of the value for salmon; 17 (2) 0.3 percent of the value for a fishery resource other than 18 salmon. 19 * Sec. 8. AS 43.75.120 is amended to read: 20 Sec. 43.76.120. Collection of tax. (a) A buyer who acquires a fishery 21 resource [SALMON] that is subject to the seafood [A SALMON] marketing tax 22 imposed by AS 43.76.110 shall collect the seafood [SALMON] marketing tax at the 23 time of purchase and shall remit the total seafood [SALMON] marketing tax collected 24 during each month to the Department of Revenue by the last day of the next month. 25 (b) A buyer who collects the seafood [SALMON] marketing tax shall 26 (1) maintain records of the value of the fishery resources [SALMON] 27 purchased in the state; 28 (2) report to the Department of Revenue by March 1 of each year the 29 total value, as defined in AS 43.75.290, of the fishery resources [SALMON] that the 30 buyer has acquired during the preceding year. 31 (c) The owner of fishery resources [SALMON] removed from the state is
01 liable for payment of the seafood [A SALMON] marketing tax imposed by 02 AS 43.76.110 if, at the time the fishery resources are [SALMON IS] removed from 03 the state, the tax payable on the fishery resources [SALMON] has not been collected 04 by a buyer. If the owner of the fishery resources [SALMON] is liable for payment of 05 the seafood [SALMON] marketing tax under this subsection, the owner shall comply 06 with the requirements under (a) and (b) of this section to remit the tax to the 07 Department of Revenue, to maintain records, and to report to the Department of 08 Revenue. 09 (d) The seafood [SALMON] marketing tax collected under this section shall 10 be deposited in the general fund. The legislature may appropriate revenue generated 11 by the seafood [SALMON] marketing tax to the Alaska Seafood Marketing Institute 12 for the purpose of supporting the institute's seafood [SALMON] marketing program 13 under AS 16.51. [EXCEPT AS OTHERWISE PROVIDED IN AN 14 APPROPRIATION BY THE LEGISLATURE, THE AMOUNT OF THE 15 ALLOCATION MADE TO THE INSTITUTE'S SALMON MARKETING 16 PROGRAM UNDER AS 16.51.100(7) AND (8) SHOULD NOT EXCEED 10 17 PERCENT OF THE TOTAL AMOUNT OF SALMON MARKETING TAX 18 REVENUE APPROPRIATED FOR THE INSTITUTE.] 19 * Sec. 9. AS 43.76.130 is amended to read: 20 Sec. 43.76.130. Definitions [DEFINITION]. In AS 43.76.110 - 43.76.130, 21 (1) "buyer" means a person who acquires possession of a fishery 22 resource [SALMON] from the person who caught the fishery resource [SALMON] 23 regardless of whether there is an actual sale of the fishery resource [SALMON], but 24 does not include a person engaged solely in interstate transportation of goods for hire; 25 (2) "fishery resource" means finfish, shellfish, and fish by- 26 products, including salmon, halibut, herring, flounder, crab, clam, cod, shrimp, 27 pollock, and aquatic farm products as defined in AS 16.40.199; in this paragraph, 28 "salmon" includes salmon harvested under a special harvest area entry permit 29 issued under AS 16.43.400. 30 * Sec. 10. TERMINATION OF SEAFOOD PRODUCT TAX AND SEAFOOD 31 MARKETING TAX. (a) AS 37.05.146(c)(25)(B); AS 43.76.050, 43.76.060, and 43.76.070
01 are repealed June 30, 2008. 02 (b) AS 37.05.146(c)(25)(C); AS 43.76.110, 43.76.120, and 43.76.130 are repealed 03 June 30, 2008. 04 * Sec. 11. REPEAL OF TRANSITION OF SALMON MARKETING TAX. (a) Section 9, 05 ch. 55, SLA 1993, as amended by sec. 1, ch. 111, SLA 1998, and sec. 3, ch. 136, SLA 2002, 06 is repealed. 07 * Sec. 12. REPEAL OF MISCELLANEOUS PROVISIONS RELATED TO THE 08 SALMON MARKETING TAX. Sections 3, 8(c), and 12, ch. 55, SLA 1993, are repealed. 09 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 12 ALASKA SEAFOOD MARKETING INSTITUTE AND COLLECTION OF THE 13 SEAFOOD MARKETING ASSESSMENT. (a) Notwithstanding AS 16.51.020(b), as 14 amended by sec. 3 of this Act, and subject to AS 16.51.040, a person who is serving as a 15 member of the board of directors of the Alaska Seafood Marketing Institute on the day before 16 the effective date of sec. 3 of this Act may continue to serve as a member of the board for the 17 remainder of the term to which the person was appointed. 18 (b) Before January 1, 2005, the governor shall designate those directorships on the 19 board of directors of the Alaska Seafood Marketing Institute that will be eliminated upon the 20 resignation or removal of a director or upon the expiration of the term of an incumbent 21 director. Before January 1, 2008, the governor shall reduce the membership of the board of 22 directors of the Alaska Seafood Marketing Institute to the number and representation 23 prescribed by AS 16.51.020(b), as amended by sec. 3 of this Act. To the extent possible, the 24 governor shall maintain staggered terms for members of each class of board members. 25 (c) Notwithstanding AS 16.51.050, as amended by sec. 4 of this Act, until January 1, 26 2008, the quorum of the board of directors of the Alaska Seafood Marketing Institute is equal 27 to 50 percent plus one of the number of persons who are appointed and serving on the board 28 on the day of the meeting of the board. 29 (d) Notwithstanding the termination of the current seafood marketing assessment 30 under sec. 14 of this Act, each seafood processor subject to the seafood processor assessment 31 shall remit to the Department of Revenue before April 1, 2005, the total amount of the
01 seafood marketing assessment owed on the value of seafood products produced in Alaska by 02 the processor in 2004. The provisions of AS 43.05 and AS 43.10 apply for the enforcement 03 and collection of the seafood marketing assessment due under provisions of AS 16.51.120 - 04 16.51.170. 05 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 TERMINATION AND REESTABLISHMENT OF THE SEAFOOD MARKETING 08 ASSESSMENT. (a) Notwithstanding AS 16.51.120 - 16.51.140, the seafood marketing 09 assessment levied under AS 16.51.120 that is in effect on the effective date of this section is 10 terminated December 31, 2004. 11 (b) A seafood marketing assessment may be levied on the value of seafood products 12 produced in the state after December 31, 2004, under the procedures prescribed under 13 AS 16.51.120 - 16.51.180. 14 * Sec. 15. Sections 2, 3, 4, 12, 13, and 14 of this Act take effect immediately under 15 AS 01.10.070(c). 16 * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect January 1, 2005.