SCS CSHB 3(STA): "An Act relating to specie as legal tender in the state; and relating to borough and city sales and use taxes on specie."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 3(STA) 01 "An Act relating to specie as legal tender in the state; and relating to borough and city 02 sales and use taxes on specie." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.650(a) is amended to read: 05 (a) Except as provided in AS 04.21.010(c), AS 29.45.750, and in (f), (h), (i), 06 [AND] (j), and (l) of this section, a borough may levy and collect a sales tax on sales, 07 rents, and [ON] services provided in the borough. The sales tax may apply to any or 08 all of these sources. Notwithstanding other statutes, exemptions may be granted by 09 ordinance. A borough may wholly or partially exempt a source from a borough sales 10 tax that is taxed by a city in that borough under AS 29.45.700. 11 * Sec. 2. AS 29.45.650 is amended by adding a new subsection to read: 12 (l) A borough may not levy or collect a sales or use tax on the sale or 13 exchange of specie. In this subsection, "specie" has the meaning given in 14 AS 44.12.400(d).
01 * Sec. 3. AS 29.45.700(a) is amended to read: 02 (a) A city in a borough that levies and collects areawide sales and use taxes 03 may levy sales and use taxes on all sources taxed by the borough in the manner 04 provided for boroughs. Except as provided in (d), [AND] (e), and (h) of this section, 05 the assembly may by ordinance authorize a city to levy and collect sales and use taxes 06 on other sources. 07 * Sec. 4. AS 29.45.700 is amended by adding a new subsection to read: 08 (h) A city may not levy or collect a sales or use tax on the sale or exchange of 09 specie. In this subsection, "specie" has the meaning given in AS 44.12.400(d). 10 * Sec. 5. AS 44.12 is amended by adding a new section to read: 11 Article 5. Legal Tender. 12 Sec. 44.12.400. Legal tender. (a) To the fullest extent allowed by art. I, sec. 13 10, clause 1, of the Constitution of the United States, legal tender in the state includes 14 specie issued by 15 (1) the federal government at any time if the federal government 16 considers the specie legal tender; 17 (2) a foreign government if, at the time of a sale or exchange, the 18 foreign government considers the specie legal tender and the foreign government is 19 (A) recognized by the United States Department of State as 20 being the legitimate government of a country whose existence is recognized by 21 the United States and has not been designated as a foreign adversary under 22 federal law or regulation; 23 (B) a subnational unit of a government described in (A) of this 24 paragraph that is authorized by the laws of that government to issue its own 25 currency; or 26 (C) an international currency union made up exclusively of 27 countries described in (A) of this paragraph; or 28 (3) the state government if 29 (A) a court of competent jurisdiction, by final and unappealable 30 order, ruled the specie to be within state authority to designate as legal tender; 31 and
01 (B) the state government considers the specie legal tender. 02 (b) A person is not required to accept gold or silver specie as tender. 03 (c) The Legislative Budget and Audit Committee shall study the possibility of 04 establishing additional forms of legal tender for the payment of debts, including public 05 charges, taxes, and other money owed to the state. If the committee determines that 06 additional forms of tender are practical and beneficial, the committee shall prepare 07 legislation establishing an additional form of legal tender for introduction. 08 (d) In this section, 09 (1) "legal tender" means a recognized medium of exchange for the 10 payment of debts; 11 (2) "specie" means gold or silver valued primarily based on its metal 12 content and in the form of 13 (A) coin; or 14 (B) bullion that is stamped or imprinted with its weight and 15 purity. 16 * Sec. 6. Section 4, ch. 100, SLA 2002, as repealed and reenacted by sec. 9, ch. 117, SLA 17 2003, and sec. 2, ch. 30, SLA 2005, is repealed and reenacted to read: 18 Sec. 4. AS 29.45.650(a) is amended to read: 19 (a) Except as provided in AS 04.21.010(c) [, AS 29.45.750,] and in (f), (h), (i), 20 (j), and (l) of this section, a borough may levy and collect a sales tax on sales, rents, 21 and services provided in the borough. The sales tax may apply to any or all of these 22 sources. Notwithstanding other statutes, exemptions may be granted by ordinance. A 23 borough may wholly or partially exempt a source from a borough sales tax that is 24 taxed by a city in that borough under AS 29.45.700.