1996-01-17                     House Journal                      Page 2468
HB 427                                                                       
to formal administrative tax appeals; relating to litigation                  
disclosure of public records; clarifying administrative subpoena               
power in certain tax matters; and providing for an effective date.             
                                                                               
was read the first time and referred to the State Affairs Committee, the       
House Special Committee on Oil & Gas, and the Resources and                    
Finance Committees.                                                            
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Administration, 1/17/96                                  
Fiscal note, Dept. of Revenue, 1/17/96                                         
Zero fiscal note, Dept. of Law, 1/17/96                                        
                                                                               
The Governor's transmittal letter, dated January 16, 1996, appears             
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill relating to certain tax appeal procedures.  This bill      
addresses the concerns of fairness and improves the efficiency and             
openness of certain administrative tax appeals presently assigned to the       
Department of Revenue.                                                         
                                                                               
The bill has four main components: transfer of the function of hearing         
certain tax appeals (including appeals regarding seafood marketing             
assessments) from the Department of Revenue (DOR) to a newly-                  
created office of tax appeals in the Department of Administration;             
revision of the tax appeal procedures to encourage earlier exchange of         
information and resolution of tax disputes; opening administrative tax         
appeals to public examination and scrutiny; and clarification of the           
ability of the DOR to obtain information regarding tax matters.                
                                                                               
Transferring the function of hearing administrative tax appeals to the         
Department of Administration will address a perception held by certain         
taxpayers that the current system is unfair because the tax audit and          
appeal function are both in the DOR.  Courts have consistently found           
that combining the functions of auditing taxes and hearing tax appeals         
in the same department is fair.  Nevertheless, I have decided to