Legislature(1997 - 1998)
1997-03-06 Senate Journal
Full Journal pdf1997-03-06 Senate Journal Page 0593 SB 120 SENATE BILL NO. 120 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to a salmon product development and marketing tax credit under the Alaska fisheries business tax and the Alaska fisheries resource landing tax; and providing for an effective date. was read the first time and referred to the Resources and Finance Committees. 1997-03-06 Senate Journal Page 0594 SB 120 Fiscal note published today from Department of Revenue. Governors transmittal letter dated March 5: Dear President Miller: World supplies of salmon have more than doubled in the past decade. Farmed salmon has been aggressively marketed to displace Alaska salmon in several domestic and international markets. To meet this challenge and increase demand for Alaska salmon, we must expand our markets by diversifying the products we offer to our customers and stepping-up our marketing efforts. This legislation was recommended by participants at the Salmon Industry Forum my Administration held recently. It is designed to promote both of these goals while simultaneously increasing the value of the resource to all industry participants, including ex-vessel prices paid to fishermen. This will, in turn, expand employment opportunities in the production of value-added products in Alaska. This bill, part of my Alaska Business Investment Incentive Plan, provides a tax credit against a companys fisheries business tax (raw fish tax) for the purchase of processing equipment that is used in Alaska to produce value-added salmon products. The credit would only apply to equipment that would process salmon beyond a headed and gutted product, excluding canned salmon. In addition, the bill attempts to assist with clearing one of the mightiest hurdles entrepreneurs face--successful marketing of a new product--by extending the raw fish tax credits to marketing efforts for new Alaska salmon products. Tax credits would not exceed 50% of a company's salmon tax liability and could not be used to fund more than 50% of an expenditure. The credit would be available for the 1997, 1998 and 1999 tax years with a two-year carry-forward through 2001. These coming years will be, perhaps, the most critical years the Alaska salmon industry has ever faced. 1997-03-06 Senate Journal Page 0595 SB 120 This legislative proposal is designed to be very surgical. It is not a tax holiday; it is a hand-up to those Alaska salmon businesses that are taking on a tremendous risk and expense in developing new and innovative products, so that more people will eat Alaska salmon. Ensuring the salmon industry is equipped to meet the challenges of the world marketplace will pay big dividends to Alaskas economic future. Sincerely, /s/ Tony Knowles Governor