Legislature(2003 - 2004)
2003-03-07 House Journal
Full Journal pdf2003-03-07 House Journal Page 0464 HB 90 The House Special Committee on Fisheries has considered: HOUSE BILL NO. 90 "An Act relating to a salmon product development tax credit under the Alaska fisheries business tax and the Alaska fisheries resource landing tax; and providing for an effective date." and recommends it be replaced with: 2003-03-07 House Journal Page 0465 CS FOR HOUSE BILL NO. 90(FSH) "An Act relating to a salmon product development tax credit under the Alaska fisheries business tax; and providing for an effective date." The report was signed by Representative Seaton, Chair, with the following individual recommendations: Do pass (2): Kott, Wilson Amend (3): Samuels, Guttenberg, Seaton A House Special Committee on Fisheries letter of intent for CSHB 90(FSH), signed by Representative Seaton, Chair, follows: "The following two points are recommendations from the House Special Committee on Fisheries for CSHB 90 (FSH), "An Act relating to a salmon product development tax credit under the Alaska fisheries business tax; and providing for an effective date." The Fisheries Committee passed out CSHB 90 (FSH) with the understanding that these issues would be resolved. 1) The term "value-added salmon products" [AS 43 Sec. 75.035(g)(3)] should be better defined. This definition must be clarified to prevent abuse of the tax credit and decrease enforcement costs. As CSHB 90 (FSH) is written, many processes associated with standard processing are included in the definition. For example, the phrase "beyond gutting of the salmon" (line 22) would allow a heading machine to qualify for a tax credit if it is not explicitly prohibited. At least, this language should also prohibit traditional heading. The Department of Revenue (see attached fiscal note analysis) has suggested defining the terms "value-added" and "salmon product" separately. The Dept. of Revenue has also suggested defining "salmon product" negatively (i.e. defining what should not be considered value added). 2) A "claw-back" provision for the tax credit should be considered. Such a provision would protect the State of Alaska from abuse of the credit. As the Department of Revenue has noted in their fiscal note analysis, "Investment credits are normally complimented by recapture provisions. Recapture, or "claw back" rules, reclaim all or part of the credit if the taxpayer does not follow through" (P.5)." 2003-03-07 House Journal Page 0466 The following fiscal note(s) apply to CSHB 90(FSH): 1. Fiscal, Dept. of Revenue HB 90 was referred to the Resources Committee.