Legislature(2015 - 2016)
2016-05-27 House JournalFull Journal pdf
2016-05-27 House Journal Page 2989 HB 4006 HOUSE BILL NO. 4006 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the fisheries business tax and fishery resource landing tax; removing the minimum and maximum restrictions on the annual base fee for the reissuance or renewal of an entry permit or an interim-use permit; relating to refunds of the fisheries 2016-05-27 House Journal Page 2990 business tax and the fishery resource landing tax to local governments; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal note(s) apply: 1. Fiscal, Dept. of Revenue The Governor's transmittal letter dated May 26, 2016, follows: "Dear Speaker Chenault: Under the authority of Article III, Section 18 of the Alaska Constitution, I am transmitting a bill relating to a tax on fisheries business and fishery resource landing and the annual fee for the issuance and renewal of entry permits or interim-use permits. First, the bill would amend AS 16.43.160 related to fees for commercial fishing entry permits or interim-use permits. The Alaska Commercial Fisheries Entry Commission (Commission) sets the annual fee for permits. Current law limits the annual base fee to not less than $30 or not more than $3,000; the bill would remove the minimum and maximum limits. This part of the bill would take effect January 1, 2017, to conform to the Commission's regulatory schedule and to better meet the needs of the commercial fishing community. The bill would increase the tax rates of the fisheries business tax (AS 43.75.015) and the fishery resource landing tax (AS 43.77.010). Some developing fisheries are exempted from the increase. The tax rates covered by these statutes vary from three percent to five percent, depending on the type of fishery. The bill would increase those tax rates by one percentage point. As to specific fisheries, the fisheries business tax on shore based canned salmon would be five percent (the current rate is four percent), the other fisheries resources would be four percent (up from three percent) while the tax levied on a person who processes a fishery resource would pay a tax of four percent (the current rate is three percent) of the value of a commercial fish species. In addition, the bill would change the revenue sharing tax refund to local governments. Currently, the revenue generated by these taxes is 2016-05-27 House Journal Page 2991 split evenly between the State and the municipalities where the fisheries are located. The bill would exempt one percent of the tax revenue collected from the revenue sharing arrangement, but the remaining percentage of the tax revenue would still be paid to the local governments where the fisheries resource is landed. Thank you for your consideration of this measure. Sincerely, /s/ Bill Walker Governor"