04/08/2015 01:30 PM House FINANCE

HOUSE BILL NO. 88                                                                                                             
                                                                                                                                
     "An Act relating to remittance of tire fees; and                                                                           
     providing for an effective date."                                                                                          
                                                                                                                                
3:03:40 PM                                                                                                                    
                                                                                                                                
Co-Chair  Neuman  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for  HB  88,  Work  Draft  29-GH1044\W  (Nauman,                                                                    
4/6/15). There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
JANE   PIERSON,   STAFF,  REPRESENTATIVE   STEVE   THOMPSON,                                                                    
explained the changes in the  Committee Substitute (CS). The                                                                    
first change appeared on page 1,  lines 7 through 9 with the                                                                    
addition of the following language:                                                                                             
                                                                                                                                
     The department may only, on a form required under this                                                                     
     subsection, require a seller to provide information on                                                                     
     tires subject to the tax under this section.                                                                               
                                                                                                                                
Ms. Pierson  elaborated that the change  had originated from                                                                    
Co-Chair Neuman  based on a  lengthy form he  had previously                                                                    
shown the committee.  The second change appeared  on page 1,                                                                    
line 14  where the language  "not to exceed $900  a quarter"                                                                    
had been changed to "not to exceed $600 a quarter..."                                                                           
                                                                                                                                
Vice-Chair   Saddler  asked   for   verification  that   the                                                                    
department may only require a  seller to provide information                                                                    
on tires subject to the  tax. He asked for confirmation that                                                                    
the purpose  of the  language was  to limit  the information                                                                    
submitted  to the  department. Ms.  Pierson  replied in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Co-Chair  Thompson noted  that  Representative Kawasaki  had                                                                    
joined the  meeting. He remarked that  department staff were                                                                    
available for questions.                                                                                                        
                                                                                                                                
Representative  Kawasaki referred  to  the quarterly  return                                                                    
["Alaska Tire  Fees Quarterly Return" form  (copy on file)].                                                                    
He  thought  some   of  the  questions  on   the  form  were                                                                    
unnecessary and wondered who had developed the forms.                                                                           
                                                                                                                                
ANNA KIM, TAX DIVISION,  DEPARTMENT OF REVENUE, deferred the                                                                    
question to her colleague.                                                                                                      
                                                                                                                                
Co-Chair Neuman interjected  that he had gone  over the form                                                                    
with the Department  of Revenue (DOR). He  detailed that the                                                                    
department did not need to  know about tractor or ATV tires.                                                                    
The  requirements had  been slimmed  down to  the number  of                                                                    
passenger vehicles  and studded  tires the business  had and                                                                    
how many  it had sold.  He explained  that the fee  had been                                                                    
reduced  because  the  requirements had  been  slimmed  down                                                                    
significantly.                                                                                                                  
                                                                                                                                
Co-Chair Thompson noted the form was much shorter.                                                                              
                                                                                                                                
Representative Kawasaki  believed that sometimes  forms were                                                                    
more  complex than  necessary. He  would not  be opposed  to                                                                    
similar language for all forms requested by the government.                                                                     
                                                                                                                                
Co-Chair Thompson  clarified the question. He  remarked that                                                                    
the form had been simplified significantly.                                                                                     
                                                                                                                                
BRANDON   S.   SPANOS,   DEPUTY  DIRECTOR,   TAX   DIVISION,                                                                    
DEPARTMENT  OF  REVENUE, affirmed  that  the  form had  been                                                                    
simplified.  He detailed  that  the  department had  removed                                                                    
page  2 related  to  inventory. Additionally,  clarification                                                                    
had been added  to line 1 to indicate that  the question was                                                                    
related  to tires  subject  to the  fee  the department  was                                                                    
asking about. Other clarifying changes  had been made to the                                                                    
form  instructions.  He  noted   that  the  forms  would  be                                                                    
published as soon as possible.                                                                                                  
                                                                                                                                
Representative  Gattis  communicated  that tire  dealers  in                                                                    
Mat-Su had been  working with the department  to improve the                                                                    
form.  She   had  confidence  that  the   changes  would  be                                                                    
beneficial.                                                                                                                     
                                                                                                                                
Co-Chair  Thompson remarked  that Representative  Guttenberg                                                                    
had joined the meeting.                                                                                                         
                                                                                                                                
Co-Chair Thompson OPENED and CLOSED public testimony.                                                                           
                                                                                                                                
Co-Chair  Neuman  MOVED  to  REPORT   CSHB  88(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Gara facetiously  OBJECTED for discussion. He                                                                    
joked that he  had not made any comments about  the bill. He                                                                    
WITHDREW his OBJECTION.                                                                                                         
                                                                                                                                
There being NO further  OBJECTION, CSHB 88(FIN) was REPORTED                                                                    
out of  committee with a  "do pass" recommendation  and with                                                                    
one new fiscal impact note from the Department of Revenue.                                                                      
                                                                                                                                
3:10:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:13:59 PM                                                                                                                    
RECONVENED