Legislature(2017 - 2018)ADAMS ROOM 519
02/21/2018 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB321 | |
| HB176 | |
| HB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 96 | TELECONFERENCED | |
| += | SB 97 | TELECONFERENCED | |
| += | HB 176 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 321 | TELECONFERENCED | |
HOUSE BILL NO. 96
"An Act amending the calculation of adjusted gross
income for purposes of the tax on gambling activities
aboard large passenger vessels; repealing a provision
allowing an investigation expense under the Alaska
Small Loans Act to be in place of a fee required under
the Alaska Business License Act; repealing the amount
that may be deducted from the tobacco excise tax to
cover the expense of accounting and filing for the
monthly tax return; repealing the discount on
cigarette tax stamps provided as compensation for
affixing the stamps to packages; and providing for an
effective date."
2:24:20 PM
REPRESENTATIVE STEVE THOMPSON, SPONSOR, thanked the
committee for hearing the bill. He detailed that an
indirect expenditure was a state discount or tax credit
that was never tracked and did not show up in the budget.
During a prior session the legislature established a way to
track indirect expenditures. The Department of Revenue
(DOR) must provide a report every two years on all the
state's foregone revenue. The information was subsequently
turned over to the Legislative Finance Division (LFD) who
examined the data and published a printed report for every
legislator. He noted that some of the indirect expenditures
had sunsets. The items in HB 96 did not contain sunsets.
He indicated that there were four items that amounted to
over $350,000 in lost revenue to the state.
FORREST WOLFE, STAFF, REPRESENTATIVE STEVE THOMPSON,
provided further detail about the bill. He read from
prepared remarks as follows:
House Bill 96 repeals or removes four minor indirect
expenditures from state law, all of which should
provide more income for the state of Alaska. First, HB
96 removes the deduction of federal taxes from
adjusted gross income when calculating the state tax
collected on gambling aboard large cruise ships.
Next, HB 96 repeals a provision allowing an
investigation expense under the Alaska Small Loans Act
to replace a fee required under the Alaska Business
License Act.
Finally, HB 96 repeals allowing the costs of
accounting and filing monthly tax returns to be
deducted from the tobacco excise tax, as well as the
$50 discount on cigarette tax stamps intended to be
compensation for affixing the stamps to packages.
Mr. Wolfe reiterated that the bill was estimated to
increase revenue in FY 19 by at least $339,500 thousand of
which $219.1 thousand would be appropriated into the
general fund.
2:29:12 PM
Co-Chair Seaton pointed to a handout that contained three
components to the bill and not four as stated earlier
[titled "Bills Related to Indirect Expenditures" dated
February 3, 2017 (copy on file)]. Mr. Wolfe replied that
the document had been compiled the past year that included
three of the four items in the bill. The third item
contained two indirect expenditures.
2:30:20 PM
Co-Chair Foster OPENED public testimony.
GHERT ABBOTT, SELF, KETCHIKAN, spoke in support of the
tobacco tax portions of the bill. Eliminating the indirect
expenditure saved the state a small amount of money and
slightly increased the price of a pack of cigarettes. She
pointed out that foregone revenue only provided a
"miniscule" amount of revenue relative to the entire budget
and was no substitute for what she deemed was necessary; a
broad based progressive tax on income and capital gains.
She hoped the committee would not spend much time on
indirect expenditure legislation.
Co-Chair Foster CLOSED public testimony.
Co-Chair Foster relayed the amendment deadline.
HB 96 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the agenda for the following day.
Representative Wilson hoped to receive answers regarding
the supplemental bill prior to reporting it out of
committee.
Co-Chair Foster agreed.
Co-Chair Seaton noted that some of the questions may have
been more policy related than numerical.