Legislature(2015 - 2016)BELTZ 105 (TSBldg)
01/28/2016 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB121 | |
| HB12 | |
| HB155 | |
| SB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 155 | TELECONFERENCED | |
| += | HB 12 | TELECONFERENCED | |
| *+ | SB 111 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 121 | TELECONFERENCED | |
HB 155-FEES; WAIVERS; CREDITS; DEDUCTIONS; TAXES
2:05:51 PM
CHAIR COSTELLO announced the consideration of HB 155. [This is
the first hearing and CSHB 155(FIN) is before the committee.]
2:06:05 PM
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 155, introduced the legislation stating
the following:
In the 28th Legislature, legislation was passed that
defined indirect expenditures as foregone revenue. The
legislation also set forth a requirement that certain
reports identify potential loss of foregone revenue by
the department. The Legislative Finance Indirect
Expenditure Report reviewed the departments of
Commerce, Community and Economic Development, Fish and
Game, Health and Social Services and Revenue. The
report identified certain credits, fees, discounts,
and deductions that should be terminated. House Bill
155 repealed some of these expenditures with an
estimated increase of revenue of approximately
$450,000.
He requested that his staff walk through the bill.
2:07:02 PM
BRODIE ANDERSON, Staff, Representative Steve Thompson, Alaska
State Legislature, sponsor of HB 155, stated that the bill is
the next step in addressing the foregone revenue to the state
identified in the 2015 Indirect Expenditure Report. HB 155 will
repeal the following indirect expenditures:
· Small Loan Company Business License Exemption
· The Exploration Incentive Credit
· Tobacco Product Tax Deduction for Timely Filing
· Cigarette Tax Stamp Discount
· Motor Fuel Tax Timely Filing
· Large Passenger Vessel Gambling Tax Deduction
MR. ANDERSON explained that the bill repeals the exemptions,
credits, deductions and discounts in Section 10. The remainder
of the sections provide cleanup language to the portions of
statute that reference those statutory repeals. He provided the
following sectional analysis:
Sections 1-2 repeal references to the Exploration
Incentive Credit from AS 41.09.010(a) and (b).
Section 3 removes references from the Exploration
Incentive Credit from AS 43.20.043(g).
Section 4 amends AS 43.55.210 to disallow the
deduction for federal taxes for the purposes of
calculating the state tax on large passenger cruise
ship gambling activity.
Section 5 amends AS 43.40.010(c) by removing language
that allowed motor fuel dealers to retain a portion of
the motor fuel tax due to cover expenses for filing
motor fuel tax return.
Section 6 removes references to the Cigarette Tax
Stamps from AS 43.50.590(a).
Sections 7, 8 and 9 remove references from the
Exploration Incentive Credit from AS 43.55.011(m),
43.55.020(a) and 43.55.023(l).
Section 10 repeals AS 06.20.030(c) The Small Loan
Company License; AS 38.05.180(i) The Exploration
Incentive Credit; AS 41.09.030 The Exploration
Incentive Credit; AS 43.50.330(b) The Excise Tax on
Tobacco Products;, 43.50.540(c) The Cigarette Tax
Stamps; and 43.50.540(h) the discount for the stamps.
Section 11 provides transition language relating to
the Exploration Incentive Credit.
Section 12 contains the effective date of January 1,
2016 for the gambling tax activities.
Section 13 provides an effective date of July 1, 2015
for the other sections in order to comply with the
State of Alaska fiscal calendar year and all other
related fees, discounts and deductions that are
calculated monthly.
2:10:47 PM
CHAIR COSTELLO questioned the reason for the indeterminate
fiscal note when the anticipated additional revenue is
approximately $450,000.
MR. ANDERSON deferred the question to Brandon Spanos.
2:11:29 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), Anchorage, Alaska, explained that DOR doesn't
collect information needed to estimate the impact of all the
provisions of the bill. The estimated increased revenue of
approximately $450,000 is based on the money forgone for
affixing stamps to cigarette packs and other tobacco products,
the motor fuel credit and large passenger gaming. "Those are
numbers we can quantify and that's where that $450,000 comes
from," he said.
2:12:59 PM
DANIEL STICKEL, Assistant Chief Economist, Tax Division,
Department of Revenue (DOR), Juneau, Alaska, added that DOR
currently does not collect information about the deduction for
federal taxes so there may be some revenue impact from the Large
Passenger Vessel Gambling Tax but the amount of benefit is
unclear. "The $450,000 is probably the floor. The actual revenue
benefit might be higher than that but it is the lack of
information on the gambling taxes is the reason we put an
indeterminate on the revenue."
CHAIR COSTELLO asked if this money would go into the general
fund.
MR. SPANOS indicated that was correct.
CHAIR COSTELLO noted that the sponsor was nodding his head in
the affirmative.
REPRESENTATIVE THOMPSON offered that these credits are taken
against corporate taxes so the business would pay more tax to
the state, which he assumes would go to the general fund.
CHAIR COSTELLO noted that the fiscal note says the regulations
would go into effect the last day of 2016. She asked if that
will cause a problem.
MR. ANDERSON said he spoke with her staff about the need for a
committee substitute to reflect new dates. "The 2016 date would
be 2017 and the 2015 dates would turn into 16."
CHAIR COSTELLO asked if there has been discussion about
emergency regulations to maintain the current timeline.
MR. ANDERSON answered no, but it is a conversation the sponsor
could have with the department.
2:16:21 PM
SENATOR MEYER expressed appreciation for the legislation.
2:16:33 PM
CHAIR COSTELLO opened public testimony. Finding none, she closed
public testimony and held HB 155 in committee.