02/11/2014 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 193(FIN)                                                                                                
                                                                                                                                
     "An Act relating to the joint administration of                                                                            
     tobacco taxes by the state and a municipality."                                                                            
                                                                                                                                
10:20:22 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough MOVED to  ADOPT the proposed committee                                                                    
substitute  for HB  193,  Work  Draft 28-LS0714/P  (Bullock,                                                                    
02/10/14) as  a working document. There  being NO OBJECTION,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
DIRK  CRAFT, STAFF,  REPRESENTATIVE LANCE  PRUITT, spoke  to                                                                    
the changes  in the  new committee substitute.  He explained                                                                    
that the bill title was expanded to include:                                                                                    
                                                                                                                                
     "; and authorizing the Department of Revenue to                                                                            
     furnish to a municipality returns or reports related                                                                       
     to the vehicle rental tax."                                                                                                
                                                                                                                                
Mr.  Craft  continued to  address  the  changes in  the  new                                                                    
committee  substitute  and related  that  Section  1 of  the                                                                    
prior  version  was removed  and  replaced  with Section  2,                                                                    
subsection (e). He  reported that Section 2  of the previous                                                                    
version of  the bill was  now Section  1. He stated  that in                                                                    
Section  1, subsection  (c), the  wording "or  other tobacco                                                                    
products" was  added. He stated  that there were  no changes                                                                    
to subsection  (d) of the  bill and that subsection  (e) was                                                                    
added  in  to  reflect  the Department  of  Revenue's  (DOR)                                                                    
statutes that governed its inspection  and copying of public                                                                    
records, as well its disclosure  of tax returns and reports.                                                                    
He  stated that  originally  Section 2,  subsection (d)  had                                                                    
been in Section  1 of the previous version of  the bill, but                                                                    
that it had  been very broad scoped in  dealing with tobacco                                                                    
taxes  and the  vehicle  rental tax;  when  the section  was                                                                    
narrowed down,  the 2  taxes were  split, which  resulted in                                                                    
the  title change  and  vehicle rental  tax  being moved  to                                                                    
Section 2 of the current version.                                                                                               
                                                                                                                                
DANIEL  MOOR,  MUNICIPALITY  OF  ANCHORAGE,  ANCHORAGE  (via                                                                    
teleconference),  stated that  the original  version of  the                                                                    
bill had  referenced a broader section  of statute; however,                                                                    
a lobbyist  from one of  the oil companies thought  that the                                                                    
statute might  be too broad  and could delve into  other tax                                                                    
return  areas  beyond  the  local   taxes  that  were  being                                                                    
discussed. He  reported that the  intent had always  been to                                                                    
only  focus on  local  taxes that  were  collected by  local                                                                    
governments and  the state; the  2 examples of that  type of                                                                    
tax  were the  vehicle rental  tax and  the tobacco  tax. He                                                                    
reported  that when  the new  committee substitute  had been                                                                    
formulated, the  sponsors had worked  with Johanna  Bales to                                                                    
make  it  very specific  that  the  vehicle rental  tax  and                                                                    
tobacco tax were the only  2 areas that were being discussed                                                                    
in the bill regarding information sharing.                                                                                      
                                                                                                                                
JOHANNA BALES,  DEPUTY DIRECTOR, TAX DIVISON,  DEPARTMENT OF                                                                    
REVENUE,  ANCHORAGE (via  teleconference),  stated that  Mr.                                                                    
Moor had  given a  good overview of  what the  new committee                                                                    
substitute did.  She reported that  the original  bill would                                                                    
have  allowed DOR  to  share all  tax  information with  any                                                                    
municipality,  which  represented  a  concern  to  some  tax                                                                    
payers; as a  result, the bill had been narrowed  to the two                                                                    
tax  types  where  local  jurisdictions  actually  levied  a                                                                    
similar tax to the state.                                                                                                       
                                                                                                                                
10:25:07 AM                                                                                                                   
                                                                                                                                
SB  193  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:25:44 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer discussed the following meeting's agenda.