03/25/1996 01:40 PM Senate CRA

           CSHB 272(FIN) MUNICIPAL MOTOR VEHICLE TAX                          
                                                                              
                                                                               
  CHAIRMAN TORGERSON  called the Senate Community & Regional Affairs           
 Committee meeting to order at 1:40 p.m.  He introduced CSHB
(FIN) as the first order of business.                                      
                                                                               
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 R EPRESENTATIVE MARK HANLEY , prime sponsor of HB 272, explained the          
 legislation is a flexibility tool for municipalities.  Under                  
 current statute, there is a fee schedule for a motor vehicle                  
 registration tax that local communities are allowed to participate            
 in if they choose.  The state collects the fee for the                        
 municipalities and charges an 8 percent administrative fee for that           
 collection.  He noted a number of communities opt into the program            
 and a number of communities do not.                                           
                                                                               
 HB 272 will allow the municipalities to change their own motor                
 vehicle registration rate.  The municipality would be required to             
 pass an ordinance in support of an increase or decrease, and                  
 provide written notice to the department at least one year before             
 the change would take place.  A change could be made once every two           
 years.  The municipality would also have to pay a one-time fee to             
 the state for programming changes.                                            
                                                                               
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  KEVIN RITCHIE , Executive Director, Alaska Municipal League, said            
 the legislation is a top priority of both the Alaska Conference of            
 Mayors and the Alaska Municipal League.  He pointed out it                    
 shouldn't be perceived that this would mean an increase in the tax            
 in some communities, in fact, some communities are looking at it as           
 a way to lower the rates.                                                     
                                                                               
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  JUANITA HENSLEY , Division of Motor Vehicles, Department of Public           
 Safety, stated the department supports the legislation.                       
                                                                               
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  SENATOR ZHAROFF  moved that CSHB 272(FIN) be passed out of committee         
 with individual recommendations.   SENATOR RANDY PHILLIPS  objected.          
  SENATOR ZHAROFF  withdrew his motion.                                        
                                                                               
  SENATOR TORGERSON  stated the committee would take a brief at ease.          
                                                                               
 Number 100                                                                    
                                                                               
  SENATOR TORGERSON  called the meeting back to order.                         
                                                                               
  SENATOR ZHAROFF  renewed his motion to pass CSHB 272(FIN) out of             
 committee with individual recommendations.   SENATOR KELLY  stated he         
 has some real doubts about the wisdom of the legislation and does             
 not support it at this time, but he  knows it will be a matter that           
 will be handled by the Senate Finance Committee.  Hearing no                  
 objection to the motion, the Chairman stated CSHB 272(FIN) would              
 move out of commmittee with individual recommendations.