Legislature(2003 - 2004)
05/16/2003 01:49 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE BILL NO. 293
An Act levying and collecting a state sales and use
tax; and providing for an effective date.
Representative Moses MOVED to RESCIND action taken on
adopting Amendment #5. There being NO OBJECTION, previous
action was rescinded.
Representative Moses MOVED to ADOPT the revised Amendment
#5. (Copy on File).
TIM BENINTENDI, STAFF, REPRESENTATIVE MOSES, explained that
the amendment had been revised to include unincorporated
communities within boroughs. The language in the earlier
amendment addressed only those outside the lines. The new
#5 would add language to Page 14, Line 22, following
"municipality", inserting "an unincorporated community,".
He added that there are about fifty of this type community
throughout the State.
Additionally, on Page 30, Line 19, the revised Amendment #5
would insert that same definition. He noted that the
reference to A.S. 39.52.960 does not contain a definition of
unincorporated communities, making the amendment important.
There being NO OBJECTION, the new revised Amendment #5 was
adopted.
Co-Chair Harris MOVED to ADOPT Amendment #7. (Copy on
File). Co-Chair Williams OBJECTED for the purpose of
discussion.
Co-Chair Harris explained that Amendment #7 would delete all
the text on Page 15, Lines 4-5. The amendment would provide
an exemption for Union due payments.
Representative Whitaker understood that the need was
included in the "unreasonable" category.
LARRY PERSILY, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE,
pointed out that there had been discussion during drafting
in regards to Union dues. The intent was not to tax the
dues because "they are not a service, but a right".
Representative Whitaker reiterated that he understood it was
classified as "intangible". Co-Chair Harris explained that
the action was necessary to guarantee "absolute
clarification".
Representative Stoltze asked if there were any counter-band
fees for business management that might also be exempted.
Representative Hawker explained that the amendment would
make the language explicit and that during the drafting
process it was only "implicit" to the language of the bill.
In order to itemize everything excluded from the bill would
take a very long time. He concluded that the State would
need to rely on the intent behind the "words".
Co-Chair Williams WITHDREW his OBJECTION. There being NO
further OBJECTIONS, Amendment #7 was adopted.
Representative Moses introduced a new amendment to Page 3,
Line 28, deleting "except as specifically prohibited or
limited" and inserting "a" before "municipality". Co-Chair
Williams OBJECTED.
Mr. Persily stated that it was not the intent of the
legislation to limit or prohibit a municipality from levying
a specific excise tax. He acknowledged that municipalities
would be "more comfortable" if that language was removed.
Representative Whitaker noted that he did not object to the
amendment. There being NO OBJECTION, the amendment was
adopted.
Vice-Chair Meyer noted that Representative Chenault had
intended to offer an amendment, however, he was not present.
Co-Chair Williams acknowledged that he knew of that and
recommended that the consideration be made in caucus.
Co-Chair Harris MOVED to report CS HB 293 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
Representative Kerttula OBJECTED. She noted that Juneau has
had a sales tax for a long time and that the proposed
legislation would be detrimental to not only this community
but also the entire State.
Vice-Chair Meyer acknowledged that the legislation was not
"perfect" legislation but was essential. He noted his
appreciation for all the hard work done on the bill, voicing
his support.
Representative Stoltze echoed the comments made by Vice
Chair Meyer. He recommended that the bill go to the House
floor for full debate.
Co-Chair Harris noted that this was the first time that
Alaska has seriously considered a tax. He noted that the
State is headed into some "rough waters" and although the
legislation is not the perfect form, it is necessary. He
applauded the effort of the Ways and Means Committee for the
many hours of work they put in on the legislation. It is
the responsibility of elected officials to determine a way
to help the State move out of our current economic
situation.
Co-Chair Williams noted his appreciation to Mr. Persily and
Ms. Wilson for their work helping to clarify this
complicated legislation and added his appreciation to the
Committee's members working on the bill.
A roll call vote was taken on the motion to move the bill
from Committee.
IN FAVOR: Meyer, Stoltze, Whitaker, Hawker, Harris,
Williams
OPPOSED: Kerttula, Moses, Berkowitz, Foster
Representative Chenault, Representative Joule &
Representative Croft were not present for the vote.
The MOTION PASSED (6-4).
CS HB 293 (FIN) was reported out of Committee with a "do not
pass" recommendation and with new fiscal notes by the
Department of Revenue and the Department of Law.
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