02/22/2013 09:00 AM Senate FINANCE

SENATE BILL NO. 7                                                                                                             
                                                                                                                                
     "An Act relating to the computation of the tax on the                                                                      
     taxable income of a corporation derived from sources                                                                       
     within the state."                                                                                                         
                                                                                                                                
9:03:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer discussed the day's agenda.                                                                                      
                                                                                                                                
9:04:26 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:05:03 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Meyer discussed the legislation.                                                                                       
                                                                                                                                
Senator  Olson asked  how the  native corporations  would be                                                                    
affected by the legislation.                                                                                                    
                                                                                                                                
MARGARET DOWLING,  STAFF, SENATOR GEISEL, stated  that staff                                                                    
from  Department  of Revenue  (DOR)  was  present to  answer                                                                    
questions. She received excited  responses from members of a                                                                    
native   corporation   who   had   reviewed   the   proposed                                                                    
legislation.  She expected  to see  letters of  support from                                                                    
the  entities   regarding  the  legislation.   She  deferred                                                                    
Senator Olson's question to Johanna Bales.                                                                                      
                                                                                                                                
Senator Olson  asked if  email or  written support  from the                                                                    
native entities was documented.                                                                                                 
                                                                                                                                
JOHANNA  BALES, DEPARTMENT  OF REVENUE,  responded that  the                                                                    
effect on  all corporations  was a  minor reduction  in tax.                                                                    
She stated that the corporations  would benefit from a break                                                                    
in tax.                                                                                                                         
                                                                                                                                
Co-Chair Meyer  understood that the  intent of the  bill was                                                                    
to help businesses in Alaska, primarily small businesses.                                                                       
                                                                                                                                
Co-Chair Kelly  MOVED to REPORT  SB 7 out of  committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  7  was  REPORTED  out  of committee  with  a  "do  pass"                                                                    
recommendation and  with one new  zero fiscal note  from the                                                                    
Department of Revenue.