Legislature(2005 - 2006)HOUSE FINANCE 519
05/09/2005 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB153 | |
| HB68 | |
| SB22 | |
| SB164 | |
| SB22 | |
| SB135 | |
| SB73 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 153 | TELECONFERENCED | |
| + | SB 22 | TELECONFERENCED | |
| + | SB 164 | TELECONFERENCED | |
| + | SB 135 | TELECONFERENCED | |
| += | HB 68 | TELECONFERENCED | |
| += | SB 73 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 164(FIN)
"An Act relating to the salmon product development tax
credit; providing for an effective date by amending an
effective date in sec. 7, ch. 57, SLA 2003; and
providing for an effective date."
TIM BERRY, STAFF, SENATOR BERT STEDMAN, explained that the
bill would give salmon processors an additional three years
to claim a tax credit. He read the sponsor statement (copy
on file.)
9:25:36 AM
Vice-Chair Stoltze asked about the effective date of 2012.
CHUCK HARLAMERT, REVENUE AUDIT SUPERVISOR, TAX DIVISION,
DEPARTMENT OF REVENUE, explained that the basic credit is
extended to 2008, but the carryover period is extended to
2012. Vice-Chair Stoltze asked if it is capped at $1
million a year. Mr. Harlamert replied that there is not a
cap on the credit itself. The entire unused credit would be
carried over.
9:27:55 AM
Vice-Chair Stoltze asked about the difference in pop-top
cans and the old cans. Mr. Berry explained that a normal
can requires a can opener. The change was requested by the
processors.
Representative Kelly asked why this date is extended beyond
the previous sunset date. Mr. Berry replied that the
processors have taken a while to learn about the credit.
Mr. Harlamert added that it was a request from the Salmon
Task Force.
Representative Kelly asked about outcomes of the bill. Mr.
Harlamert explained about the investments attributed to the
tax credit. Mr. Berry added that processors have testified
in support of the tax credit and the advantages it has
allowed them. Representative Kelly asked if the tax credit
would be gone in three years. Mr. Berry said it is not the
intention of the sponsor to extend it beyond three years.
9:32:38 AM
Representative Hawker noted that he was a very strong
supporter of the original legislation. It did not include
the idea of new packaging products, which is a fundamental
capital investment. He noted that this is a concern of his.
He said he cannot support any new fiscal notes.
Vice-Chair Stoltze MOVED to ADOPT Conceptual Amendment 1, on
page 2, delete lines 9 and 10. Representative Hawker
OBJECTED.
9:35:38 AM
At ease.
9:37:13 AM
Mr. Harlamert noted that under current law new canning
equipment does qualify for the credit. This bill precludes
a credit for that.
Co-Chair Meyer asked if the extension could be reduced to
two years. Mr. Berry responded that three years would allow
processors to do long-range planning.
9:39:00 AM
Vice-Chair Stoltze WITHDREW Conceptual Amendment 1.
Representative Kelly inquired about extending it only one
year.
9:39:55 AM
Representative Hawker questioned the benefit of the bill and
said he is comfortable extending the credit for one year.
9:40:34 AM
At ease.
9:41:06 AM
STEPANIE MADSON, PACIFIC SEAFOOD PROCESSORS, spoke about the
pop-top can issue as it relates to the tax credit. She
encouraged the Committee to leave pop-tops in the bill.
Vice-Chair Stoltze asked for comment about the sunset date.
Ms. Madson said one year would be better than none, but
three years would be best.
9:44:34 AM
KRIS NOROSZ, ICICLE SEAFOODS, PETERSBURG, (via
teleconference) referred to a letter of support for SB 164
(copy on file.) She discussed one of the projects and a
reason to extend the program for longer than one year.
9:47:20 AM
REED STOOPS, LOBBYIST, OCEAN BEAUTY SEAFOOD, related how the
company uses the credit. He noted that 40 new seasonal jobs
were added. He spoke in favor of SB 164.
Co-Chair Meyer said he is comfortable with the 3-year
extension. Vice-Chair Stoltze agreed.
9:49:43 AM
Representative Hawker MOVED to ADOPT Conceptual Amendment 2,
which would delete all language except that relating to the
salmon tax credit extension date of three years. Co-Chair
Meyer OBJECTED.
Representative Hawker explained his reasons for the
amendment.
Representative Joule asked for clarification of the intent
of the bill.
9:52:33 AM
Mr. Berry responded that the intent is indeed to expand
markets and create new ones.
9:53:43 AM
Mr. Harlamert clarified the intent of the amendment. Some
of the language is to clarify existing law and keep
taxpayers out of trouble. Thirty percent of credit claims
fail because existing statute is insufficiently written.
Representative Moses noted that fish taxes are shared with
local governments. Mr. Harlamert replied that the credit
comes entirely out of the states share and does not affect
local governments.
Representative Kelly stated a concern that Conceptual
Amendment 2 would delete the tightening up of the statute,
which is necessary.
9:57:27 AM
Representative Hawker WITHDREW Conceptual Amendment 2.
Representative Foster MOVED to report CSSB 164 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal impact note. There being NO OBJECTION,
it was so ordered.
CSSB 164 (FIN) was REPORTED out of Committee with a "no
recommendation" recommendation and with a zero fiscal impact
note by the Department of Revenue.
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