Legislature(2005 - 2006)BELTZ 211
03/22/2005 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SJR14 | |
| SJR8 | |
| SJR14 | |
| HB90 | |
| HB97 | |
| SB143 | |
| SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 8 | TELECONFERENCED | |
| *+ | SJR 14 | TELECONFERENCED | |
| + | SB 24 | TELECONFERENCED | |
| *+ | SB 143 | TELECONFERENCED | |
| + | HB 90 | TELECONFERENCED | |
| + | HB 97 | TELECONFERENCED | |
SJR 14-REPEAL FEDERAL ESTATE TAX
CHAIR GENE THERRIAULT announced SJR 14 to be the first order of
business.
SENATOR ELTON joined the meeting.
3:41:03 PM
DEBORAH GRUNDMANN, Staff to Senator Charlie Huggins, told
members SJR 14 urges Congress to amend the tax code to
permanently repeal the federal estate and generation-skipping
transfer tax. Individuals accumulate assets using after tax
income and then the heirs pay additional tax on those assets in
the form of inheritance tax.
In 2001 Congress and President Bush enacted bi-partisan
legislation to phase out and eventually repeal the estate tax
until 2010. In 2011 the tax will be reinstated at its old rate
of up to 55 percent with an exemption level of $1 million.
SJR 14 expresses support for the legislation that has been
introduced in both bodies of Congress to permanently repeal the
estate tax.
3:42:36 PM
CHAIR THERRIAULT asked Mr. Williams if the state would be
impacted one way or the other.
MIKE WILLIAMS, Alaska Department of Revenue, participated via
teleconference. He read the following from the fiscal note
analysis that he had prepared:
This resolution requests Congress to permanently
repeal the federal estate and generation-skipping
transfer tax. [The] Alaska state tax, AS 43.31, is
based upon the state's death tax credit allowed under
federal law. In 2001, Congress changed the Internal
Revenue Code to phase out the state death tax credit
by December 31, 2004. Since Alaska's estate tax was
effectively reduced to zero by the change in federal
law, permanent repeal of the federal estate tax will
have no fiscal impact to general fund revenue.
CHAIR THERRIAULT asked whether the Murkowski Administration had
taken a position on SJR 14.
MR. WILLIAMS answered he was not aware of an official position.
SENATOR ELTON said given that state collections are predicated
on federal law, why wouldn't a general fund increment show in FY
2011 if the federal estate tax disappears in 2010.
MR. WILLIAMS clarified that the estate tax would spring back to
life in calendar year 2011. Estate tax for anyone who passed
away in that year wouldn't be due until 15 months after the date
of death so any return to the State of Alaska would come in FY
2012 or later.
SENATOR ELTON asked how much the state collected prior to the
change in federal law.
MR. WILLIAMS estimated the amount to average out at about $2
million per year.
SENATOR ELTON asked if a general fund increment of that amount
would show after 2012.
MR. WILLIAMS said that's correct.
CHAIR THERRIAULT remarked that would be dependent on whether or
not Congress permanently repeals the estate tax.
He said estate tax does have a negative impact and many people
devote considerable time and effort in estate planning. Its
repeal reduces the need for individuals to spend money on
attorneys and accountants to reduce estate size, which could
provide an ongoing savings to constituents.
SENATOR HUGGINS told members that he believes Representative Don
Young would be in full support of SJR 14.
3:48:30 PM
CHAIR THERRIAULT set SJR 14 aside.
SJR 14-REPEAL FEDERAL ESTATE TAX
4:13:27 PM
CHAIR THERRIAULT returned to SJR 14 and recapped the issue for
Senator Wagoner. He noted there were no questions and asked for
a motion.
SENATOR WAGONER moved SJR 14 from committee with individual
recommendations and accompanying fiscal note.
CHAIR THERRIAULT announced that without objection, the motion
carried.
| Document Name | Date/Time | Subjects |
|---|