03/09/1993 01:35 PM House FIN

  HB 133    An Act  amending  the definition  of  `value'  for                 
            purposes of administration of fisheries taxes; and                 
            providing for an effective date.                                   
                                                                               
            HB  133 was reported  out of Committee  with a "do                 
  pass"          recommendation  and  a  fiscal  note  by  the                 
                 Department of Revenue dated 2/17/93.                          
  HOUSE BILL 133                                                               
                                                                               
       "An Act amending the definition of `value' for purposes                 
       of administration of fisheries taxes; and providing for                 
       an effective date."                                                     
                                                                               
  MOLLY  MCCAMMON, AID  TO REPRESENTATIVE  CARL  MOSES, stated                 
  that  HB 133 is  substantially similar  to existing  law but                 
  restructures the definition of "value" used in administering                 
  fisheries taxes in order to enhance clarity.                                 
                                                                               
  The bill is identical  to Resources CSHB 448,  introduced by                 
  Representative Gail Phillips last session, with some further                 
  clarification recommended by the Division of Legal Services.                 
  The legislation has not received any known opposition.                       
                                                                               
  She pointed out, in the  past processors and fishermen  have                 
  disputed  the  definition  of  "value"  in  paying  the  raw                 
  fisheries tax and salmon  enhancement tax.  The argument  is                 
  that bonuses and delivery  costs are not part of  the actual                 
  amount paid fishermen  for their  fish.  The  interpretation                 
  leaves an  opening for processors  to pay  lower prices  for                 
  fish, and make up  for this low price by giving  bonuses for                 
  services such  as delivery  or handling.   HB 133  clarifies                 
  exactly what  services and forms  of payment are  subject to                 
  these taxes.                                                                 
                                                                               
  PAUL  DICK,  JUNEAU  OPERATIONS,   INCOME  &  EXCISE   AUDIT                 
  DIVISION,  DEPARTMENT OF REVENUE,  noted that the Department                 
  of Revenue supports the proposed  legislation and added that                 
                                                                               
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  it would enhance State revenues.                                             
                                                                               
  Representative  Hoffman  questioned  if  the  Department  of                 
  Revenue  thought  that processors  were  currently complying                 
  with the law.  Mr. Dick thought the processors at large were                 
  reporting  to  the Department.    He  pointed out  that  the                 
  legislation  would  most directly  affect  the  mid-size and                 
  smaller processors.    Representative  Hoffman  asked  where                 
  those increased funds  would originate.   Mr. Dick  replied,                 
  the  fiscal  note  represents the  amount  derived  from the                 
  increased value on  fish.  The difference  would be delivery                 
  costs and other charges currently  subtracted from the value                 
  of the fish.                                                                 
                                                                               
  Representative Martin asked if revenue  would be shared on a                 
  50\50 percentage.  Mr. Dick stated it would.                                 
                                                                               
  Co-Chair MacLean inquired which processors would be impacted                 
  by the legislation.   Mr. Dick  replied that all  processors                 
  would be affected.                                                           
                                                                               
  Representative  Martin  MOVED  to  report   HB  133  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  133  was reported  out  of  Committee with  a  "do pass"                 
  recommendations and with a fiscal noted by the Department of                 
  Revenue dated 2/17/93.