04/23/1993 08:45 AM House FIN

  HB 264    An Act  providing for a  fishery resource  landing                 
            tax; and providing for an effective date.                          
                                                                               
            HB  264  was   held  in   Committee  for   further                 
            consideration.                                                     
                                                                               
  CONSENT AGENDA:                                                              
  HOUSE BILL 264                                                               
                                                                               
       "An Act levying  and providing for the collection of an                 
       disposition  of  the  proceeds  of  a  fishery resource                 
       landing tax; and providing for an effective date."                      
                                                                               
  REPRESENTATIVE CARL MOSES explained HB 264.  The legislation                 
  will impact those operators who  both catch and process fish                 
  outside  Alaska  and bring  the  processed product  into the                 
  State.  The  legislation is  aimed at catcher/processors  in                 
  the Exclusive  Economic Zone  ("EEZ) that  currently pay  no                 
  Fisheries Business Tax.                                                      
                                                                               
  The EEZ catcher/processors are not  subject to the Fisheries                 
  Business Tax because  it only  applies if fishery  resources                 
  are  either caught  or  processed  in  Alaska.    Since  the                 
  catcher/processors catch and process in the EEZ exclusively,                 
  the Fisheries Business Tax does not apply to them.                           
                                                                               
  Alaska provides  significant benefits  and  services at  the                 
  same  time  incurs fishery  management  costs  to resources.                 
  Coupled with the impact the  operations have on local Alaska                 
  communities, the tax is one way  to compensate the State for                 
  the services.                                                                
                                                                               
  The Fisheries  Business Tax  applies to  unprocessed fishery                 
  resources while the Landing Tax applies to processed fishery                 
  resources.    If  the Fisheries  Business  Tax  applies, the                 
  Landing Tax will never be applicable.   The Landing Tax only                 
  applies if the first landing  is in this State.   The seller                 
  will generally be liable for the tax.  The tax is imposed on                 
  the owner  of the  resource at  the moment  of unloading  or                 
  transfer.                                                                    
                                                                               
  (Tape Change, HFC 93 - 119, Side 1).                                         
                                                                               
  Co-Chair  MacLean  voiced  her  support  of the  legislation                 
  stating that 89%  of the  factory trollers are  from out  of                 
  state.  She pointed out that  the legislation would bring an                 
  additional $8.6 million dollars revenue to the general fund.                 
  Representative Grussendorf  echoed Representative  MacLean's                 
  sentiments.                                                                  
                                                                               
  Representative  Foster referenced a  letter from  the Bering                 
  Sea  Fishing  Association.   He  noted that  the Association                 
                                                                               
                                7                                              
                                                                               
                                                                               
  would  like to  submit an  amendment to  the  legislation to                 
  provide for  a portion of  the money be  placed into  a non-                 
  profit  corporation to  serve specific  fishery governmental                 
  purposes.  He requested additional time for consideration of                 
  the legislation in order to accommodate further testimony.                   
                                                                               
  NORM  COHEN,  INTERIM EXECUTIVE  DIRECTOR,  COASTAL VILLAGES                 
  FISHING COOPERATIVE DEVELOPMENT, JUNEAU, ALASKA, stated that                 
  the amendment in the proposed committee substitute is narrow                 
  and would only allow for companies which are fishing as part                 
  of a community development quota program  to use it as a tax                 
  credit.                                                                      
                                                                               
  He added, the money would then be available for governmental                 
  type purposes in the  communities which are part of  the CDQ                 
  program.    The  amount of  funds  available  is only  $2.90                 
  thousand  dollars, which would not come  from a general fund                 
  share.  The programs are important and the money could allow                 
  for government type investments.                                             
                                                                               
  HB 264 was HELD in Committee for further consideration.