Legislature(2013 - 2014)HOUSE FINANCE 519
03/06/2014 08:30 AM House FINANCE
Audio | Topic |
---|---|
Start | |
SB124 | |
SB71 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | SB 71 | TELECONFERENCED | |
+ | SB 124 | TELECONFERENCED | |
+ | TELECONFERENCED |
CS FOR SENATE BILL NO. 71(FIN) "An Act relating to the fishery resource landing tax." 9:22:35 AM SENATOR PETER MICCICHE, testified in support of CSSB 71 (FIN). He presented a portion of his sponsor statement. SB 71 is a bill important to commercial fishing families throughout Alaska. It has been introduced to repair glitches in the landing resource tax statutes and regulations that require the payment of unfair penalties and interest by well-intentioned commercial fishermen. Senator Micciche elaborated that the bill changed the current timing of tax payments to align with the publication of the corresponding statewide average fish report. He stated that section 1 aligned the date that the resource landing tax was due with the date that the statewide average fish price report was released. He noted that the report was due March 31st, but sometimes was not published until May. The mismatch in timing resulted in late payment fines and interest for well-intentioned producers as well as confusion, frustration and wasted time that could be better spent harvesting and processing fish to increase revenue. Senator Micciche continued with section 2, which added a new (e) and (f) in AS 43.77.020 appearing in section 3. The current statute included provisions for 4 equal payments, but with the seasonal nature of many fisheries with variability of harvest, it was impossible for resource landing taxpayers to predict their full-year's harvest for equal payments. He noted that many fishermen operated in only one of four quarters per year. He explained that section 3 provided three different methods to make estimated quarterly payments. A new subsection (f) required the taxpayer to notify the department by March 31st of each year the payment they choose. 9:25:11 AM Senator Micciche noted that if a taxpayer failed to select a payment method, the department would help them apply the method with the lowest tax liability. He stated that the bill provided a fair and equitable tax system by aligning the date of the tax with the report. He pointed out the various supporters of the bill. The legislation was designed to bring efficiencies to both fishermen and the department. 9:26:21 AM Vice-Chair Neuman asked about the penalties or late fees. He discussed the tax collected from factory trawlers and floating processors. He mentioned different issues affecting the fisheries. He was involved in discussions with the Department of Revenue and Legislative Legal regarding the use of penalty fees. 9:27:42 AM Senator Micciche did not think that SB 71 was the right bill for intercept issues. He understood the need for fairness. He was willing to discuss the issues with Vice- Chair Neuman. Representative Munoz asked about the issue of cost recovery comparing a flat rate to a percentage. Senator Micciche considered the issue and considered an amendment. He wished for the best bill for fishing families in Alaska. 9:29:16 AM MS. ANNA KIM, DEPARTMENT OF REVENUE TAX DIVISION, believed that the senator captured the sentiment of the legislation. She stated that the administration supported the legislation. 9:30:50 AM JOHANNA BALES, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT OF REVENUE (via teleconference), agreed that the administration supported the legislation. She noted that tax returns were due on April 1st of each year and taxpayers were required to calculate the tax owed based on statewide average prices published by the Department of Fish and Game and the Department of Revenue. She stated that it was impossible for fishermen to calculate the tax by April 1st. Co-Chair Stoltze CLOSED public testimony. SB 71 was HEARD and HELD in committee for further consideration.
Document Name | Date/Time | Subjects |
---|---|---|
CS SB 71 FIN Sponsor Statement.pdf |
HFIN 3/6/2014 8:30:00 AM |
SB 71 |
SB 71 changes from original bill to CS.pdf |
HFIN 3/6/2014 8:30:00 AM |
SB 71 |
SB 71 Letters in Support.PDF |
HFIN 3/6/2014 8:30:00 AM |
SB 71 |
SB 124 DPS Council on Domestic Violence and Sexual Assault Audit 2013.pdf |
HFIN 3/6/2014 8:30:00 AM |
SB 124 |
SB 124 Sponsor Statement.pdf |
HFIN 3/6/2014 8:30:00 AM |
SB 124 |
SB 124 Support.pdf |
HFIN 3/6/2014 8:30:00 AM |
SB 124 |