Legislature(2013 - 2014)CAPITOL 120
04/11/2013 10:00 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB156 | |
| SB54 | |
| HB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 156 | TELECONFERENCED | |
| + | SB 54 | TELECONFERENCED | |
| *+ | HB 192 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 192-PAYMENT OF FISHERY RESOURCE LANDING TAX
10:14:58 AM
CHAIR SEATON announced that the final order of business would be
HOUSE BILL NO. 192, "An Act relating to the filing date for the
final quarterly payment of, and to the assessment of penalties
under, the fishery resource landing tax."
10:15:11 AM
CHARISSE MILLETT, Alaska State Legislature, introduced HB 192
and explained the intent behind the legislation, paraphrasing
from the sponsor statement, which read as follows [original
punctuation provided]:
Currently, commercial fishermen are required to submit
the resource landing tax by April 1st. The difficulty
with this fixed date is that Department of Fish and
Game does not always have the statewide average fish
report by that time. Though the Department of Revenue
does grant an automatic extension to file the landing
tax return if the report has not been submitted within
30 days of the due date, there are no extensions for
payment time. This results in penalties and interest
to occur. For example, the 2011 list was not published
until May 29, 2012. This results in in the
accumulation of unfair penalties and interest to
commercial fishermen. Commercial fishermen are also
required to make equal quarterly payments. This means
that in some instances, the current statute would
require payment of 50% of the landing taxes before
even leaving port.
House Bill 192 makes necessary changes to the resource
landing tax statutes. The first section aligns the
due date for the resource landing tax with the date
that the statewide average fish report is released.
This is a long overdue remedy. The State of Alaska
should not punish our fishing industry for the delay
of information they have no control over.
The second section of House Bill 192 still maintains
that 100% of the previous year's tax liability or at
least 90% of the estimated amount is owed. However,
the requirement to make equal quarterly payments is
deleted. Instead, the commercial fisherman is allowed
to pay their quarterly tax based on their production
and estimated price for that specific quarter. It
only makes sense that a way of life as volatile as
that of our commercial fishermen should have a tax
structure that reflects those realities. House Bill
192 provides a tax regime that is equitable and fair.
REPRESENTATIVE MILLETT reminded the committee of the volatile
financial experience that is inherent to the fishing business.
10:19:23 AM
CHAIR SEATON clarified that the bill relates to the business of
fishing more than to the actual commercial fishing activity. He
noted that an effective date is not stipulated, and asked
whether a 90 day effective date, following bill passage, would
be appropriate.
REPRESENTATIVE MILLETT indicated that the Alaska Department of
Fish & Game (ADF&G) would stipulate a date via regulation.
REPRESENTATIVE FEIGE opined that an effective date would not be
necessary to include in the bill.
10:22:29 AM
TIM COTTONGIM, Fish Group Manager, Juneau Office, Tax Division,
Department of Revenue (DOR), responding to the effective date
question said a January 1 effective date would align with the
tax year.
10:23:49 AM
REPRESENTATIVE FEIGE moved to adopt the proposed committee
substitute (CS) for HB 192, Version 28-LS0725\U, Bullard,
4/10/13. Without objection, Version U was before the committee.
10:24:14 AM
MR. COTTONGIM pointed out that the CS allows businesses that are
subject to a landing tax to elect of which of the three
installment payment methods is preferable. The decision is due
by March 31 of each year. He pointed out that the provision
could not be honored in 2013 and said this default further
supports a January effective date.
CHAIR SEATON characterized the proposed legislation as a
housekeeping bill, and asked if the system of tax collection
will be better served by passage of HB 192.
MR. COTTONGIM opined that the bill will serve the industry and
the optional pay period should prove helpful.
10:26:54 AM
REPRESENTATIVE FEIGE noted that the bill may not pass this
session, and asked if the effective date could be retroactive to
January 2014, if passed in the 2014 legislative session.
10:27:58 AM
MR. COTTONGIM explained how tax reporting works on a quarterly
basis, and said it would be possible for bill language to
effectively stipulate a retroactive payment.
10:28:40 AM
JULIANNE CURRY, Executive Director, United Fishermen of Alaska
(UFA), stated unqualified support for HB 192.
10:29:11 AM
KATHY HANSEN, Executive Director, Southeast Alaska Fishermen's
Alliance, stated unqualified support for HB 192.
CHAIR SEATON closed public testimony.
10:29:52 AM
CHAIR SEATON offered Conceptual Amendment 1 to add an effective
date of January 1, 2014. Without objection Conceptual Amendment
1 was adopted.
10:30:26 AM
REPRESENTATIVE GATTIS opined that the bill is necessary and
urged committee support.
10:30:54 AM
REPRESENTATIVE FEIGE moved to report the CS for HB 192, Version
28-LS0725\U, Bullard, 4/10/13, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
Without objection, CSHB 192(FSH), was reported from the House
Special Committee on Fisheries.