03/18/1995 10:05 AM House STA

 HSTA - 03/18/95                                                              
 HB 122 - MARINE MOTOR FUEL TAX                                               
                                                                               
 Number 235                                                                    
                                                                               
 REPRESENTATIVE CARL MOSES, Sponsor, presented HB 122, stating it              
 would provide a mechanism for distributing back to municipalities             
 a portion of marine fuel taxes for expenditures on water and                  
 harbor facilities.  Fifty percent of the collected tax revenue                
 would be distributed.  He commented that many coastal communities             
 depend on harbor facilities as the engine driving their economy;              
 HB 122 would provide assistance to local governments for                      
 development and maintenance of docks and harbors.                             
                                                                               
 Number 284                                                                    
                                                                               
 REPRESENTATIVE MOSES referred to this type of improvement in Cold             
 Bay in his district, made by taking money from Unalaska because               
 he considered Cold Bay a higher priority.                                     
                                                                               
 REPRESENTATIVE MOSES added that unless fishery money is allocated             
 in this manner, much of it will be given to the state of                      
 Washington.  He said this is overlooked when the legislature                  
 talks about economic development.                                             
                                                                               
 Number 335                                                                    
                                                                               
 REPRESENTATIVE MOSES said Alaska needs facilities for boats 60                
 feet and under.  In Norton Sound, for example, there was no place             
 to moor small boats last winter so the city had to lift them out              
 of the water for storage on the city dock, at much expense;  some             
 of the boats filled with water and were damaged anyway.  Bristol              
 Bay has a minimum of 500 boats sitting on the beach eight to ten              
 months a year.  These boats could fish in the Dutch Harbor area               
 if there were facilities to accommodate them.  He distributed                 
 three amendments.                                                             
                                                                               
 Number 400                                                                    
                                                                               
 WILLIAM HUNTER, Bethel City Manager, testified via teleconference             
 from Bethel.  He said HB 122 would provide revenues to maintain               
 their harbor area, and the city of Bethel supports the bill.                  
                                                                               
 Number 415                                                                    
                                                                               
 PAUL DICK, Juneau Operations Officer, Income and Excise Audit                 
 Division, Department of Revenue, said HB 122 would cause the                  
 Department of Revenue to share approximately 50 percent of                    
 current marine fuel taxes with municipalities.  Currently, they               
 collect $8.2 million a year in marine fuel taxes, so $4.1 million             
 would be shared to local municipalities and communities, which is             
 reflected in the fiscal note.  Motor fuel wholesalers would be                
 required to report their locations so income could be allocated               
 to the correct municipalities, and this would be an additional                
 reporting requirement.  An additional position would need to be               
 funded to track the fuel reporting.                                           
                                                                               
 Number 460                                                                    
                                                                               
 MR. DICK stated the Administration opposes this bill because of               
 the impact on revenues.  He added he had worked with the sponsor              
 on amendments.                                                                
                                                                               
 Number 470                                                                    
                                                                               
 REPRESENTATIVE MOSES asked the committee to adopt the three                   
 amendments he distributed.                                                    
                                                                               
 REPRESENTATIVE IVAN requested a summary of the amendments.                    
                                                                               
 Number 485                                                                    
                                                                               
 MR. DICK responded that amendment number 1 changes language in                
 the bill to reflect the taxing of motor fuel, not boats.                      
                                                                               
 MR. DICK continued, amendment number 2 adds a new subsection on               
 page 1, line 2, after "municipalities" to clarify that the tax is             
 shared at the final point of sale.                                            
                                                                               
 MR. DICK said amendment number 3 also adds a new subsection on                
 page 3, line 14, to clarify tax revenue collected is also at the              
 final point of sale.                                                          
                                                                               
 Number 508                                                                    
                                                                               
 REPRESENTATIVE GREEN commented these amendments resolved his                  
 questions, and he made a motion to move all three amendments,                 
 numbered 1, 2, and 3, dated 3/17/95.  There were no objections.               
                                                                               
 CHAIR JAMES said she would do a committee substitute to reflect               
 these three amendments.                                                       
                                                                               
 Number 518                                                                    
                                                                               
 REPRESENTATIVE IVAN made a motion to move HB 122, as amended,                 
 from committee with individual recommendations and attached                   
 fiscal notes.  There were no objections, so HB 122 was moved.