Legislature(1995 - 1996)
03/18/1995 10:05 AM STA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.