Legislature(2015 - 2016)SENATE FINANCE 532
04/09/2015 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB56 | |
| SCR1 | |
| SJR2 | |
| SB22 | |
| SB26 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 56 | TELECONFERENCED | |
| += | SCR 1 | TELECONFERENCED | |
| += | SJR 2 | TELECONFERENCED | |
| + | SB 22 | TELECONFERENCED | |
| SB 50 | |||
| = | SB 26 | ||
SENATE BILL NO. 22
"An Act relating to the collection costs for the
municipal motor vehicle registration tax; and
providing for an effective date."
2:36:47 PM
SENATOR CATHY GIESSEL, SPONSOR, introduced the bill. She
explained that since the inception of the motor vehicle
registration tax system in 1993, the cost to the state (in
collecting taxes for municipalities) had been reduced
considerably, while the rate charged to communities had
not. SB 22 proposed to reduce the amount that the state
collected from each community that signed on to the
program. She directed attention to the second page of FN 1,
and discussed the list of communities in which local motor
vehicle taxes were collected and 8 percent was retained by
the state. She pointed out that the communities did not
incur 8 percent cost to conduct the tax collecting
activity, and the bill proposed to reduce the
administrative fee to 5.5 percent. The proposed amount was
more closely calculated to the actual cost for the Division
of Motor Vehicles (DMV). She emphasized that there were no
new costs or fees to the state, and the bill left more
money in the communities.
Co-Chair MacKinnon OPENED public testimony.
2:39:35 PM
DANIEL MOORE, TREASURER, MUNICIPALITY OF ANCHORAGE,
ANCHORAGE (via teleconference), testified in support of the
bill. He related that in 2012, the Municipality of
Anchorage increased its rate schedule for the motor vehicle
registration program, almost doubling the rates to match
the rates of Mat-Su. He described the disproportionate
administrative costs of the tax collection after the
dramatic increase in fees, despite the fact that the scope
of work was unchanged. He estimated that the Municipality
of Anchorage was paying the DMV about $500,000 more per
year than it had in prior years. He added that the
Anchorage area had 45 percent of all registered vehicles in
the state, and prior to 2012 it paid 45 percent of the
administrative cost to DMV. Due to the rate schedule
update, the municipality currently paid 59 percent of the
administrative cost. By changing the statutory rate from 8
percent to 5.5 percent, the new payment amount would be
proportionate and benefit the participating communities. He
estimated the each community would gain about 3 percent
additional revenue if the bill successfully passed into
law.
2:42:02 PM
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon reiterated that the committee was
working on the capital budget, and would stand in recess
until later in the day.
SB 22 was HEARD and HELD in committee for further
consideration.
2:42:55 PM
RECESSED
8:50:51 PM
RECONVENED