Legislature(2007 - 2008)BELTZ 211
02/01/2007 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB41 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 24 | TELECONFERENCED | |
| += | SB 39 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
SB 41-REPEAL STUDDED TIRE FEE
2:15:13 PM
CHAIR ELLIS announced SB 41 to be up for consideration.
SENATOR WIELECHOWSKI, sponsor of SB 41, explained that the tire
tax generated about $436,000 in 2005 and $446,000 in 2006. A
final report commissioned by the legislature came out after the
bill had been adopted called "The Socio-economic Effects of
Studded Tire Use in Alaska" and found an overall positive impact
on the Alaskan economy from the use of studded tires. Many
studies from all over the world find the use of studded tires
has an overall positive impact because they prevent accidents.
They have better braking, traction, and acceleration. He said a
professor from the University of Alaska testified against the
previous bill when it was passed. He also said a Department of
Transportation and Public Facilities (DOTPF) report in 1996
found that prohibiting studs would result in a significant
increase in accidents.
2:18:30 PM
SENATOR WIELECHOWSKI said discouraging the use of studded tires
has another impact he found in talking to shop owners who said
it was difficult for them to account for all their tires under
this tax program. Some were fined because they couldn't figure
out how to pay it.
CHAIR ELLIS asked if he worked with the administration on its
idea of deleting the program entirely.
SENATOR WIELECHOWSKI responded that he had no objection to
deleting the program entirely.
DANA OWEN, staff to Senator Ellis, explained that the CS is
identical to the governor's bill and removes all tire fees.
JOHN BITNEY, Legislative Liaison, Office of the Governor, said
the governor wants the tax repealed.
2:22:35 PM
SENATOR STEVENS moved to adopt CSSB 41(L&C), version 25-
LS0355\C. There being no objection, the motion carried.
CHAIR ELLIS noted that the Administration has accounted for the
loss of revenue in its FY'08 budget.
2:23:09 PM
SENATOR STEVENS moved to pass CSSB 41(L&C), version C, from
committee with individual recommendations and attached fiscal
note.
SENATOR BUNDE objected citing there is no free lunch and the
user pay concept as reasons. He also pointed out that studs are
effective only a small part of the year, but the rest of the
time they cause wear and tear.
2:27:08 PM
SENATOR HOFFMAN said that Senator Bunde has one false assumption
and that is that all roads in Alaska are paved. He named several
villages that have dirt roads - New Stuyahok and Ekwok. The tax
is applied to many individuals in communities that are not
causing any wear and tear.
SENATOR BUNDE said that those roads are all maintained by the
state and they should help pay for the costs they generate. This
bill removes the whole tire tax program, not just the studded
tax.
2:29:02 PM
A roll call vote was taken. Senators Hoffman, Stevens, Davis,
and Ellis voted yea; and Senator Bunde voted nay. So, CSSB
41(L&C) moved from committee.
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