Legislature(2003 - 2004)
02/11/2003 09:50 AM House STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 11, 2003
9:50 a.m.
MEMBERS PRESENT
Representative Bruce Weyhrauch, Chair
Representative Jim Holm, Vice Chair
Representative Nancy Dahlstrom
Representative Bob Lynn
Representative Paul Seaton
Representative Ethan Berkowitz
Representative Max Gruenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
^OVERVIEW: POSSIBLE REVENUE SOURCES FROM THE DEPARTMENT OF
NATURAL RESOURCES
TAPES
03-08 SIDE A
CHAIR BRUCE WEYHRAUCH convened the meeting of the House State
Affairs Standing Committee at 9:50 a.m.
SUMMARY OF INFORMATION
CHAIR WEYHRAUCH informed the committee that today's overview was
being held for the purpose of hearing information relative to
possible revenue sources. Departments involved in today's
hearing are the Department of Natural Resources (DNR) and the
Department of Revenue. Chair Weyhrauch requested that a
breakdown of the revenues the state receives from natural
resource development. One of the proposals to close the fiscal
gap is resource development. Streamlining the permitting
process, opening up areas for development, and infrastructure
development are just a few of the ideas to bring more revenue to
Alaska.
LARRY PERSILY, Deputy Commissioner, Department of Revenue,
brought copies of the Fall Revenue Forecast. Mr. Persily stated
that it is hoped that oil as well as gas will become the main
sources of revenue for the State of Alaska. Revenue is received
from the fishing industry through the fishery business tax,
fishery resource landing tax, salmon enhancement tax, seafood
marketing taxes, and licensing and permit fees. While permit and
license fees are fairly stable, the fishery resource tax,
business tax, and marketing assessments fluctuate with the price
of salmon. In addition to royalties off of state lands, there is
a mining license tax, which is based on the value of the ore.
The mining license tax is a production tax similar to oil and gas
production taxes and corporate income taxes paid by fishing
corporations, mining corporations, and timber corporations [these
taxes] go into the state coffers.
MR. PERSILY turned to timber revenues and mentioned that there
are some state land sales and the Mental Health Trust Authority
also has land that it sells. He informed the committee that half
of the fishery business tax is shared with municipalities and
boroughs and a portion of the money from timbers sales goes to
the Mental Health Trust Authority. Revenue from fishery taxes,
licenses, permits, mining, and timber totals almost $100 million
a year. These revenue sources play a different role in the
state's economy than oil and gas. The oil and gas industry pays
for most services but the fishing, mining, and timber industry in
total provide a substantial number of jobs, perhaps their main
purpose is to provide jobs not to provide 70-80 percent of the
general fund budget as the oil and gas industry does.
CHAIR WEYHRAUCH referred to a handout from DNR and requested that
Mr. Persily insert the fishing income as it was excluded from the
handout.
REPRESENTATIVE GRUENBERG commented on the $5 million figure from
recording fees.
MR. PERSILY noted that the state has moved toward user fees to
pay the cost.
There were no further questions of Mr. Persily.
CHAIR WEYHRAUCH asked if anyone from DNR was in the audience to
testify. There was not.
BUCK LINDEKUGEL, Conservation Director, Southeast Alaska
Conservation Council (SEACC), read from a prepared statement
entitled, "Regarding Prospects for Revenue Sources from State
Lands." Mr. Lindekugel offered to answer questions.
CHAIR WEYHRAUCH requested the committee be provided with Mr.
Lindekugel's written statement and reminded the committee that if
there was any further information the members required to
understand the whole state picture, they just need to ask and it
will be made available to them.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
No action was taken.
ADJOURNMENT
CHAIR WEYHRAUCH adjourned the House State Affairs Standing
Committee at 10:02 a.m.
NOTE: The meeting was recorded. A copy of the tape(s) may be
obtained by contacting the House Records Office at State
Capitol, Room 3, Juneau, Alaska 99801 (mailing address), (907)
465-2214, and after adjournment of the second session of the
Twenty-Third Alaska State Legislature this information may be
obtained by contacting the Legislative Reference Library at
(907) 465-3808.
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