Legislature(1993 - 1994)
04/29/1993 09:02 AM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
April 29, 1993
9:02 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Loren Leman
Senator Al Adams
Senator Fred Zharoff
MEMBERS ABSENT
Senator Robin Taylor, Vice Chairman
COMMITTEE CALENDAR
HOUSE BILL NO. 253
"An Act amending the basis for determining refunds to local
governments under the program of shared fisheries taxes; and
providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 253 - See Community & Regional Affairs minutes dated
4/28/93.
WITNESS REGISTER
Larry E. Meyers, Director
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, AK 99811-0420
POSITION STATEMENT: Testified in opposition to proposed
amendment
Paul Dick
Juneau Operations
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, AK 99811-0420
POSITION STATEMENT: Testified in opposition to proposed
amendment
ACTION NARRATIVE
TAPE 93-27, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called
to order by Chairman Randy Phillips at 9:02 a.m. He brought
HB 253 (FISHERIES BUSINESS TAXES) before the committee as
the only order of business and invited Larry Meyers,
Director of Income & Excise Audit, Department of Revenue and
Paul Dick, Juneau Operations, Division of Income & Excise
Audit, Department of Revenue to join the members at the
table.
Number 030
LARRY MEYERS addressed some concerns the Department of
Revenue has with a proposed amendment to HB 253, which would
allow communities to collect the fisheries business tax. He
said their purpose in looking at the bill was to try to see
if it would fit in with the current existing operations that
the department has. They believe those operations have run
very smoothly to date; they have been very efficient in
collecting the tax. Their concern is not only the potential
loss of revenue that might come about as a result of the
amendments, but the additional work loads that might be
placed on the department and the individual communities.
Mr. Meyers requested that a memo outlining the following
points of concern be made a part of the record: loss of
revenues; additional burden on fisheries businesses; returns
still be required by the department; administrative costs
higher; enforcement powers diminished; and confusion amongst
taxpayers.
Mr. Meyers stated that based on information that the
department has received from the Governor's office, they
would like to go on record in opposition to the proposed
amendment.
Number 075
SENATOR RANDY PHILLIPS asked Senator Zharoff to explain the
proposed amendment.
SENATOR ZHAROFF said the amendment relates to the five
percent administrative costs. Any negotiations between the
commissioner's office and a municipality that shows the
willingness and has the capability of handling these
functions could share in either that whole 5 percent
administrative cost or a portion of it.
Senator Zharoff said the Kodiak Island Borough is concerned
about further eroding the revenue going to the municipality
from the raw fish tax by another 2.5 percent.
Number 125
SENATOR ADAMS commented that he has mixed feelings on the
amendment, but feels it is a fair amendment.
Number 150
PAUL DICK, Juneau Operations Chief, Income & Excise Audit
Division, Department of Revenue, said the actual costs of
accounting and collecting the monies is substantial, and he
believes the department is doing a very efficient job in
collecting the taxes and having it as a centralized program.
Mr. Dick expressed concern with the concept of communities
collecting fisheries business taxes for the state because
the processors would be reporting to certain municipalities
and not other communities. This would be very confusing for
the processors, especially for the floating processors.
Number 170
SENATOR ZHAROFF said he thought the logistics could be
worked out over a period of time.
Number 200
SENATOR ZHAROFF moved the adoption of the following
amendment:
AMENDMENT #1
Page l, line 1, after "Act": Insert "relating to the
administration of fisheries business licenses and the
fisheries business tax, and"
Page 1, line 4, after "purpose of": Insert "secs. 2 - 4
of"
Page 3, line 9: Insert a new bill section to read:
"*Sec. 5. AS 43.75 is amended by adding a new section to
article 4 to read:
Sec. 43.75.280. MUNICIPALITY AS TAX COLLECTION
AGENT. (a) If a municipality indicates a willingness to act
as the department's agent for purpose of collection of the
license fee and tax imposed by this chapter and the
commissioner believes the municipality is capable of making
and accounting for those collections, the commissioner shall
appoint one or more employees of that municipality to assist
in the collection of revenue owed under the license fee and
tax levied by this chapter.
(b) The commissioner may pay for the services of
the municipal officials appointed to serve as collection
agents under (a) of this section by
(1) entering into contingent fee agreements
the commissioner considers reasonable; or
(2) the payment of amounts out of the proper
appropriation for the department the commissioner considers
reasonable."
Page 3, line 10: Delete "*Sec. 5." and insert "*Sec. 6."
Hearing no objection to Amendment No. 1, the Chairman stated
the motion had passed and the amendment would be
incorporated into a Community & Regional Affairs SCS.
Number 210
SENATOR ZHAROFF moved that HB 253 be passed out of committee
with individual recommendations. Hearing no objection, it
was so ordered.
There being no further business to come before the
committee, the meeting was adjourned at 9:18 a.m.
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