SENATOR  RANDY   PHILLIPS  introduced   SB  176   (MUNICIPAL                 
  INVENTORY  TAX  EXEMPTION:EXPORTS)  as  the  final  order of                 
  business.                                                                    
                                                                               
  PORTIA BABCOCK, staff to the Senate State Affairs Committee,                 
  said the legislation was introduced  by the committee at the                 
  request of the  Anchorage Economic Development  Corporation.                 
  It will allow municipalities the flexibility to partially or                 
  totally  exempt inventories  from taxation,  primarily goods                 
  being held  for shipment  out  of state.   She  said it  was                 
  requested because it  is the general practice  of most other                 
  large export areas that want to encourage their municipality                 
  to be a distribution center for storing large shipments  for                 
  export.                                                                      
                                                                               
  Number 192                                                                   
                                                                               
  SENATOR ADAMS  asked what  the  Anchorage school  district's                 
  position was on  the legislation, because  a portion of  the                 
  taxes received was going to the  school system and by making                 
  the change, all 10 percent can  be exempted.  PORTIA BABCOCK                 
  said the school district has not taken an official  position                 
  on  the bill, but she is not sure if this is even being used                 
  and whether any  revenues currently would be  affected.  She                 
  said she would contact them and ask for a position.  SENATOR                 
  PHILLIPS asked  that information  also be  requested on  how                 
  this tax exemption would affect the public school foundation                 
  formula.                                                                     
                                                                               
  Number 224                                                                   
                                                                               
  KENT SWISHER,  Executive Director, Alaska  Municipal League,                 
  said  the League's position is one of mild support.  He said                 
  the legislation would create an  additional option for local                 
  government; it doesn't  require anyone  to reduce their  tax                 
  revenues, but it  may be  a useful  tool for  those who  are                 
  attempting to do this type of thing.  He said it may be good                 
  policy to  suggest that  this particular  form of  exemption                 
  allow a credit in terms of educational funding.                              
                                                                               
  Number 236                                                                   
                                                                               
  SENATOR RANDY  PHILLIPS asked  that Mr.  Swisher submit  the                 
  League's position in writing for the record.  He then closed                 
  the public  hearing on  SB 176  and said  it  would be  back                 
                                                                               
                                                                               
  before the committee at its next meeting.