HB 537: "An Act relating to the levy, collection, and administration of sales and use taxes on tourism services; and providing for an effective date."
00 HOUSE BILL NO. 537 01 "An Act relating to the levy, collection, and administration of sales and use taxes on 02 tourism services; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43 is amended by adding a new chapter to read: 05 Chapter 51. Tourism Services Sales and Use Taxes. 06 Sec. 43.51.010. Levy of tourism services sales and use taxes. (a) There is 07 levied a sales tax on the sale in this state of tourism services, except to the extent 08 precluded by federal law. 09 (b) There is levied a use tax on the use of a tourism service in this state, except 10 to the extent precluded by federal law. 11 (c) Notwithstanding any contrary provision of this chapter, the use tax under 12 (b) of this section does not apply to a tourism service that has already been subjected 13 to the sales tax under (a) of this section. 14 Sec. 43.51.020. Rate of tourism services sales and use taxes. The sales and
01 use taxes imposed by this chapter are levied at a rate of five percent of the sales price 02 for the tourism service. The tax shall be stated as a separate item on the invoice or 03 other receipt issued by the seller or commercial provider. 04 Sec. 43.51.030. Registration for seller or commercial provider of tourism 05 services. A seller or commercial provider of tourism services in this state shall apply 06 for and obtain a registration from the department. The department shall prescribe by 07 regulation the application process, the form of the registration, duration of the 08 registration, and other requirements to secure and maintain registration under this 09 chapter. The registration under this chapter may be demonstrated either by a 10 certificate of registration issued by the department or by an endorsement for the 11 business license issued under AS 43.70. Regulations adopted under this section shall 12 require that the applicant affirm that the applicant will file returns, collect the taxes, 13 and pay the taxes to the department as required by this chapter. 14 Sec. 43.51.040. Apportionment. (a) If a tourism service takes place both 15 inside and outside the state, the taxes levied under AS 43.51.010 are apportioned on 16 the total sales price for the tourism service multiplied by the ratio of the number of 17 Alaska days to the total number of days the tourism service takes place in all states 18 and foreign countries. 19 (b) For a tourism service that includes travel aboard a cruise ship, the goods 20 and services provided aboard the cruise ship shall be apportioned under (a) of this 21 section separately from the goods and services not provided aboard the cruise ship. 22 (c) The department, by regulation, may establish the method, including the use 23 of a regularly published schedule, by which the number of days is determined for 24 purposes of this section. 25 (d) In this section, "Alaska days" means days on which the tourism service 26 takes place more of the time in Alaska than in any other state or country. 27 Sec. 43.51.050. Liability for payment of tourism services sales and use 28 taxes. (a) A seller of tourism services engaged in business in this state shall collect 29 the sales tax imposed by this chapter at the time of the sale. 30 (b) A commercial provider engaged in business in this state shall collect the 31 use tax imposed by this chapter before or in conjunction with the provision of a
01 tourism service. 02 (c) The sales and use taxes imposed by this chapter shall be collected in trust 03 and paid to the department 04 (1) by the seller or commercial provider on the last day of the calendar 05 month immediately following the calendar month in which the taxes are required to be 06 collected or on another less frequent schedule established by the department by 07 regulation; and 08 (2) in the manner required by the department by regulation. 09 (d) A return of the seller or commercial provider, made under penalty of 10 perjury, is due with the taxes imposed by this chapter. 11 (e) The seller or commercial provider is liable to the state for the taxes 12 imposed by this chapter if the taxes are not collected and remitted as required by this 13 chapter. The department may assess the taxes, interest, and penalties imposed by or 14 under this chapter in the manner provided in AS 43.05. 15 (f) The department may by regulation provide for an incentive to a seller or 16 commercial provider for electronically filing returns and making payments, or other 17 use of technology or filing methodologies to improve the efficiency of tax 18 administration. Regulations adopted under this subsection must 19 (1) establish the duration, levels, nature, and value of the incentive; the 20 value of incentive established under this subsection may not exceed $300 per return, 21 application, filing, or payment; and 22 (2) require that the incentive be available only if the return, 23 application, filing, or payment is filed timely with the department in accordance with 24 this chapter. 25 Sec. 43.51.060. Administration of tourism services sales and use taxes. (a) 26 The department shall administer the taxes imposed by this chapter and may adopt 27 regulations to carry out the purposes of this chapter. 28 (b) The proceeds of the taxes collected under this chapter shall be 29 deposited in the general fund. 30 Sec. 43.51.990. Definitions. In this chapter, 31 (1) "commercial provider"
01 (A) means a person engaged in the business of providing the 02 tourism service; 03 (B) does not include a person exempt from federal income tax 04 under 26 U.S.C. 501(c)(3), if the business is not an unrelated trade or business 05 that meets the standards of 26 U.S.C. 513; 06 (2) "cruise ship" means a marine vessel that is used in the common 07 carriage of passengers in foreign or interstate commerce in the marine waters of the 08 state; "cruise ship" does not include a noncommercial vessel operated by a state or 09 municipality, the United States, or a foreign government, including vessels operated 10 by the Alaska marine highway system; 11 (3) "department" means the Department of Revenue; 12 (4) "guided activity" means 13 (A) scenic and sightseeing transportation on land, air and 14 water, the predominant purpose of which is to provide recreational, 15 entertainment, and leisure-time opportunities during the course of the 16 transportation; in this subparagraph, "scenic and sightseeing transportation" 17 (i) includes transportation on cruise ships, buses, 18 trolleys, taxis, the Alaska Railroad or other trains, snowmobiles, 19 animals, carriages, aircraft, helicopters, hovercraft, balloons, aerial 20 tramways, parasails, hang-gliders, gliders, marine vessels, rafts, kayaks, 21 and charter fishing boats; 22 (ii) does not include transportation by common carrier if 23 the predominant purpose is to transport passengers from one destination 24 to another, or is another transportation service not predominately for 25 recreational entertainment and leisure-time opportunities, as designated 26 by the department by regulation; 27 (B) recreational activities that enable users to participate in 28 recreational activities or pursue amusement, hobby, and leisure-time interests 29 accompanied, directed, or led by or on behalf of the commercial provider; in 30 this subparagraph, "recreational activities" 31 (i) includes excursions involving hiking, walking,
01 mountaineering, horseback riding, climbing, sightseeing, camping, 02 skiing, sledding, dogsledding, snowshoeing, boating, rafting, kayaking, 03 flying, touring, fishing, or hunting; 04 (ii) does not include other activities designated by the 05 department by regulation; 06 (5) "person" means an individual, firm, partnership, joint venture, 07 limited liability company, government or military agency, association, corporation, 08 estate, trust, receiver, or any other group or combination of those entities or groups 09 acting as a unit; 10 (6) "sales price" means the total consideration for the tourism service; 11 "sales price" 12 (A) includes any fee, commission, or other consideration 13 derived by the seller of the tourism service; 14 (B) does not include refunds or other sales and excise taxes on 15 the tourism service; 16 (7) "seller" 17 (A) means a person engaged in the business of selling a tourism 18 service; 19 (B) does not include a person exempt from federal income tax 20 under 26 U.S.C. 501(c)(3), if the business is not an unrelated trade or business 21 that meets the standards of 26 U.S.C. 513; 22 (8) "tourism service" means a guided activity or a transient 23 accommodation; "tourism service" 24 (A) includes all services and goods that are bundled with the 25 guided activity or transient accommodation and sold as a unit to the user or 26 purchaser; 27 (B) does not include additional services and goods that the user 28 or purchaser may elect to purchase in addition to the guided activity or 29 transient accommodation; 30 (9) "transient accommodation" means a dwelling unit that is designed 31 and used for temporary overnight human occupancy and includes a cruise ship
01 stateroom, Alaska marine highway system stateroom, spaces designed for parking 02 recreational vehicles during occupancy of those vehicles, and a dwelling unit within a 03 motel, hotel, hostel, bed and breakfast, inn, or lodge; "transient accommodation" does 04 not include room and board provided by (A) an employer to an employee in one 05 location as a regular incidence of employment; or (B) a person that is not a 06 commercial provider; 07 (10) "user" means the individual who consumes the tourism service. 08 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 APPLICABILITY. (a) For a tourism service sold on or after the effective date of this 11 Act and before January 1, 2005, the taxes imposed by this Act apply only to the portion of the 12 tourism service that is for use on or after January 1, 2005. 13 (b) Except as provided in (a) of this section, the taxes imposed by this Act apply to 14 tourism services sold on or after January 1, 2005. 15 (c) In this section, "tourism service" has the meaning given in AS 43.51.990, enacted 16 by sec. 1 of this Act. 17 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).