HB 422: "An Act relating to a corporation income tax credit for contributions to a qualified trade association awarded a contract by the Department of Commerce, Community, and Economic Development for planning and executing a destination tourism marketing campaign made by a person that derives income from the sale of goods or services to visitors to the state; relating to the excise tax on passengers traveling on commercial passenger vessels providing overnight accommodations in the state's marine waters; and providing for an effective date."
00 HOUSE BILL NO. 422 01 "An Act relating to a corporation income tax credit for contributions to a qualified 02 trade association awarded a contract by the Department of Commerce, Community, and 03 Economic Development for planning and executing a destination tourism marketing 04 campaign made by a person that derives income from the sale of goods or services to 05 visitors to the state; relating to the excise tax on passengers traveling on commercial 06 passenger vessels providing overnight accommodations in the state's marine waters; and 07 providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 43.20 is amended by adding a new section to article 1 to read: 10 Sec. 43.20.047. Tourism marketing tax credit. (a) A person that derives 11 income from the sale of goods and services to visitors to the state by providing 12 overnight accommodations, sightseeing tours, recreational activities, attractions, air, 13 ground, or marine transportation, or passenger or recreational vehicle rentals is entitled
01 to a credit against the tax due under this chapter for a cash contribution made after 02 December 31, 2009, that 03 (1) is accepted by the qualified trade association; 04 (2) is used for the destination tourism marketing campaign that was 05 planned and executed under the contract issued under AS 44.33.125(a); 06 (3) is not used to provide the person making the contribution with 07 control over the usage of their contribution to confer a direct benefit to the person; and 08 (4) does not exceed the maximum amount of credit for the contribution 09 determined under (b) and (c) of this section. 10 (b) The total amount of cash contributions made by all persons to the qualified 11 trade association in a calendar year that are eligible for a credit under this section may 12 not exceed the amount described in (c) of this section. When the total amount of cash 13 contributions equals or exceeds the amount described in (c) of this section, the 14 qualified trade association shall advise contributors and the department that additional 15 contributions may not qualify for the tax credit for that calendar year. A contribution 16 for which a credit was not granted under this subsection may not be taken as a credit in 17 another calendar year. 18 (c) The total amount of cash contributions received by the qualified trade 19 association that is eligible for a tax credit for calendar year 2010 may not exceed 20 $20,000,000. The total amount of cash contributions received by the qualified trade 21 association that is eligible for a tax credit for a calendar year after 2010 shall be 22 determined by the department based on the percentage of change in the amount of tax 23 collected under AS 43.52.010 - 43.52.099 (vehicle rental taxes) during the two 24 previous fiscal years. The department shall publish its determination by December 1 of 25 the year before the year for which the limitation is applicable. 26 (d) A credit or portion of a credit under this section may not be used to reduce 27 to below zero a person's total tax liability under this chapter for a calendar year. Any 28 unused credit or portion of a credit not used under this section may not be applied in a 29 subsequent calendar year. 30 (e) A person may not claim a credit under this section for a contribution that 31 was deducted when determining the tax under AS 43.20.011(e).
01 (f) In this section, "qualified trade association" means the qualified trade 02 association that is awarded a contract under AS 44.33.125(a). 03 * Sec. 2. AS 43.52.200 is amended to read: 04 Sec. 43.52.200. Levy of excise tax on overnight accommodations on 05 commercial passenger vessels. There is imposed an excise tax on passengers 06 traveling [TRAVEL] on commercial passenger vessels providing overnight 07 accommodations that anchor or moor in the state's marine water with the intent to 08 allow passengers to embark or disembark. 09 * Sec. 3. AS 43.52.210 is amended to read: 10 Sec. 43.52.210. Rate of tax. The tax imposed by AS 43.52.200 - 43.52.295 is 11 levied at a rate of $34.50 [$46] a passenger per voyage. 12 * Sec. 4. AS 43.52.230(a) is amended to read: 13 (a) The proceeds from the tax imposed under AS 43.52.200 - 43.52.295 [ON 14 TRAVEL ON COMMERCIAL PASSENGER VESSELS PROVIDING 15 OVERNIGHT ACCOMMODATIONS IN THE STATE'S MARINE WATER] shall 16 be deposited in a special "commercial vessel passenger tax account" in the general 17 fund. The legislature may appropriate money from this account for the purposes 18 described in (b) [AND (c)] of this section, for state-owned port and harbor facilities, 19 other services and infrastructure to properly provide for commercial passenger 20 vessel or passenger [WATERCRAFT] visits, to enhance the safety and efficiency of 21 interstate and foreign commerce, and such other lawful purposes as determined by the 22 legislature. 23 * Sec. 5. AS 43.52.230(b) is amended to read: 24 (b) For each voyage of a commercial passenger vessel providing overnight 25 accommodations, the commissioner shall identify the first five ports of call in the state 26 and the number of passengers on board the vessel at each port of call. Subject to 27 appropriation by the legislature, the commissioner shall distribute to each port of call 28 $5 per passenger of the tax revenue collected from the tax imposed [LEVIED] under 29 AS 43.52.200 - 43.52.295. If the port of call is a city located within a borough not 30 otherwise unified with the borough, the commissioner shall, subject to appropriation 31 by the legislature, distribute $2.50 per passenger to the city and $2.50 to the borough.
01 Each port of call receiving funds under this section shall use the funds in a manner 02 calculated to improve port and harbor facilities and other services and infrastructure 03 to properly provide for commercial passenger vessel or passenger [WATERCRAFT] 04 visits and to enhance the safety and efficiency of interstate and foreign commerce. 05 * Sec. 6. AS 43.52.250 is amended by adding new subsections to read: 06 (b) The tax imposed by AS 43.52.200 - 43.52.295 shall be reduced by the total 07 amount of a tax on a passenger traveling on commercial passenger vessels imposed on 08 the passenger by a municipality. 09 (c) The tax reduction under (b) of this subsection only applies to taxes 10 imposed by a municipality that did not elect to receive funds under AS 43.52.200 - 11 43.52.295 by December 17, 2007. 12 (d) The tax reduction under (b) of this section may not exceed 50 percent of 13 the tax rate levied under AS 43.52.210. 14 * Sec. 7. AS 43.52 is amended to add a new section to read: 15 Sec. 43.52.260. Periodic report. The Department of Commerce, Community, 16 and Economic Development shall prepare and submit to the governor, the legislature, 17 and the public a report every three years that 18 (1) addresses the projected needs of communities to safely and 19 efficiently host passengers that pay taxes under AS 43.52.200 - 43.52.295; and 20 (2) summarizes the extent to which appropriations of the proceeds of 21 the tax have been used to defray the needs described in (1) of this subsection. 22 * Sec. 8. AS 43.52.295(4) is amended to read: 23 (4) "voyage" means any trip or itinerary lasting more than 72 hours in 24 the state's marine waters. 25 * Sec. 9. AS 43.52.230(c) is repealed. 26 * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).