Legislature(2015 - 2016)

2016-05-27 House Journal

Full Journal pdf

2016-05-27                     House Journal                      Page 2988
HB 4005                                                                                                                       
HOUSE BILL NO. 4005 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
     "An Act relating to the mining license tax; relating to the                                                                
     exploration incentive credit; relating to mining license application,                                                      
     renewal, and fees; and providing for an effective date."                                                                   
was read the first time and referred to the Finance Committee.                                                                  
The following fiscal note(s) apply:                                                                                             
1.  Fiscal, Dept. of Revenue                                                                                                    

2016-05-27                     House Journal                      Page 2989
The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
"Dear Speaker Chenault:                                                                                                         
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to exemptions from the                                                          
mining license tax; the mining license tax rate; and mining license                                                             
application, renewal, and fees and removing the application of the                                                              
exploration incentive credit to mining production royalty payments.                                                             
The bill would amend the exemption from paying the mining license                                                               
tax that currently applies to operations for three and one-half years                                                           
after production begins. The exemption would remain, but for two                                                                
The bill also would increase the mining license tax rate from seven                                                             
percent to nine percent for a portion of net income in excess of                                                                
$100,000. The new tax rate would apply to the first taxable year                                                                
(which may be a fiscal year or a calendar year) beginning after the                                                             
effective date of the bill.                                                                                                     
Last the bill would remove the application of the exploration incentive                                                         
credit to mining production royalty payable under AS 38.05.135 -                                                                
38.05.160 and AS 38.05.212 for production from a mining operation.                                                              
I urge your prompt and favorable action on this measure.                                                                        
Bill Walker