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28th Legislature(2013-2014)

Bill Text 28th Legislature


00                              SENATE BILL NO. 5                                                                          
01 "An Act relating to the reporting and analysis of certain information relating to tax                                   
02 credits, exclusions, exemptions, waivers, and other tax expenditures; relating to bills                                 
03 creating tax expenditures; and relating to confidentiality and use of tax information."                                 
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
06 to read:                                                                                                                
07       SHORT TITLE. This Act may be known as the Tax Break Transparency Act.                                             
08    * Sec. 2. AS 24.08 is amended by adding a new section to read:                                                     
09            Sec. 24.08.038. Tax expenditure bills. The legislature shall include a                                     
10       statement of the rationale and purpose of a tax expenditure in a bill creating a tax                              
11       expenditure. In this section, "tax expenditure" has the meaning given in AS 43.05.090.                            
12    * Sec. 3. AS 24.20 is amended by adding a new section to read:                                                     
13            Sec. 24.20.232. Analysis of tax expenditures. (a) If publicly available                                    
14       information indicates the sum of tax expenditures of a specific type exceeds                                      
01       $1,000,000 in fiscal year 2012 or a succeeding fiscal year, the legislative finance                               
02       division shall analyze the use of the tax expenditure on the following schedule to assist                         
03       the legislature in determining whether the statute authorizing the tax expenditure                                
04       appears to be achieving its intended purpose:                                                                     
05                 (1)  tax expenditures existing on July 1, 2012, shall be analyzed once                                  
06       between July 1, 2012, and January 1, 2018, and before a delayed repeal of a tax                                   
07       expenditure;                                                                                                      
08                 (2)  a tax expenditure created after July 1, 2012, shall be analyzed after                              
09       it has been in effect for seven years or, if the statute authorizing the expenditure has a                        
10       delayed repeal date, one year before the effective date of the delayed repeal of the tax                          
11       expenditure.                                                                                                      
12            (b)  In this section, "tax expenditure" has the meaning given in AS 43.05.090.                               
13    * Sec. 4. AS 40.25.100(a) is amended to read:                                                                      
14            (a)  Information in the possession of the Department of Revenue that discloses                               
15       the particulars of the business or affairs of a taxpayer or other person is not a matter of                       
16       public record, except as provided in AS 43.05.090(d) and 43.05.230(i)                                         
17       [AS 43.05.230(i)] or for purposes of investigation and law enforcement. The                                       
18       information shall be kept confidential except when its production is required in an                               
19       official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or                            
20       court proceeding. These restrictions do not prohibit the publication of statistics                                
21       presented in a manner that prevents the identification of particular reports and items,                           
22       prohibit the publication of tax lists showing the names of taxpayers who are delinquent                           
23       and relevant information that may assist in the collection of delinquent taxes, or                                
24       prohibit the publication of records, proceedings, and decisions under AS 43.05.405 -                              
25       43.05.499.                                                                                                        
26    * Sec. 5. AS 43.05.090 is amended to read:                                                                         
27            Sec. 43.05.090. Preparation and publication of statistics. The department                                  
28       shall prepare and annually publish statistics of the revenues derived, and the revenues                       
29       lost in the form of tax expenditures, under the tax laws administered by it.                                  
30    * Sec. 6. AS 43.05.090 is amended by adding new subsections to read:                                               
31            (b)  The tax expenditure statistics must include                                                             
01                 (1)  the annual sum of tax expenditures for the prior fiscal year,                                      
02       separately calculated for each type of expenditure, and the total number of taxpayers                             
03       who benefitted from each type of expenditure;                                                                     
04                 (2)  an estimate of tax expenditures for the current fiscal year,                                       
05       separately calculated for each type of expenditure;                                                               
06                 (3)  an estimate of the public costs of administering the tax                                           
07       expenditures.                                                                                                     
08            (c)  The department shall annually transmit an electronic copy of the revenue                                
09       and tax expenditure report to each member of the legislature and make the report                                  
10       available to the public on the department's Internet website.                                                     
11            (d)  The department shall notify the legislative finance division when the sum                               
12       of tax expenditures of a specific type has exceeded $1,000,000 in fiscal year 2018 or a                           
13       succeeding fiscal year and provide the legislative finance division with the                                      
14       nonconfidential or, subject to the division's execution of a confidentiality agreement,                           
15       confidential information necessary to complete the analysis under AS 24.20.232.                                   
16            (e)  In this section, "tax expenditure" means a loss of state revenue resulting                              
17       from a tax credit, exclusion, waiver, or other reduction authorized by an express                                 
18       provision of state tax law; "tax expenditure" does not include a tax credit, exclusion,                           
19       waiver, or other reduction authorized under federal law adopted by reference under                                
20       AS 43.20.021, a tax deduction for an expenditure incurred in the ordinary course of a                             
21       trade or business, or a tax credit, exclusion, exemption, waiver, or other loss of a                              
22       person not subject to tax under this title.                                                                       
23    * Sec. 7. AS 43.05.230(a) is amended to read:                                                                      
24            (a)  It is unlawful for a current or former officer, employee, or agent of the                               
25       state to divulge the amount of income or the particulars set out or disclosed in a report                         
26       or return made under this title, except                                                                           
27                 (1)  in connection with official investigations or proceedings of the                                   
28       department, whether judicial or administrative, involving taxes due under this title;                             
29                 (2)  in connection with official investigations or proceedings of the                                   
30       child support enforcement agency, whether judicial or administrative, involving child                             
31       support obligations imposed or imposable under AS 25 or AS 47;                                                    
01                 (3)  as provided in AS 38.05.036 pertaining to audit functions of the                                   
02       Department of Natural Resources;                                                                                  
03                 (4)  as provided in AS 43.05.090(d);                                                                
04                 (5)  as provided in AS 43.05.405 - 43.05.499; and                                                   
05                 (6) [(5)]  as otherwise provided in this section or AS 43.55.890.                                   
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