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CS FOR SENATE BILL NO. 135(RES)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE SENATE RESOURCES COMMITTEE
Offered: 4/15/25
Referred: Finance
Sponsor(s): THE SENATE RULES COMMITTEE BY REQUEST OF THE JOINT LEGISLATIVE TASK
FORCE EVALUATING ALASKA'S SEAFOOD INDUSTRY
A BILL
FOR AN ACT ENTITLED
"An Act relating to the sharing of tax revenue from the fisheri es business tax and 1
fishery resource landing tax with municipalities; relating to m unicipal reports on the 2
shared tax revenue; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. The uncodified law of the State o f Alaska is amended by adding a new section 5
to read: 6
LEGISLATIVE INTENT. It is the intent of the legislature that a municipality use the 7
additional revenue distributed under this Act to help maintain and improve the municipality's 8
harbor facilities, if the municipality operates harbor facilities. 9
* Sec. 2. AS 43.75.130(a) is amended to read: 10
(a) Subject to appropriation by the legislature, and except [EXCEPT ] as 11
provided in (d) of this section, the commissioner shall pay 12
(1) to each unified municipality and to each city located in t he 13
unorganized borough, 60 [50] percent of the amount of tax revenue collected in the 14
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municipality from taxes levied under this chapter; 1
(2) to each city located within a borough, 35 [25] percent of the 2
amount of tax revenue collected in the city from taxes levied under this chapter; and 3
(3) to each borough 4
(A) 60 [50] percent of the amount of tax revenue collected in 5
the area of the borough outside cities from taxes levied under this chapter; and 6
(B) 35 [25] percent of the amount of tax revenue collected in 7
cities located within the borough from taxes levied under this chapter. 8
* Sec. 3. AS 43.75.130(a), as amended by sec. 2 of this Act, is amended to read: 9
(a) Subject to appropriation by the legislature, and except as provided in (d) of 10
this section, the commissioner shall pay 11
(1) to each unified municipality and to each city located in t he 12
unorganized borough, 50 [60] percent of the amount of tax revenue collected in the 13
municipality from taxes levied under this chapter; 14
(2) to each city located within a borough, 25 [35] percent of the 15
amount of tax revenue collected in the city from taxes levied under this chapter; and 16
(3) to each borough 17
(A) 50 [60] percent of the amount of tax revenue collected in 18
the area of the borough outside cities from taxes levied under this chapter; and 19
(B) 25 [35] percent of the amount of tax revenue collected in 20
cities located within the borough from taxes levied under this chapter. 21
* Sec. 4. AS 43.75.130(d) is amended to read: 22
(d) Notwithstanding the provi sions of (a)(2) and (a)(3)(B) of this section, and 23
subject to appropriation by the legislature, the commissioner shall pay 24
(1) to each city that is located in a borough incorporated aft er June 16, 25
1987, t h e f o l l o w i n g p e r c e n t a g e s o f t h e t a x r e v e n u e c o l l e c t e d i n t h e city from taxes 26
levied under this chapter: 27
(A) 55 [45] percent of the taxes collected during the calendar 28
year in which the borough is incorporated; 29
(B) 50 [40] percent of the taxes collected during the first 30
calendar year after the calendar year in which the borough is incorporated; 31
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(C) 45 [35] percent of the taxes collected during the second 1
calendar year after the calendar year in which the borough is incorporated; and 2
(D) 40 [30] percent of the taxes collected during the third 3
calendar year after the calendar year in which the borough is incorporated; and 4
(2) to each borough that is incorporated after June 16, 1987 , the 5
following percentages of the tax revenue collected in the citie s located within the 6
borough from taxes levied under this chapter: 7
(A) 7.5 [5] percent of the taxes collected during the calendar 8
year in which the borough is incorporated; 9
(B) 15 [10] percent of the taxes collected during the first 10
calendar year after the calendar year in which the borough is incorporated; 11
(C) 25 [15] percent of the taxes collected during the second 12
calendar year after the calendar year in which the borough is incorporated; and 13
(D) 30 [20] percent of the taxes collected during the third 14
calendar year after the calendar year in which the borough is incorporated. 15
* Sec. 5. AS 43.75.130(d), as amended by sec. 4 of this Act, is amended to read: 16
(d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 17
subject to appropriation by the legislature, the commissioner shall pay 18
(1) to each city that is located in a borough incorporated aft er June 16, 19
1987, the following percentages of the tax revenue collected in the city from taxes 20
levied under this chapter: 21
(A) 45 [55] percent of the taxes collected during the calendar 22
year in which the borough is incorporated; 23
(B) 40 [50] percent of the taxes collected during the first 24
calendar year after the calendar year in which the borough is incorporated; 25
(C) 35 [45] percent of the taxes collected during the second 26
calendar year after the calendar year in which the borough is incorporated; and 27
(D) 30 [40] percent of the taxes collected during the third 28
calendar year after the calendar year in which the borough is incorporated; and 29
(2) to each borough that is incorporated after June 16, 1987, the 30
following percentages of the tax revenue collected in the citie s located within the 31
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borough from taxes levied under this chapter: 1
(A) five [7.5] percent of the taxes collected during the calendar 2
year in which the borough is incorporated; 3
(B) 10 [15] percent of the taxes collected during the first 4
calendar year after the calendar year in which the borough is incorporated; 5
(C) 15 [25] percent of the taxes collected during the second 6
calendar year after the calendar year in which the borough is incorporated; and 7
(D) 20 [30] percent of the taxes collected during the third 8
calendar year after the calendar year in which the borough is incorporated. 9
* Sec. 6. AS 43.75.130 is amended by adding a new subsection to read: 10
(i) A municipality that receives a payment under this section shall use 10 11
percent of the funds received under this section to support or enhance commercial 12
fishing. 13
* Sec. 7. AS 43.75.137 is amended to read: 14
Sec. 43.75.137. Additional refund. Subject to appropriation by the 15
legislature [TO THE EXTENT THAT APPROPRIATIONS ARE AVAILABLE FOR 16
THE PURPOSE, AND NOTWITHSTANDING THE REQUIREMENT OF 17
AS 37.07.080(e) THAT APPROVAL OF THE OFFICE OF MANAGEMENT AND 18
BUDGET IS REQUIRED], an amount equal to 75 [50] percent of the tax revenue that 19
is collected under this chapter from fisheries businesses and that is not subject to 20
division with a municipality under AS 43.75.130 shall be paid by [TRANSMITTED 21
EACH FISCAL YEAR, WITHOUT THE APPROVAL OF THE OFFICE OF 22
MANAGEMENT AND BUDGET, BY THE DEPARTMENT TO] the Department of 23
Commerce, Community, and Economic Development [FOR DISBURSAL] t o eligible 24
municipalities under AS 29.60.450. 25
* Sec. 8. AS 43.75.137, as amended by sec. 7 of this Act, is amended to read: 26
Sec. 43.75.137. Additional refund. Subject to appropriation by the legislature, 27
an amount equal to 50 [75] percent of the tax revenue that is collected under this 28
chapter from fisheries businesses and that is not subject to division with a municipality 29
under AS 43.75.130 shall be paid by the Department of Commerce, Community, and 30
Economic Development to eligible municipalities under AS 29.60.450. 31
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* Sec. 9. AS 43.75 is amended by adding a new section to article 3 to read: 1
Sec. 43.75.150. Municipal reports to the legislature. (a) Except as provided 2
in (c) of this section, not more than 30 days after the conveni ng of each regular 3
legislative session, a municipalit y that receives tax revenue u nder AS 43.75.130 - 4
43.75.137 shall prepare and submit to the legislature a report that describes 5
(1) how those funds were used by the municipality in the previ ous 6
fiscal year; and 7
(2) any harbor maintenance or improvement projects that were f unded 8
in whole or in part by the tax revenue collected under AS 43.75 .130 - 43.75.137, if the 9
municipality operates a harbor. 10
(b) The report required under (a) of this section may be made jointly with the 11
report required under AS 43.77.060(f). 12
(c) A report is not required under this section if the total t a x r e v e n u e a 13
municipality receives under AS 43.75.130 - 43.75.137 is less than $10,000. 14
* Sec. 10. AS 43.77.060(a) is amended to read: 15
(a) Subject to appropriation by the legislature and except as provided in (b) of 16
this section, the commissioner shall pay to each 17
(1) unified municipality and to each city located in the unorg anized 18
borough 75 [, 50] percent of the amount of tax revenue collected from tax es levied 19
under this chapter on the fishery resource landed in the municipality and accounted for 20
under AS 43.77.050(b); 21
(2) city located within a borough 35 [, 25] percent of the amount of the 22
tax revenue collected from taxes levied under this chapter on f ishery resources landed 23
in the city and accounted for under AS 43.77.050(b); and 24
(3) borough 25
(A) 75 [50] percent of the amount of the tax revenue collected 26
from taxes levied under this chapter on fishery resources lande d in the area of 27
the borough outside cities and accounted for under AS 43.77.050(b); and 28
(B) 35 [25] percent of the amount of the tax revenue collected 29
from taxes levied under this cha pter on fishery resources lande d in cities 30
located within the borough and accounted for under AS 43.77.050(b). 31
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* Sec. 11. AS 43.77.060(a), as amended by sec. 10 of this Act, is amended to read: 1
(a) Subject to appropriation by the legislature and except as provided in (b) of 2
this section, the commissioner shall pay to each 3
(1) unified municipality and to each city located in the unorg anized 4
borough 50 [75] percent of the amount of ta x revenue collected from taxes l e v i e d 5
under this chapter on the fishery resource landed in the municipality and accounted for 6
under AS 43.77.050(b); 7
(2) city located within a borough 25 [35] percent of the amount of the 8
tax revenue collected from taxes levied under this chapter on f ishery resources landed 9
in the city and accounted for under AS 43.77.050(b); and 10
(3) borough 11
(A) 50 [75] percent of the amount of the tax revenue collected 12
from taxes levied under this chapter on fishery resources lande d in the area of 13
the borough outside cities and accounted for under AS 43.77.050(b); and 14
(B) 25 [35] percent of the amount of the tax revenue collected 15
from taxes levied under this cha pter on fishery resources lande d in cities 16
located within the borough and accounted for under AS 43.77.050(b). 17
* Sec. 12. AS 43.77.060(b) is amended to read: 18
(b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 19
subject to appropriation by the legislature, the commissioner shall pay to each 20
(1) city that is located in a borough incorporated after January 1, 1994, 21
the following percentages of the tax revenue collected from tax es levied under this 22
chapter on fishery resources landed in the city and accounted f or under 23
AS 43.77.050(b): 24
(A) 50 [45] percent of the tax revenue collected during the 25
calendar year in which the borough is incorporated; 26
(B) 50 [40] percent of the tax revenue collected during the first 27
calendar year after the calendar year in which the borough is incorporated; 28
(C) 50 [35] percent of the tax revenue collected during the 29
second calendar year after the cal endar year in which the borou gh is 30
incorporated; and 31
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(D) 50 [30] percent of the tax revenue collected during the third 1
calendar year after the calendar year in which the borough is incorporated; and 2
(2) borough that is incorporat ed after January 1, 1994, the fo llowing 3
percentages of the tax revenue collected from taxes levied unde r this chapter on 4
fishery resources landed in the cities located within the borou gh and accounted for 5
under AS 43.77.050(b): 6
(A) 10 [FIVE] percent of the tax revenue collected during the 7
calendar year in which the borough is incorporated; 8
(B) 20 [10] percent of the tax revenue collected during the first 9
calendar year after the calendar year in which the borough is incorporated; 10
(C) 25 [15] percent of the tax revenue collected during the 11
second calendar year after the cal endar year in which the borou gh is 12
incorporated; and 13
(D) 35 [20] percent of the tax revenue collected during the third 14
calendar year after the calendar year in which the borough is incorporated. 15
* Sec. 13. AS 43.77.060(b), as amended by sec. 12 of this Act, is amended to read: 16
(b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and 17
subject to appropriation by the legislature, the commissioner shall pay to each 18
(1) city that is located in a borough incorporated after January 1, 1994, 19
the following percentages of the tax revenue collected from tax es levied under this 20
chapter on fishery resources landed in the city and accounted f or under 21
AS 43.77.050(b): 22
(A) 45 [50] percent of the tax revenue collected during the 23
calendar year in which the borough is incorporated; 24
(B) 40 [50] percent of the tax revenue collected during the first 25
calendar year after the calendar year in which the borough is incorporated; 26
(C) 35 [50] percent of the tax revenue collected during the 27
second calendar year after the cal endar year in which the borou gh is 28
incorporated; and 29
(D) 30 [50] percent of the tax revenue collected during the third 30
calendar year after the calendar year in which the borough is incorporated; and 31
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(2) borough that is incorporat ed after January 1, 1994, the fo llowing 1
percentages of the tax revenue collected from taxes levied unde r this chapter on 2
fishery resources landed in the cities located within the borou gh and accounted for 3
under AS 43.77.050(b): 4
(A) five [10] percent of the tax revenue collected during the 5
calendar year in which the borough is incorporated; 6
(B) 10 [20] percent of the tax revenue collected during the first 7
calendar year after the calendar year in which the borough is incorporated; 8
(C) 15 [25] percent of the tax revenue collected during the 9
second calendar year after the cal endar year in which the borou gh is 10
incorporated; and 11
(D) 20 [35] percent of the tax revenue collected during the third 12
calendar year after the calendar year in which the borough is incorporated. 13
* Sec. 14. AS 43.77.060(d) is amended to read: 14
(d) Subject to appropriation by the legislature [TO THE EXTENT THAT 15
APPROPRIATIONS ARE AVAILABLE FOR THE PURPOSE, AND 16
NOTWITHSTANDING THE REQUIREMENT OF AS 37.07.080(e) THAT 17
APPROVAL OF THE OFFICE OF MANAGEMENT AND BUDGET IS 18
REQUIRED], an amount equal to 75 [50] percent of the tax r evenue that is collected 19
under this chapter and that is not subject to division with a municipality under (a) - (c) 20
of this section shall be paid by [TRANSMITTED EACH FISCAL YEAR, 21
WITHOUT THE APPROVAL OF THE OFFICE OF MANAGEMENT AND 22
BUDGET, BY THE DEPARTMENT TO] the Department of Commerce, Community, 23
and Economic Development [FOR DIS BURSAL] to eligible municipali ties under 24
AS 29.60.450. 25
* Sec. 15. AS 43.77.060(d), as amended by sec. 14 of this Act, is amended to read: 26
(d) Subject to appropriation by t he legislature, an amount equ al to 50 [ 7 5 ] 27
percent of the tax revenue that is collected under this chapter and that is not subject to 28
division with a municipality under (a) - (c) of this section sh all be paid by the 29
Department of Commerce, Communi ty, and Economic Development to eligible 30
municipalities under AS 29.60.450. 31
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* Sec. 16. AS 43.77.060 is amended by adding new subsections to read: 1
(f) Except as provided in (c) of this section, not more than 3 0 days after the 2
convening of each regular legislative session, a municipality t hat receives tax revenue 3
under this section shall prepare and submit to the legislature a report that describes 4
how those funds were used by the municipality in the previous f iscal year and that 5
details any harbor maintenance or improvement projects that wer e funded in whole or 6
in part by that tax revenue, if the municipality operates harbo r facilities. The report 7
may be made jointly with the report required under AS 43.75.150. 8
(g) A report is not required under this section if the total t ax revenue a 9
municipality receives under this section is less than $10,000. 10
(h) A municipality that receives a payment under this section shall use 10 11
percent of the funds received under this section to support or enhance commercial 12
fishing. 13
* Sec. 17. AS 43.75.130(i) and AS 43.77.060(g) are repealed. 14
* Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 15
read: 16
APPLICABILITY. This Act applies to tax revenue collected by the Department of 17
Revenue under AS 43.75 and AS 43.77 for the 2025 tax year and later tax years. 18
* Sec. 19. Sections 9 and 16 of this Act take effect February 1, 2026. 19
* Sec. 20. Sections 3, 5, 8, 11, 13, 15, and 17 of this Act take effect July 1, 2035. 20
* Sec. 21. Except as provided in secs. 19 and 20 of this Act, this Act tak es effect January 1, 21
2026. 22