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Port and Harbor funding assistance through shared fish taxes

Port and Harbor funding assistance through shared fish taxes . October 11, 2011 Prepared by the Office of Rep. Seaton. Well maintained Port and Harbor facilities are critical to the economic health of communities. The ownership transfer of Harbors from the State to Municipalities has.

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Port and Harbor funding assistance through shared fish taxes

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  1. Port and Harbor funding assistance through shared fish taxes October 11, 2011 Prepared by the Office of Rep. Seaton
  2. Well maintained Port and Harbor facilities are critical to the economic health of communities
  3. The ownership transfer of Harbors from the State to Municipalities has
  4. HB 184 HB 184 would increase the shared portion of the Fisheries Business Tax and Fisheries Landing Tax from 50% to 75% with the intent that the shared funds will help with port and harbor maintenance. An Excerpt from the Sponsor Statement of HB 184…. “Over the past 20 years the State has been divesting itself of expensive port and harbor infrastructure. This real estate has transferred to municipalities and boroughs. The state attempted to make sure that the transferred ports and harbors were in good shape when they transferred. In many cases the transfer took much more time than expected so the money allocated for deferred maintenance was not enough to cover the required repairs. Many ports and harbors which are the support infrastructure for our commercial fisheries are rundown and in need of major maintenance if not complete rebuilds. The additional share of the fisheries taxes will not solve this problem but will help maintain and improve the infrastructure used not only by our commercial fishermen but also by our sports and leisure residents.” AS 29.60.450 (c) “A municipality that receives a tax allocation under this section shall use the tax allocation to help reduce the effect of fisheries business activities on the municipality, which may include the expenses of any municipal service.”
  5. Alaska Statutes provide that a percentage of revenue collected from certain taxes and license fees shall be shared with municipalities in Alaska Aviation Motor Fuel Tax Commercial Passenger Vessel Tax Electric Cooperative Tax Fisheries Business Tax Fisheries Resource Landing Tax Telephone Cooperative Tax
  6. Fisheries Business Tax(AS 43.75)“Raw Fish Tax”Alaska’s Oldest Tax est. 1899Paid by fisheries businesses and persons who process fisheries resources in or export unprocessed fisheries resources from AlaskaTax Rate – from 1% to 5% FY 2010 Total = $32 million
  7. Fishery Resource Landing Tax(AS 43.77)Established 1993On Fisheries resources processed outside and first landed in Alaska Tax Rate from 1% - 3 %FY 2010 Total = $12.5 Million
  8. Fish Tax Sharing 50% to State Treasury 50% back to impacted Cities, Boroughs, and Fisheries Management Areas
  9. Processing Activity Inside Municipality 50 percent of tax collected within an incorporated city or organized borough in which the processing took place. If an incorporated city is within an organized borough, the state divides the 50 percent shareable amount equally between the incorporated city and the organized borough.
  10. Processing Activity Outside Municipality 50 percent of tax collected from processing activities outside of an incorporated city or an organized borough are distributed through an allocation program administered by the Department of Commerce, Community and Economic Development. FY 10:  SFBT $1,635,638; FRLT $1,725,481 FY 11:  SFBT $1,686,964; FRLT $752,016 FY 12:  SFBT $2,153,491; FRLT $1,252,767
  11. Exported/Unprocessed Fisheries Business Tax paid on fresh fish exported out of state unprocessed – troll dressed Salmon, gutted and gilled Halibut, live Crab, Geoduck etc. 50% is shared through an allocation program administered by the Department of Commerce, Community and Economic Development which Divides the funding statewide between different Fisheries Management Areas proportionate to the poundage of fish processed in each FMA HB 184 would direct the share to the localities where the fish was landed.
  12. DCCED fresh fish tax sharing example FY04 Total tax = $1,487, 532 50% to DCCED = $743,766 $47,070 – Southern Southeast 50% to State = $743,766 $48,070 Northern Southeast $54,905 Other $29,790 Kenai Peninsula $53,773 Kodiak $510,359 Alaska Peninsula
  13. If the 50% tax share on fresh fish sent out of state unprocessed is distributed directly to the port where it was landed FY 04 Example 50% to DCCED = $743,766 $86,716 Southern Southeast $146,074 Northern Southeast $29,379 Other $308,080 Kenai Peninsula $105,512 Kodiak $68,007 Alaska Peninsula
  14. HB 184 Increase the fish tax share to boroughs, cities, and communities to help with port and harbor maintenance FY 10 total fish tax = $44.5 million Current split @ 50%/50% = $22 million to state, $22 million to localities Proposed split @ 25%/75% = $11 million to state, $33 million to localities Exported Unprocessed fish tax shared with area where the fish was landed
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