JUNEAU, Alaska — April 24, 2014 — The Alaska State Legislature unanimously passed Senate Bill 71, sponsored by Senator Peter Micciche (R-Soldotna). SB71 does three primary things for commercial fishing families in Alaska. The bill provides a fair system for fishermen to use to pay landing taxes to the State, it continues and expands value-added tax credits for fishermen and processors always looking to adapt to a rapidly-evolving seafood marketplace and it provides credits for upgrades likely to result in a greater proportion of Alaskans being employed in the seafood industry.
The bill repairs glitches in the landing resource tax statutes and regulations which cause the payment of unfair penalties and interest by well-intentioned commercial fishermen. Currently the resource landing tax is due March 31st. However, the statewide average fish price report calculated by the Department of Fish and Game is not always published by that date. SB71 aligns the due date of the tax with the date that the report is released.
“As a commercial fisherman and a Senator from a coastal district, I understand the confusion and frustration caused by the current statutes,” said Senator Micciche. “This measure will allow fishing families to do what they do best -spend time fishing and not wasting time on inefficient and unfair government regulations that provide no value.”
The current statute also includes provisions for equal quarterly payments. Many Alaska fishermen and fisheries only operate in one of the four quarters. Considering the seasonal nature of many fisheries and the variability in harvest, it is virtually impossible for resource landing taxpayers to accurately predict their full year’s harvest for equal payments. With the passage of this legislation, fishermen can choose from three different methods to make their estimated landing tax payments in better alignment with their particular fishery.
“SB71 allows fishermen to pay their landing taxes in accordance with a schedule that coincides with the quarters when the actual fishing occurred. It provides the same landing tax revenue quantity to the state, yet eliminates unfair fees and fines for lateness that was beyond the control of Alaska’s fishermen,” said Senator Micciche.
The bill also extends and expands the Alaska Salmon Product Development Tax Credit that is widely credited as a major factor of significantly increasing the commercial value of Alaska salmon over the past few years. There have been positive trends since this bill was originally enacted in 2003, including product diversity, increased state revenues from the fisheries business tax and increased permit prices.
Read the full story at Alaska Business Monthly