Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Measure Seeks To Protect Alaska Fishermen From I.R.S. Permit Seizures

For Immediate Release: April 8, 1997 Contact: Rep. Ivan Ivan (907) 465-4942

JUNEAU - Protecting Alaska fishermen's limited entry permits from Internal Revenue Service (I.R.S) takings is the purpose of legislation passed by the Alaska State House of Representatives by a 34-4 vote.

HB 123, sponsored by Representative Ivan M. Ivan of Akiak, extends the termination date of the tax obligation loan program within the Commercial Fishing Revolving Loan Program for three years.

"Without this legislation, this program will end on May 26, 1997. Thus far, over 220 loans have been made to fishermen who otherwise could have lost their limited entry permits through actions taken by the I.R.S. to seize permits for payment of delinquent income taxes," said Ivan.

"Several state agencies and private parties have worked hard to keep limited entry permits in the state's hands and out of control of the I.R.S. The state has a contract with the I.R.S. that requires reasonable notice before a forced sale. The tax obligation loan program is one of the tools that helps keep the permit in the state and enable fishermen to continue working," said Ivan.

The loans are fully secured by the Division of Investments. General funds have not been used for the commercial fishing revolving loan fund since 1985. The division loans money it receives back from payments which amounted to about $15 million last year.

"The legislature and the state have taken great strides in providing employment opportunities to our residents. This program provides one of the opportunities to keep our residents in the work force and allow them to continue working," said Ivan.

The bill now moves to the Senate for consideration

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Broadcast Note: An audio actuality is available by calling 1-800-478-6540.
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