Alaska State Legislature
News from the House Majority

Jerry Ritter, House Majority Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Bill's Passage Removes "Chilling Effects" of New Tax Burden

House Acts to Keep Alaska Open for Business

For Immediate Release April 8, 1998 Contact: Rep. Norman Rokeberg at (907) 465-4954.

Juneau -- The Alaska House of Representatives Wednesday passed House Bill 472, which alleviates the effects of a February decision by the Alaska Supreme Court that the Alaska Corporation New Income Tax (ANITA) applies to the income of foreign flagged ships and aircraft bringing goods and passengers to and from Alaska."

"This new tax burden would have a chilling effect on commercial development, international trade, and job creation in this state," said Representative Norman Rokeberg (R-Anchorage), Chairman of the House Labor and Commerce Committee, which sponsored HB 472. "It will slam the door on the myth that 'Alaska is open for business.' If the Department of Revenue implements this new tax, Alaska would be the only state to have such a tax," Rokeberg said.

"We must have competitive shipping rates for Alaska's exports. That means fair and equitable taxation, not double taxation," said Speaker of the House Gail Phillips (R-Homer). "All businesses in Alaska would be either directly taxed or subject to foreign retaliation or secondary taxation without this bill, and that would mean higher prices for everything and everyone," Phillips said.

"This tax also flies in the face of several international agreements, including the recently negotiated bilateral agreement with Japan expanding air service between Alaska and Japan," Rokeberg said. "There is a very real possibility of international retaliation that could, ultimately, affect all U.S. Businesses, meaning consumers will be paying more for imported goods and getting less for their money," Rokeberg said.

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Broadcasters note: Comments are available on the House Majority Actuality Line at (800) 478-6540.
= Norman Rokeberg, 64 K = Gail Phillips, 90 K