LEGAL SERVICES
DIVISION OF LEGAL AND RESEARCH SERVICES
LEGISLATIVE AFFAIRS AGENCY
STATE OF ALASKA

(907) 465-3867 or 465-2450
FAX (907) 465-2029 130 Seward Street, Suite 409
Mail Stop 3101 Juneau, Alaska 99801-2105

M E M O R A N D U M
January 30, 1997

Subject: CSHB 43 (Finance), relating to vehicle registration, municipal taxation of vehicles, and emission control inspection fees for vehicles -- sectional analysis (Work Order No. 20-LS0254\H)

To: Representative Eldon Mulder, Attn: Tim Sullivan

From: Jack Chenoweth, Legislative Counsel

The bill makes a series of changes to laws relating to taxes and fees imposed on vehicles.

Bill Section 1 makes amendments to AS 28.10.108(f) to clarify what is required by way of the registration of motor vehicles used for commercial purposes when they are to be registered on an annual basis. Provisions of current law allow annual registration at the request of the vehicle owner and with payment of the annual registration fee due the state. Under the proposed additions, annual registration would require compliance with two additional provisions--payment of the appropriate proportions of the municipally-levied vehicle registration tax and, if applicable, the biennial emission control inspection fee.

Bill Section 2 make a conforming change to AS 28.10.421(h) so that the rates set out for annual registration fees are made applicable to "vehicles used for commercial purposes" and are not limited to "rental motor vehicles." (A definition of "commercial purposes" is offered at AS 28.40.100(a)(3).)

AS 28.10.431(b) sets out the tax rates to be applied when a municipality levies a biennial motor vehicle registration tax. Bill section 4 adds a new bill section, AS 28.10.431(1), setting out a municipally-levied registration tax rate table for the tax when it is levied on an annual basis. Bill section 3 makes a necessary conforming change permitting municipalities to increase or decrease the municipality-levied registration tax that is annually levied (as they may now do for the tax when it is levied on a biennial basis).

Bill section 5 specifically addresses the authority of a municipality to take advantage of the annual municipal registration tax provisions added by bill section 4. It authorizes collection of the annual tax on vehicles used for commercial purposes to those vehicles already registered during the period that began on January 1, 1997 and that will end on the effective date of the Act.

Bill section 6 makes the entirety of this Act retroactive to January 1, 1997.

Bill section 7 gives the measure an immediate effective date. This immediate effective date provision requires a two-thirds vote to be effective.

JBC:jdr
97-064.jdr