Alert The Tax Division offices will be closed on Friday, November 24 for a mandatory furlough day and will reopen Monday, November 27. Revenue Online will remain available to conduct business. Should you need assistance during this time, please call the mainline of the respective office location: Anchorage at 907. 269-6620 or Juneau at 907.465.2320, and leave a message.


Fishery Resource Landing Tax
2016 Annual Report


Fishery Resource Landing Tax Reports
End Year



AS 43.77

Description

Alaska levies a fishery resource landing tax on fishery resources processed outside of and first landed in Alaska, based on the unprocessed value of the resource. The unprocessed value is determined by multiplying a statewide average price per pound (derived from Alaska Department of Fish and Game data) by the unprocessed weight.

The Department of Revenue’s Tax Division collects the fishery resource landing tax primarily from factory trawlers and floating processors that process fishery resources outside the state’s 3-mile limit and bring their products into Alaska for transshipment.

Rate

Tax rates are based on whether the resource is classified as “established” or “developing” by the Alaska Department of Fish and Game, and are based on the unprocessed value of the fishery resource. The rate for established fisheries is 3% and the rate for developing fisheries is 1%.

Returns

Taxpayers file returns and pay tax on a calendar-year basis with a due date of March 31 of the following year. Taxpayers are required to make quarterly estimated tax payments that are due on the last day of each calendar quarter.

The division grants an automatic extension to file the landing return if it does not provide statewide average prices to taxpayers at least 30 days prior to the due date. If the extension applies, the due date is the last day of the month following the month in which the division issues statewide average prices.

Exemptions

Unprocessed fishery resources landed in the state are exempt from the fishery resource landing tax, but may be subject to the fisheries business tax.

Credits

The following are available for use against the liability of this specific tax: Education, Scholarship Contributions, CDQ, and other tax credits.

For specific information concerning these credits, see the Description of Credits section.

Disposition of Revenue

The division deposits all revenue from the fishery resource landing tax into the General Fund. The Alaska Legislature may appropriate revenue from the tax for revenue sharing as described below:

Landings Inside a Municipality – The division shares 50% of taxes from landings within a municipality with the respective municipalities in which the landings occurred. If a municipality is within a borough, the division divides the 50% shareable amount between the municipality and borough.

Landings Outside a Municipality – The division shares 50% of the taxes from landings outside a municipality (unorganized borough) through an allocation program administered by the Alaska Department of Commerce, Community and Economic Development.

History

1993 – The Legislature enacted the fishery resource landing tax effective January 1994. The rate was 3.3% of the unprocessed value of the resource. The Department of Revenue adopted regulations regarding administration of the tax, effective April 1994.

1994 – The American Factory Trawler Association (AFTA) filed litigation challenging the constitutionality of the landing tax.

1995 – The Alaska Supreme Court rejected AFTA’s request based on AFTA’s failure to exhaust administrative remedies with the Department of Revenue.

1996 – The landing tax was restructured to mirror the fishery business tax program. The Legislature revised the tax rate to 3% for established species and 1% for developing species. The 0.3% portion of the previous 3.3% tax rate was incorporated into seafood marketing assessment statutes (AS 16.51). The Legislature also amended the landing tax statutes to provide for tax credits for education and A.W. “Winn” Brindle Scholarship contributions. All changes were retroactive to January 1994, the inception date of the landing tax.

1997 – AFTA dismissed its challenge to the landing tax and in June, and the state issued a formal hearing decision upholding the constitutionality of the tax. Shared tax amounts from calendar year 1994 and 1995 returns, previously held in escrow, were released to municipalities.

1999 – The American Fisheries Act (P.L. 105-277) required a fishery cooperative to execute a contract with each cooperative member that obligated the member to make a payment to the state for pollock harvested in the Alaska pollock fishery that are not landed in Alaska. AS 43.77.015 required that those payments are treated as if they were landing taxes.

2001 – The Legislature amended the landing tax statutes to require the quarterly payment of estimated fishery resource landing taxes, effective calendar year 2002.

2002 – The Legislature authorized credits of up to 50% for contributions of not more than $100,000 and 75% of the next $100,000 in contributions made to the Alaska Veterans’ Memorial Endowment Fund. The tax credit expired July 1, 2003.

2008 – The Legislature amended the Education Credit provisions to include cash contributions accepted for secondary-level vocational courses and programs by a school district in Alaska and by a state-operated vocational technical education and training school.

2010 – The Legislature amended the Education Credit by increasing the maximum credit allowed from $150,000 to $5 million effective Jan. 1, 2011. In addition, the Legislature expanded contributions eligible for the credit to include contributions made for construction and maintenance of facilities by state-operated vocational education schools and two- or four-year colleges. The increase in the credit from $150,000 to $5 million expires Dec. 31, 2013. The maximum credit allowed was to revert to $150,000 on Jan. 1, 2014. The date was extended in 2011 ( below).

2011 – The Legislature enacted legislation extending the date that the $5 million annual Education Credit limit expires from Jan. 1, 2014, to Jan. 1, 2021. It is then scheduled to return to $150,000. In addition, the Legislature expanded contributions eligible for the credit to include contributions made after June 30, 2011, to annual intercollegiate sports tournaments, Alaska Native cultural or heritage programs for public school staff and students, and a facility in the state that qualifies as a coastal ecosystem learning center under the Coastal American Partnership.

2014 – The Legislature passed House Bill 278 (CH 15 SLA 14) that further expanded qualifying Education Tax Credits to include cash contributions to a public or private nonprofit elementary or secondary school in the state, a nonprofit regional training center recognized by the Alaska Department of Labor and Workforce Development, or an apprenticeship program in the state that is registered with the U.S. Department of Labor under 29 U.S.C. 50-50b for direct instruction, research, and educational support purposes. In addition, tax credits are available for cash contributions accepted for a facility by a public or private nonprofit elementary or secondary school in the state, funding for a scholarship awarded by a nonprofit organization to a dual-credit student for certain educational expenses, for a residential school in the state approved by the Alaska Department of Education and Early Development, or certain qualified childhood early learning and development programs. Tax credits are also available for cash contributions for science, technology, engineering and math (STEM) programs by a nonprofit agency or school district for school staff and for students in grades kindergarten through 12 in the state and for the operation of a nonprofit organization dedicated to providing educational opportunities that foster public service leadership for future generations of residents of the state.

HB 306 (CH 69 SLA 14) amended AS 43.77 and repealed certain existing tax credits (Winn Brindle Scholarship Credit, Education Credit, CDQ Credit, and Film Production Credit) over the next five to six years if the Legislature does not reauthorize the credits before their sunset dates.

The Legislature passed Senate Bill 71 (CH 69 SLA 14) that changed the due date for the Fishery Resource Landing Tax from a set date of April 1 to 30 days after the division publishes the statewide average prices.

2015 – The Legislature passed SB 39 that finalized the repeal of the Film Production Credit.



Click here for data with additional years.

  Collections Summary

Fiscal Year

2016 2015 2014 2013

   Tax Collections

$9,765,515 $8,376,628 $12,583,645 $13,381,669

   Shared with Municipalities

(8,239,986) (3,125,677) (5,148,589) (7,016,532)

   DCCED Municipal Allocation

(1,188,666) (109,137) (302,237) (826,348)

   Tax Retained by State

$336,863 $5,141,814 $7,132,819 $5,538,789


  Filing Information

Fiscal Year

2016 2015 2014 2013

   Number of Returns

66 99 78 65

   Number of Taxpayers

55 68 63 50





Fishery Resource Landing Tax Credits


CDQ – AS 43.77.040 – Taxpayers that harvest a fishery resource under a community development quota (CDQ) may claim a credit of up to 45.45% of fishery resource landing taxes for contributions to Alaska nonprofit corporations that are dedicated to fisheries industry-related expenditures.





Education – AS 43.20.014, 43.55.019, 43.56.018, 43.65.018, 43.75.018, 43.77.045 – Taxpayers are allowed a non-transferrable, non-refundable credit for cash contributions to Alaska universities and accredited nonprofit Alaska two- or four-year colleges for facilities, direct instruction, research and educational support purposes.

The tax credit can also be taken for donations to a school district or state-operated vocational technical education and training school for vocational education courses, programs and facilities. Donations for Alaska Native cultural or heritage programs for public school staff and students, and a facility in the state that qualifies as a coastal ecosystem learning center under the Coastal American Partnership also qualify. Contributions to the Alaska Higher Education Investment Fund established in 2012 qualify.

The credit is 50% of the first $100,000, 100% of the contribution over $100,000 and up to $300,000, and 50% of the remaining amount over $300,000. The total allowable credit per year for all affiliated taxpayers may not exceed $5 million.

Qualifying Education Tax Credits include cash contributions by taxpayers to a public or private nonprofit elementary or secondary school in the state, a nonprofit regional training center recognized by the Alaska Department of Labor and Workforce Development, or an apprenticeship program in the state that is registered with the U.S. Department of Labor under 29 U.S.C. 50-50b for direct instruction, research and educational support purposes.

In addition, tax credits for certain taxpayers are available for cash contributions accepted for a facility by a public or private nonprofit elementary or secondary school in the state, funding for a scholarship awarded by a nonprofit organization to a dual-credit student for certain educational expenses, for a residential school in the state approved by the Alaska Department of Education and Early Development, or certain qualified childhood early learning and development programs.

Tax credits are also available for cash contributions by certain taxpayers for science, technology, engineering and math (STEM) programs by a nonprofit agency or school district for school staff and for students in grades kindergarten through 12 in the state and for the operation of a nonprofit organization dedicated to providing educational opportunities that foster public service leadership for future generations of residents of the state.





Other Taxes – AS 43.77.030 – Taxpayers that paid taxes on fishery resources to another jurisdiction may claim a credit against the fishery resource landing tax. The credit, equal to the amount of taxes paid in the other jurisdiction, may not exceed the fishery resource landing tax.





Scholarship Contributions – AS 43.75.032, 43.77.035 – Taxpayers are allowed a credit of not more than 5% of the business tax liability for contributions made during the tax year to the A.W. “Winn” Brindle memorial education loan account.






Get Adobe Reader