Okay, sorry
I'm gonna call this meeting in the house finance committee to order let the recruiter reflect that the time is currently
535 p.m. On Thursday, February 5
2026 and present, we have Representative Allard, Representative Hannon,
Representative Bynum,
Representative Co-Chair Schruggi,
Representative co-chair Josephson,
Representative Jimmy,
Representative Galvin,
Representative Tom Shefsky,
Representative Stout, my self-coach air posture,
just your mind or folks can mute their cell phones.
We also have with us Representative Moore and let's see here.
So with that, just a reminder again,
if folks can mute their cell phones,
I will be announcing phone numbers
for folks in the public who might be watching
if you'd like to call in.
So if wanna get a pen and paper ready,
I'll announce that here in a moment.
Also, I understand that folks may be getting dropped possibly.
So I think part of the problem
could possibly be because there are three different numbers but if folks
continue to have problems I will reach out to my staff and see what avenues we
have in terms of what possible solutions there might be.
I was just saying that some people might be getting dropped, and part of the problem might
be that there are three different numbers, depending on where you're calling from in
the state.
But I'm just looking at the back here.
If there any other solutions, please feel free to pass me a note if that continues to
be a problem.
I also want to say that before us today is House Bill 284, that's the governor's omnibus tax bill.
And we are going to have Ms. Imi Bushnell come up to give us just a brief recap of only the sales tax portion of the bill because there are three sections,
three major parts to this bill, and that is the Sales Tax portion, the corporate income tax.
Also the oil and gas tax and so
Because we did not get to the second and third pieces of the bill
We will not be taking public testimony on those pieces, but we will take public
testimony On those later after we've had a chance to vet the other portions of
The bill and
So I am going to announce the phone numbers again here, But before I do represent a baller. Do you have a question?
Thank you representative Foster
So, the information that was put out publicly kind of says something different and I know
much of the public that can get through was looking at testifying on the entire bill.
So how are we going to, if they're not specifically speaking to taxes, are just going
to say quiet.
But how you going do that?
Sorry.
comments on just the sales tax portion today.
We had a very robust discussion
both this morning, this afternoon.
And so, you're correct.
We have not addressed the other two parts of the bill,
and so we'll come back to that at another meeting.
We'll have another opportunity for public testimony
on those other pieces of bill.
Representative Josephson, do you have a?
I don't.
Okay.
And so, I think the other thing I wanted to mention is I will let folks know how many
people we have online, just so you know, have an idea.
At this point, the last I heard, there's only about 14 people.
and so it's not many. So what will happen is if we we are slated to go until 730 and
so some folks in the public might might think that they're going to call in at 645. We will
still be here as we finish. If we get done early, you know, with these 13 people and we're done in
half an hour, then we'll take a break and will come back so many, I'll announce how many minutes
we will take the break to see if more people have called in.
the email address. If folks are calling from Juneau and you'd like to testify,
you can do so by calling 907-586-9085. And if you're calling
from Anchorage, then you call 906-563-9085. So, and then finally, if
you are coming from anywhere else in the state, you
9085. I will repeat that but first I'll give the email address that folks can
submit written testimony to and that is house.finance at aka LEG.gov and so one
more time with phone numbers calling from Juno 586 9 085 calling for
9085 and then all other parts of the state it is 844-586-908 5. So with that
thank you very much Ms. Bushnell for being with us today if you could just
give us a real brief overview of a sales tax portion of
the bill and what that does just so folks in the public have a good idea of
what we're talking about.
Thank you chair co-chair foster for the record. My name is Amy Bushnell legislative liaison to the Department of Revenue
So house bill 284 it is one part of a larger fiscal plan put forward by the governor for The legislature to consider
As you mentioned it has three parts the sales and use tax the corporate income tax and the oil and gas production tax
the
sales in use Tax that the committee heard earlier today is what I'll keep my recap on
So this bill, it would create a seasonal tax of 4% from April through September, 2%
from October through March.
The bill would require sellers to collect and remit the tax to the state.
The state would administer the text and remake the proceeds back to municipalities.
The municipalities would need to conform to state sales tax base and exemptions.
45 states currently levy a state's sales and use tax, and at 4%, Alaska would tie with
The intent is to have a very broad base that applies to most consumer goods and services.
It is administratively simpler to start from an assumption of tax ability, and a broad
base allows for a low rate.
The bill does list various exemptions to the sales tax, including jet fuel, healthcare
services and related items, internet access, sales or construction of real property,
and business-to-business transactions.
30,000 foot level at part one of the Omnibus sales tax bill.
Great, thank you very much, that's perfect.
Somebody passed me a note and it's asking that all callers
call one number, is that correct?
I'm looking over, okay, so the one
number that All Folk should call is 907-586-9085.
Thank you.
With that, we'll go to our first person in the room here.
It looks like we have one person
in in room then one, two, three, four, five, six, seven, eight,
nine, 10, 11, 12, 13, 14, 15, 16,
16 people.
And so we go the the Room First
and then after we got to Mayor Beth Weldon in The Room,
we will go online.
Lester Black, Ken Huckabee,
Hakaba, and also Alex Wirth-Simer.
Mayor Weldon, thank you for being here today.
It looks like we don't have a lot of folks
that are signed up at this point,
so unless we start getting a lotta more people,
then we will start to look at time limits,
but at that point maybe folks could shoot for more
than what we announced earlier,
which was two minutes, we'll go with three,
but if folks wanna go a little over,
we probably won't enforce it
unless you get a bunch of people calling in.
So with that, please put yourself on the record.
Thank you. I'm Beth Weldon, Mayor of the City and Borough of Geno, and if you know me, I'd...
Don't speak very long at all, so I'll be quick for you tonight.
So thank you, co-chairs, Foster Josephson and Troggian, members of the committee.
Thank you for the opportunity to speak today.
We appreciate the governor for stepping forward with the fiscal package.
For many years, municipalities like Geno have been urging the state to address its long term structural deficit.
And this is one of first times in a long while we've seen a plan that acknowledges the need for new revenue.
We value that effort.
In general our community just had a robust conversation about sales tax policy during the recent local leg election
voters approved
New exemptions for food and utilities essential items in a high-cost community
That vote demonstrates two things first our residents are paying attention to tax
Policy and second they value having the ability to make local decisions in local circumstances
Geno has long supported the idea
that the Ferris statewide revenue tool is an income tax.
We believe it asks residents to contribute based on ability to pay.
But we also understand the political realities before you.
This session, if a broad base sales tax is the only revenue measure with a real path forward.
Geno understands, but we would like to see the legislature protect municipal authority and respect decisions local voters have already made.
One concern we want to flag is how the state will handle enforcement.
Geno wants to be part of the solution local governments deliver many of
the frontline services Alaska rely on every day public safety roads utilities
recreation and more a strong state local partnership is essential to any state
sustainable fiscal framework the state has needs and we have needs we're ready
to work with the administration and the legislator to ensure that whatever
supports both state stability and local autonomy.
And that's it, so thank you for your time.
Thank you very much for being here.
Do we have any questions of the committee?
I don't see any,
so thanks for coming in.
Thank-you.
So next we'll go online here,
we've got Lester Black,
and if you could identify yourself,
your affiliation as well as,
looks like you're calling from Anchorage,
Mr. Black if your online.
Okay, Mr. Black, I don't hear Mr Black online, so we'll come back to Mr
Black. Next up we have Ken Hakaba calling in from Wasilla. If you could put
yourself on the record. Hello,
I'm Ken Akaba. I live in Wasella and I am speaking for myself. Great. Thank you.
I thank you very much. Thanks for the opportunity to speak.
It's an extremely tone deaf state government that can expand and blow itself to such proportions
that much of the legislative work goes into seeking new revenue at every turn and tries
so hard to sell to state on such detrimental long-term, long binding terms.
I got to say we just not read a word about the thousands of oil industry jobs lost in
the past few months, and this is a grievous insult to that injury.
We've also heard how we need to inflation-proof public employees, and we just heard in testimony
what we all need be paying for.
But we don't hear any language about how were doing fiscally out here to be able to pay
for these things.
And we did, like I said, about a lot of us losing our jobs.
As a retired energy industry employee, I find it curious as to who worries about any stability
for the people or small business who pay the bills around here.
We've never heard the questions after the PFD takings and the layoffs from anyone about
how the workers, recently unemployed or retirees, are going to pay for more taxes.
This coupled with a broad-based property tax increase, this place is small and shrinking
working class, and what can only be underrepresented in indentured servitude for the benefit of
a bloated state that's unwilling or incapable of rightsizing as necessary in shrinking when
I believe that with all considered, we are well in the destructive end of the parabolic
life recurve that everyone knows about.
It is inevitable that out-vigration will increase and revenues will fall because of
this.
And to add, as the governor stated earlier, in a service industry state, adding jobs will
only cause more voting government.
It's a quickening of financial failure, emulated every single state and city that's done these
things and increased its tax base.
on the vehicles that we need to work and conduct businesses is it on a food we
need the fear families is that on The transport that
we needed for affordable medical that
we can't get in the state because of the
certificate needs still in place isn't on everything
I strongly urge dropping this bill and not passing of this community
through the committee in fact now I'm down to begging because that's all I
can do I greatly appreciate the legislators
for tagging us on this as their efforts are critical
It's going to need divine intervention because the human intervention seems to be failing us.
Thank you for the opportunity to speak.
Thank You. I think we have a question.
I just want to also note, I might have mentioned Representative Moore,
but just in case I didn't, she's also here.
And also today.
I was here, but then I haven't.
Oh, OK.
For the record, just so folks know that she is here also.
We have the question, Mr. Hakaba from Robson of Stout.
Yeah, thank you, Coach, your fosters the chair, Mr. Hakaba.
Thank you for your testimony.
I just wanted to make sure you're aware that this proposal is from the executive and not from
the legislature.
It was a little confusing by your test.
Oh, I understand entirely.
I do understand that, sir.
Thanks.
Yeah.
And that's why I'm thanking the legislators that are working for us trying to beat this.
And I am just the baking of the government, state government as a whole.
Thank.
Great.
Thank you very much. Also regarding the phone number, it sounds like some of the problems that we had with people being dropped
was using the 844 number and we ask folks, sounds that that line is having problems.
So, again, the other number that I mentioned, if folks could call into the
other numbers, and that is 907-586-9085, regardless of where you are in the state,
if you could please call that number.
We're up in a valid. Can you repeat that number? I just got a text that five people were dropped off. Oh, thank you
Yeah, that numbers 907 586
Okay, Thank You chair. Great. Thank you. Okay. We'll go to the next test fire and that is
Mr. Alex worth Meyer calling in from Juneau and then after
Mr.. Worth Meyer we've got Chris Noel
Thomas Morfette and Mike Milligan, so with that, Mr. Worthmeyer, if you could put yourself
on the record, state your name and your affiliation.
My name is Alex Wertheimer. I'm in June of Alaska, and I am speaking for myself.
And I thank you for the opportunity to provide comments on HB 284.
I'd be pleased to see the governor is finally considering a broad-based statewide tax to try
and put the state budget on a sustainable path and invert a plunge off the proverbial fiscal cliff.
Unfortunately, the governor's plan is flawed and actually contradictory to a statement that
allows him to deserve a stable, rules-based fiscal system that avoids the boom and bust
cycle that comes with a budget based on the price of oil.
Instead, it proposes a plan for short-term relief to tax revenue than blind faith in
the volatile and uncertain revenue streams in the future for oil and gas extractions.
I have several major concerns with the plan, but I'll focus on statewide sales tax.
issue for now. A statewide sales tax is not the appropriate approach for Alaska. We need
to return to a state income tax. I remember paying state-income tax decades ago. It was
a very simple process based on a percentage of your federal tax, it is a progressive tax
system so that those who have limited income pay a lower percentage.
It would recoup some of the money leaving the state with our large seasonal workforce
without contributing to the infrastructure and operation of the state.
A state sales tax would impact low-income people the most.
It would also disrupt the current use of sales
tax by many municipalities throughout the
state to fund local government, including the elimination of exemptions
crafted by the electorate in those jurisdictions.
Also, the sunset provision on the new tax
is very incredibly short-sighted.
We've seen this movie, the state eliminated the income tax because oil would pay for everything and we know where that has quit us.
It is very much wishful thinking that increases in oil and gas revenue will increase enough to offset the need for tax revenue,
especially when you throw in the elimination of important current revenues such as the corporate income taxes.
We are back to the boom and bust that the governor says the plan avoids.
The tax rates can be modified to reflect that, but the taxes should not be eliminated.
Thank you for the opportunity to comment on this portion of HB 284.
I'll send a written copy of my comments to the committee.
Thank You so very much, Mr. Rothheimer, and I don't see any questions.
So we were going to circle back to Mr Lester Black, calling you from Anchorage. Mr Black. Are you there?
Okay, we'll try them again here in a little bit.
We're gonna come down to,
and just so folks know,
we've got about 20 people online right now.
Chris Noel, Mayor for the Nanalee Borough,
calling you from Healy, Mr. Noel.
If you could just confirm that
by stating your name and affiliation.
Yeah, thank you, co-chair Foster
and co chairs and members of the committee.
For the record, my name is Chris Noll
and I serve as the Mayor of Nanamee borough.
Thank you for the opportunity to testify on House Bill 284, the sales tax portion of that.
And I also wanted to echo Mayor Welling in acknowledging and appreciating the governor for
introducing this new revenue measure.
The Denaliboro understands the state's revenue shortfall and the pressure it creates.
We need support for our schools, a capital budget that makes a meaningful difference
and community infrastructure, and investments in new needs across the state,
as well as inflation-adjusted programs so that we are not locked in a cycle of declining support.
The borough has long supported a fiscal plan that includes new revenue,
and we believe that an income tax is a fairer statewide tool because it asks
Alaskans to contribute based on their ability to pay. There's also a tool the
state is uniquely equipped to use and one that is not available to municipalities.
A sales tax proposal must not undermine local authority or override decisions local voters
have already made.
Sales tax is among the most regressive revenue tools with the burden falling most heavily
on low income and vulnerable residents that threatens local decision making and voter
approved local policy choices.
In the Denaliboro House Bill 284 would impose a sales Tax when voters have not yet approved
in many places it would be so on top of local taxes that have already been approved,
making day-to-day life more expensive. Finally, it was preempt local control by risking
this subordination of municipal exemptions and caps to state law and layering state administration
onto locally imposed taxes. Thank you, co-chairs for the opportunity and members of the committee.
I don't see any questions of the committee, so we'll move on to the next
Testifier and that's Thomas Morfitt calling from Haynes if you could looks like sorry Mayor Morfeit
If you can just state your name affiliation
Mr. Mayor from Haines Mayor morfeitt are you there?
Okay, we will go over to Mike Milligan calling him from Kodiak
Yeah, thank you, Mr. Chairman for having this hearing. I am absolutely opposed to a statewide sales tax
This proposal punishes all those communities from North Pole to now to Homer to Cody app that already have sales taxes
This also sets up the state of Alaska to create another
bureaucracy to help manage
of statewide sales tax. I lived in Fairbanks during the pipeline and Fairbank's head of sales
tax, I think in 75 or 76 they had over 20 million dollars in extra revenue from a sales
tax the number one rule of any tax since before Fred Flintstone is that you always tax
the other guy. You always test the
other guys. We have a situation in Alaska
where we allow foreign multinationals to
lose money in a foreign country and bring
those losses back to Alaska so they can
deduct them from the obligation they
have in Alasko oil taxes. So there's so
many reasons to be opposed to this.
But the number one reason why everybody in a legislature should oppose a statewide sales tax
is that it removes one of the few tools that Bush, Alaska has to manage alcohol.
And if you do this, it's just going to create more problems and create
more things that need a solution. Sales taxes should be local.
They should be figured out in Los Silla, figured in Kodiak,
figured it out at North Pole.
They shouldn't be allowed to be managed by the state.
I'm opposed to this, and I look forward to the legislature putting some local input
into this misguided state proposal.
Thank you.
Thank very much.
I don't see any questions.
Yeah, thank you. I'll coach your foster through the chair. Thank you for just money.
I especially like the Fred Flintstone line. Just to be clear, any comments on you are
getting a bigger constitutionalized dividend on this proposal.
I don't know if you want to comment on that. Thanks.
Mr. Milligan.
Yes.
I just wanted to say that one of the purpose buying the sales taxes to get you a bigger
PFD, and I thought that wasn't clear about your testimony, so I didn't know it.
Have you had any thoughts on that?
On the PFT, well, like so many people in coastal communities, we've traditionally supported
because postal communities have so many outside people
that come into the community.
So I agree with the Hammond philosophy
that the PFB was not an entitlement.
It was taking money away from the government
to give us control, individual control over it.
It wasn't supposed to be an entitlement.
I look forward to my PFP.
I think it's a great program.
I thing more countries should use it,
but I don't see the sales tax as protecting the PFD.
What I see at the front of the PFB
is giving multinational oil companies an excuse
to launder losses here in the state of Alaska.
And that's something that I hope the legislature
is able to address during this final session.
Can I just do a point of clarification with the caller?
Sure, up similar.
Just for clarification, are you saying that you would forgo your PFD not to have sales
so that we wouldn't have sale's tax?
No.
Oh.
No, I don't think we should get rid of the PFT.
The PFG is something that gives citizens power.
It's a power issue.
It is not a money issue, it's the power issues.
Support anything that would get rid of the PFT
Okay, I don't see any further questions. Thank you very much to mr. Milligan. We have two people.
Thank You.
Thank, you we have to folks who I'm gonna round back to see if we can
Get a hold of them and
But next up in line after them. I've got Kelly droop Tracy Shafer and Rob Christians
And so let's go back and see If Lester black is online mister black are you there?
Okay, not hearing Mr. Black. We're going to go to Mayor Morfitt Haynesboro. Are you there?
Okay. Not hearing
him, we're gonna go, to Kelly Droop calling you from Anchorage if you can state your name and your affiliation
Kelly droop are you, there
Okay, we'll come back to Kelly later Tracy Schaeffer calling it from Kotzebue are you there?
Okay no Tracy Shafer I wonder if
Mr. Stett represents that
Kind of feels like there might be something wrong with our system with the amount this amount of people who are not
Responding right well, let's see if we can go to the next one here, but I think
I don't know if it's possible to check and see if, if there's any, any way to find out
more information, maybe.
Let me, let me check the next two people.
Maybe you want to give out your cell phone number.
Okay, Rob Christensen, are you there?
Hmm yeah, this yeah I was gonna say
We're gonna do a brief at ease and just make sure things are okay with our phone system. So brief it ease
Okay house finance back on record also would like to note that we do have with us this wonderful evening represent a vellum
Thanks for joining us here and
As we take public testimony on on this bill
So it sounds like
Sometimes when folks drop off normally on my list here
It would show that but they're dropping off kind of quickly and not quick enough for not giving enough time for our
the call. So it sounds like the next person is online. That's Gila Stewart calling from
Haynes. If you're there, if you can state your name and your affiliation.
All right. Yeah. My name is Lewis Stewart and I'm calling. I am the finance director
for the Hayne Furl. And I wanted to thank you for this opportunity to testify on House
We have a Haynesboro assembly meeting tonight that's happening right now and he's chairing that meeting.
So I wanted to say a few words and testify on behalf of Hayne in his stead.
The Haynsboro is heavily dependent on local sales tax revenues in order to provide services for our residents and visitors.
Currently, sales tech pays for 30% of all general fund services.
and it pays for 45 percent of our police protection and public works.
This fall means residents voted in an increase to our current bail tax rate which will
increase our summer rates to 7 percent. This was done largely in response to
increased need for funding for our local school district as state support has decreased in recent
As a rural Alaskan community, our residents are already stretched to the max paying for
fuel utilities and groceries without the double-digit sales tax rate that this state proposal
would bring on Haynes residents.
The Governor's proposed plan would greatly inhibit the Haynsboro's ability to provide
services to residents and visitors.
but the proposed sales tax would undermine the Haynesboro's ability to provide services.
Thank you for allowing me to testify.
Thank You so very much, Miss Stewart. I don't see any questions of the committee.
Just so folks know if you're if your called in and you are waiting you wondering how many people
might be online. Currently we've got 18 people online in the next three that I have in
Channer and Elizabeth Bacom.
So with that, Mr. Smith calling from Anchorage
if you can state your name and your affiliation.
Yeah, hi, this is Brian Smith.
I'm speaking on my own behalf,
the teacher here in the school district.
And with the budget cuts that we're experiencing now,
I certainly understand the need for the state to raise revenue.
The situation we're seeing in our school is going to break several schools, it's going
to bring teachers, people are going into tears, they're going terrible.
That said, a sales tax is just not the way to go.
Regressive impacts all around the state, taking more relatively from people who have left
I understand the governor's proposal pencils out to roughly a billion dollars a year in
additional income. I would suggest that we could get roughly the same amount, not with
a sales tax, but by specifically looking at a couple of lines in the tax code that credit
oil companies with roughly $1 billion a years for the past couple years, I found this information
for spring 25 revenue forecast, lists for fiscal years 22, 23, and 24, a total of $2.9 billion
in producer's credit from two statutes, last statute, 4555, 024 IMJ.
A huge amount of money that we've been in a while.
That sales tax, that would be my suggestion to look at the oil tax credits that we've
given away.
And if we need additional revenue, then I would agree with some of the previous scholars that
an income tax is clearly the more fair way to go, but also capture some the seasonal
income from seasonal employees and transient employees who we work too on and too off.
Thank you for the opportunity to testify for you and I'll be submitting to you in a second.
Great, thank you very much.
I don't see any questions from the committee on that note about submitting written testimony.
Just a reminder, people can submit written
testimony by emailing us at house.finance at akaleg.gov.
Sam Chanel, and he's calling him from Took-Sook Bay if you could state your name, your affiliation.
Chair and members of the committee, for the record, my name is Sam Tanar, I'm the mayor for
the city of Tooksook bay. Thank you for that opportunity to testify on HP 284.
I oppose the passage of HB 284 in order to authorize the Department of Revenue blanching
to the streamlined sales and use tax agreement or substantially similar agreement.
Tuxia Bay was one of the 15 municipalities that joined the Alaska Remote Sales Tax Commission
The ARSSTC membership expanded to about 50.
Hooks update receives monthly deposits from ARSSTC on timely manner for our sales tax revenue.
If Hook's update will continue to receive late.
the Community Assistance Program payments
beyond the month of July.
By share with the passage of 284,
Cooks of Bay will not receive monthly sales tax revenue
on a timely manner.
Thank you for giving me the opportunity to testify.
Thank-you very much, Mr. Mayor.
We have a question from Representative Jimmy.
Thank you, co-chair foster
thank you mayor
tanar for calling in and
I just wanted to ask and put on record for you to share
The things that took sick bay use for local tax and what are the needs the city has beyond these?
Mr. Mayor
I'm sorry for question
I'll ask again, what kind of things does Tukzuk Bay use with the local tax and for what
are the needs the city has beyond?
Like Jambhgadu, who sells tax, amok tuksu kami?
So our city of TUKsu Bay in the administration department itself sells back's income is like
19% of the administration revenue. The administration income alone pays for
poor departments, the Administration and Finance City Council public safety and public works.
We have our authorized budget, our expenses are more than
The admin income and we use these sales tax revenue to all sub costs for
for street lights
Or oh
Street lights is one of them. I'm not prepared
fully to answer the question
Representative Jimmy follow-up. Thank you, co-chair faster
Jalit Una up to here amkin is there enough to pay for a fire department in tuxuk?
With the local sales tax of tuk-suk Bay
The question
As Took-Sook Bay with the sales tax rate right now,
locally for Tooksuk alone,
does Tucksuk Bay have enough sales-tax funds
to support a fire department in Tuk-sook?
In other words, does tooksuke Bay
have a Fire Department?
The sales pass income is not enough
to pay for the services that Takesuk bay provides.
Our sales tax rates never changed ever since those health tax started.
Follow-up.
Could you please share on record when there is a fire in Tuxig Bay or in any villages, how is fire dealt with?
Community of Tukshuk Bay was a recipient for the fire code of fire equipment.
The fire equipments have been outdated.
Only if we can use the Fire Code Red equipment because we need to be near the
fire hydrant.
Fire hydrants isn't for firefighting purposes to release the
pressure of the walker line.
So in follow-up.
So just to make it clear, it took so we do have a fire hose, but it's not rarely used,
but in other villages, people cannot respond with a Fire Department.
There's none whatsoever out in the rural area,
but people do respond to fires with five gallon buckets, manpower.
Basically just throwing water on flames correct
Yes, oh, yeah
Yes
Thank You chair foster and through the chair just a quick clarifying question. I thought I heard mayor Chanar
Thank you for being here
State that they had that their community did not receive timely community assistance payments
And I just wanted to verify that because that's the first time that I had heard that those payments weren't going out in a timely fashion
Mayor Cenar do you have an answer to that?
Yes, I
Testified for house bill 133 last year in support of payment of contracts because
the community assistance program that we have received in
fiscal year 22 it was in the month of September in sister 23 August
in fiscal year 24, and fiscal
year 25 in the month of October.
And for the fiscal
year, we received it in
September.
Thank you.
Yeah, I don't see any further
questions, Mayor Chenar.
Thank
you very much for calling in.
The next three names I have up
are Elizabeth Bacon,
Kerlin Storm,
and Theresa Obermeyer, Ms.
Bacon.
If you could put yourself on
the records,
get your name and your
affiliation.
Hi, my name is Elizabeth Bacon, then I'm calling from Petersburg, Alaska, and I'd
like to thank you all for taking public testimony on HB 284. A statewide statewide sales tax is not
good for Alaskans that are already struggling to pay for groceries, utilities, child care, rent,
and a number of other things. The so-called temporary sales
for our low or fixed income, as well as local businesses, for Peter's birth, that turns us
into a 10% sales tax community. Additionally, some communities are already using local sales
tax revenue to provide services like road, fire, police, libraries, and many other things that
A state sales tax will be an additional and unnecessary burden for those residents and
those communities.
I support a fair and reasonable income tax structure that is specifically targeted to
fund education.
A tax that won't impact those considered low income and addresses the dollars earned in
Alaska that also leave Alaska.
I implore the members of this committee to work creatively across the aisle to keep Alaska
on a sustainable path for all who are fortunate to call this home. And I thank you very much
for taking my call. Thank you. Very much. I don't see any questions. So we'll go to the next
test fire. That's Carolyn Storm calling you from Anchorage.
Co-chair Foster and other customers thank you for this opportunity and thank
you to taking public testimony. My name is Caroline Storm. I am testifying for myself this evening.
I do support the legislature analyzing options for new revenues as oil and federal revenues
continue to shrink. But based on the ICER presentation of the fiscal options in front of
I think and don't support the sales tax because it is so regressive.
It is especially regresive without additional exemptions for unprepared food, formula, diapers,
menstrual products, basic first aid, et cetera.
The legislature has before it three easy revenue options that could be voted on implemented
this year.
The online sales tax, repeal SB 21 from 2013, and close the S Corp loophole.
Please continue to analyze revenue measures that are the least regressive.
So to keep with Alaska, thank you very much.
Thank you for calling in, Ms. Storm.
I don't see any questions, so we're going to go over to.
We've got next to the next three are Theresa Obermeyer, Rita Trumeter, and Tara Hutchinson,
and so Ms. Obermeier, if you can state your name and your affiliation.
Good evening. Can you hear me?
Ms Obermire,
if could get maybe a little bit closer to
the mic, it's kind of cutting in and out a
testimony, I certainly do want an online sales tax, and I definitely support the S Corp loophole.
And I cannot believe we let Mr. Hildebrand play solo as our children do not get an education.
I want to mention that I represent a total in my immediate family that lives here in Anchorage.
of 14 people, that's eight adults and six children.
I will not, I cannot support any youth athletes in Alaska.
And because you see ladies and gentlemen,
I read that we would have to hire 67 new state employees
to implement a sales tax.
This is ridiculous.
And I don't support it because we are handing out money
and taking in money on another.
This doesn't make any sense.
So I really hope that you will not support
any new sales taxes at all.
I lastly want to mention,
I find it really kind of comical.
That is, the end of governor's work done with the administration,
he has some big fiscal plan that goes through 2031.
Ladies and gentlemen, we know you cannot implement anything more than one year, and he should
have been doing this at least since he was such a elected, not at the end of his administration.
So thank you for hearing me and I appreciate it.
What a neat group of people you have heard from.
They really impressed me.
Well, that's it and we care.
Thank you so much for hearing it.
Thank You so very much
for calling in.
I don't see any questions.
So next we're going to go
to Rita Traumater, calling
in from North Pole if you can
state your name and your
affiliation.
So this is Rita
Traummater from north
Paul.
Thank
you. Please.
Can you hear me?
Yes, we can.
Okay, this is Rita Trauma from North Pole, and I'm talking on my own behalf.
I understand the government.
Am I coming through?
Yes, you are.
Okay.
I understanding the Government would like to increase income to our state, since you
are unable to maintain a workable budget by making the legislative departments cut budget.
If you are going to have a seasonal tax throughout the summer months, I would hope that the
Alaskan residents with a photo ID would be exempt.
But still having a tax through out the winter months as the reduced rate for all the necessities
such as fuel oil, gasoline, food, medical supplies is not helpful.
But persons who are on government subsidies like WIC and food stamps would not be charged
the tax.
That's definitely not treating people equal.
Not sure how that is actually helping the working person that
is trying to make ends meet.
This bill is taxing everything that comes into the state,
items purchased out of state and even vehicles.
So does that mean that somebody who has a vehicle
they purchased a few years ago and is still making payments?
As they register the vehicle in Alaska, they will pay tax?
What would the plan see on a used vehicle?
For years, legislators talked about people leaving the state because they could not afford
to live here, but now they're making it more unaffordable.
Do you think that's going to get more people to stay in the State as the cost of living
rises?
Think about the people in Thean Carrier that had the severe cold for the month of December
and is now getting those utility bills.
that the taxes are going to entice anybody to reside here long term. If you think that we do need
a sales tax then completely eliminate property taxes. Some residents might be more understanding.
Please vote no on HB 284 as written. Thank you for your time.
Thank you.
Thank You.
Okay.
Next three.
We have Tara Hutchinson, Kate Vay, and Miguel Ramirez.
Ms. Hutchinson.
If you can state your name, your affiliation.
Looks like you're calling from Fairbanks.
Yeah.
Hi.
This is Tara Huntington.
Okay?
Yes, we can.
Okay, great. Yeah, so I'm telling to share my thoughts on the proposed fiscal year 26 budget. I suppose the budget as is the governor don't like his legacy will be remembered for failing a lasting children by not supporting education funding for the term of the governorship selling out a last
but don't benefit Alaskans that he lost. While I love that for his timeline,
I don t believe we should allow him to add to that by further burdening Alastian families
and their possible. We already have a president doing that with Harris.
I support passing legislation included in the bill that has been previously vetoed by the
As corporations and oil and gas companies, I support raining in ava expenditures by passing more congressional oversight of their activities.
After these things passed,
I would support taxing a lot.
Not with a sale tax, but by an income tax that would include income from some of the highest earners that I have worked with.
and then back to the airport whether it's on the north slope of Alaska or the hard rock mines across
Alaska. Those are the end of my comments that I did hear a question earlier and it was to
the effect if the build provides a bigger PFP would you support it and well of course everybody
are attacked by the federal government, and so a majority of our state resource dollars
would then be going to the Federal Government. I just wanted to point that out,
and I appreciate you guys taking the time to hear public testimony,
and just want to say thank you. Thank you very much, Ms. Hutchinson. Next up, we have Kate
Hey, this is Kate Bay from Still.net.
I hope you can hear me because it's really crackly here,
but I oppose the tax.
I would like to see you rate things that are bad for you,
alcohol being taxed, because they're so bad
for ya.
But here's what I'm gonna say.
It's time to tax the rich.
I am also going to say
Um, you need to start looking into an income tax and that's going to end my phone call. Thank you for, um, listening, sending. Bye bye.
Great. Thanks very much for calling. We have a question. If you're still there. Rep's in. Oh, no clarification. Did she say tax the rich?
Uh, Ms. Bay, are you still? There? Yes. Yeah, I could barely hear you say it again.
Uh. Rups in the valor did you see tax? The rich.
Great. Thank you very much, Ms. Vay. Okay. Next up, we have Miguel Ramirez and then
Sandra West. Mr. Ramirez?
Yes, good evening to the legislature. I thank all of you for what you do.
I am Miguel Ramírez.
I live up in Fairbanks.
I'm representing myself this evening.
I'll be able to testify on HB 284.
into pushing this bill because our legislature since 2013
hasn't been smart about money, in my opinion.
Do any Alaskans really think that the legislature will honor
a sunset of this tax?
I don't know, because once they see billions coming in,
they can just spend more and more more.
I honestly don t think a legislature in the future will
Also, I saw some testimony earlier that if somebody was to buy a vehicle from such state
as Washington that they would be taxed bringing it in to the state, why should Alaskans be
told by the State Government how and where to spend their money and then get punished
I don't think the government has a right to tell people how and where to spend money,
nor to punish people for spending their hard-earned money.
And look, they are contributing to the state because they're staying and living in this
state.
My other thing is they say that we will get a bigger PFP.
Well, I am one of the shareholders of a PFD.
The PFB should have never been touched to run the State government, in my opinion, at
all.
It was a fully funded PFP which the money should have never been touched to run state government.
You can correct me if I'm wrong but also pandemic money that came in federally
should not have been used to running the state and government now some of you have
been sitting on the legislature maybe 15, 20 years that or possibly there many years ago.
So when a governor is pushed back and he to administration is push back it's looking
for ways to make revenue, it's the great state of Texas and Florida that their governors succeed
in making zero property taxes for everyone in those states. Can you imagine the out migration
that Alaska is going to have? You all have. And I've noticed that when Representative
especially when he is asking a yes or no question of these such representatives.
So I don't know where I stand on HB 284. I know we need to stop out my gracious.
I've always said for some reason the legislature does not want to get rid of vacant positions
Maybe move the session back to the road system and leave the capital where it is.
That may bring back additional funding to state government.
I just, I thank all you all for what you do for representing your communities.
It takes a lot to hear all of us.
And I think you for taking the time to hearing this evening.
Thank you.
For calling in, Mr Ramirez.
I don't see.
Oh, we have a question.
and this shout out appreciate it okay i don't see any other questions thank you thank
you uh next up we have uh send her a west laura bonner and lenda ledford so next we'll go to
miss sendra west calling from korea could be you can state your name and affiliation hello this is
I am on the City Council, and I'm speaking on my own behalf.
I want to thank the co-chairs and the members of the committee for the opportunity to testify for House Bill C-84.
And since the state revenue shortfall, we also have a shortfall.
I support broad-based revenue,
because it asks the last chance to contribute based on the ability to pay, I repeat, the
ability, to paid. Bottom line, 8-3-284 would increase the total tax burden on Alaska.
And in many places, it would do so on top of local taxes that voters have approved.
They can day-to-day life or expenses using out-fold budgets statewide. In my community,
An additional sales tax would meet additional costs for the very basis of life, food and shelter.
I just want to repeat, it will increase the cost for food
and shelters. The burden of the state's fifth of
the sales costs will fall on the low income and our most vulnerable residents.
Our community sales taxes include things that voters approve to make the system workable.
Thank you very much of care and that's of the committee. I appreciate this opportunity
Thank You very, much. We've got a question representative Allard
Thank, you for calling in tonight, so would you since you wanted income tax would
You agree to a flat income, tax price like percentage for everybody, You know, whatever that might be?
Regardless of your income flat and come tax percentage
Ms. West I would have to say I'm not familiar with that
Enough to stay yes or no
I want to just clarify just a little bit if I got
Tax 3% would you be willing to get tax 3 percent on your income?
Regardless of how much we make okay. Thank you
Thank You. I don't see any further questions. Thanks you very much. Ms West for calling in
Let's see here, we've got one, two, three, four, five, six, seven, eight.
We've get 10 folks on the line, just so folks know how long the weight is.
So next up we have Ms. Laura Bonner, then Glenda at Ledford and Randy Griffin.
So Ms Boner, if you're there, calling you from Anchorage,
if can state your name and affiliation.
Hi, my name is Laura bonner and I live in Anchorage.
My testimony is going to be kind of disjointed real quick.
Sales tax is not the right way.
It's really good aggressive, and it will hurt families the most.
In the five years, the governor proposes to reduce corporate tax rate to zero,
putting the burden on everyday Alaskans.
Many communities already have a sales tax to pay for local services.
I'm opposed to the PFD portion of it where he wanted to make a 50-50.
I don't think that's sustainable.
The fiscal policy document from Alaska Municipal League makes worse sense than the governor's bill.
Joining the multi-state contact is not a good idea.
But passage of SP21 in 2015 has caused our state way too much.
We didn't increase production, but Alaska is getting about a third of the revenue we
did before passage that bill.
Like I said before, local communities already have a sales tax to provide their services.
There are other ways for revenue, increasing revenue.
The online internet tax needs to pass.
And income tax would be easier to administer
than what is proposed in the governor's bill.
So, I'm adamantly opposed to this bill,
needs be totally rewritten
and I hope the legislature can come up with a better plan.
Thank you for the opportunity to speak.
Thank you very much, Ms. Bonner.
Next up, we have Mayor Glenda Ledford calling you from Wassella.
If you can just state your name, affiliation.
Cares and members of the committee for the record.
My name is Glonda Lutzer.
I'm the mayor for The City of Wascella and the Master Baller.
Local governments have understood the state's revenue shortfall and the pressures it creates.
We've long supported broad-based revenue, and we've constantly said an income tax is
a very state-led tool because it asks a less than to contribute based on the ability to
But if a sales tax is the only proposal moving, it must not undermine local authorities or
override decisions local voters have already made.
Let me state that again to be perfectly clear.
But in a sale tax, if an only proposals moving it much not under my local authority or override
decisions.
HB 284 would increase the toll tax burden on the last week and in many places it would do so
on top of local taxes voters had offered your food making day-to-day life more expensive
and squeezing household budgets statewide. Not only in my community but that means grocery,
A sales tax is among the most aggressive revenue tools.
The burden falls most on low income and vulnerable residents.
It's local decision making and local voter approved policy choices.
The community's sales taxes to the extent that voters approve to make the system workable here.
for coordinating municipal exemptions to state law
and does not clearly detect voter-approved local sources.
Thank you, co-chairs and members of the committee.
Thank-you so very much.
We do have a question, representative Moore.
Thank You, Chair Foster.
Not a questions, just always a pleasure
to hear your voice, Mayor Glenda.
Thanks for calling in.
Okay, I don't see any further questions.
Thank Madam Mayor for coming in,
Next up, we have Randy Griffin calling it from Fairbanks.
If you can state your name and affiliation.
Hello, my name is Randy Griffith, I live in Fairbank,
Alaska and I'm just speaking for myself and
I am against the sales tax that is a part of HP 284.
And the reason,
my main reason is because it would destroy the honesty
and the purity of our dividend which so far has always been
surplus money that's available after essential services are paid for, and some services
are more important than the dividend. For instance, public safety and courts and snow
removing such, but there may be some things that are not more
important then the dividends. The dividend is a wonderful thing. It's free money,
but any state that can hand out free
money to all of the citizens certainly has no money problem.
It would change, if we had a sales tax or an income tax for that matter, it would
change our PFB into a PAP, which is a public assistance payment, and they shouldn't even
ever call it a dividend again, because the dividend generally means you've got surplus
mining like a business that has profit, they can pay their shareholders a dividends, sometimes
And I do not want it to change into welfare.
Right now, there's no shame in taking the PFD.
But if there is an income transfer going on,
we're sucking money out of the pockets of Alaskan people,
just to give it other people in Alaska,
who are many of them not working,
many drug abusers or bums, or what have you,
we should not do that.
Now, if it's nothing wrong with the public assistance payment
as long as it goes to.
needy people that you know have no other way to help them get back on their feet, but
That's why I'm against the sales tax
I consider the lack of a sales-tax and the last of an income tax
Which is a hurdle to try to achieve those things and so the lakh is like a barrier to excessive
Government spending we spend plenty of money and we will get more money as the permanent fund grows into the future
uh uh breach our barrier from the PF from
the pacts is washing in on us just like in the Netherlands
they've got a seawall to keep the North Sea back from washing
in and and I would not want to see that breached
and that barrier broken and i do not wanna break our
barrier which is no income tax and no
Okay, thank you very much mr. Griffin. I don't see any questions. So next up
We're going to go to mister James
Acorella Ria
Calling in from scammon Bay after that. We've got Roberta Murphy and Jacqueline
Mule Bauer. so with that James good heavy on board here, please proceed with your testimony
Good evening
This is James at the L.A..
I'm their RTG president
I'm also the resident of Skamin Bay.
We are in opposition of the sales tax being proposed
because it puts burden to our people. In rural Alaska,
everything costs more before tax even starts.
Great, largest, plain, costs a lot of money out there in our villages.
But it does on the road system, sales tax, tax on top of that.
We're also paying a chair, which has brought our fuel to a region for villages about 40,000
a year.
That's put us on a survival.
And I feel there's no substitute or no competition.
If there is a one store or a few stores or one supplier,
you can't shop around to avoid the tax you paid or you go without it.
And the money that our people make out in our villages is not disposable income.
Rural households rely on seasonal work
subsistence fixed income
Let sales tax a large
Chair of that what middle cast people
have
And that's my testimony
Great appreciate your calling in. I don't see any questions. Oh, we do have a question representative Jimmy. It's more of a
Comment
And I just want to say, James, is somebody I've known for a long time, and I look forward to seeing you this summer. So thanks for calling in.
Roberta Murphy calling for me, Monica, if you can put yourself on the records, take your name and your affiliation.
Hello, this is Roberta Murphy. I am sorry. What did you say? Oh, I'm sorry, you could put yourself on the record.
Hi, hi, Robert, a mercy.
I AM for mnemonic.
I and the tribal administrator for tooling up native village.
I Am again.
for assistance with food and utilities because they are they
are unmet needs and we get a high volume of requests the city
government depends on our local taxes we only have one
cargo that really comes here to a monarch and in the past six
a case of top ramen went from 20 dollars to 25 dollars.
Like, this is real, you know,
we're already suffering in rural Alaska because of the prices we have to pay for it to come out here from,
from Anchorage, like, I am considered,
like any monica would be considered.
You know.
I'm not on assistance and I am barely making it, you know, because that price of everything
that, just to live here, my oil cost $9.68 a gallon.
My grocery bill is like $700 and that's every two weeks and we are trying to make our money stretch and you're asking us to
there should be other sources to find this money or you know you're taking your belt a little bit.
A majority of them on the people here live off food stamps and heating assistants and
and there's a lot of people there're some people who don't qualify for any of that and
You know on top of that, you know, if our snow machine breaks out, we have to order part and
In order for it to come in a timely manner. We have put it on the one cargo that charges 78 dollars for 23 pounds of
Freight
Personal machines and four-wheelers are used to go fishing check net
I mean that's a go-hunting get wood
Because we cannot
uh totally depend on what's at the start because we can't afford it so we subsidize with our
Imanik has a cannery, and it employed many people in the region, but we don't have that
anymore.
With the fishing collapse, all the people that depended on working there and selling
their fish there no longer have.
following
Don't give us a seat tax
Thank you
Thank You very much mr. Murphy. I don't represent of Jimmy and
Robson Jimmy
Thank, you miss Murphy for calling in and giving that very hard testimony. It's all too familiar to us
Coming from the rule. Oh, I just have one question. What is the sales tax up in ima right now?
It's either 3% or 3%, yeah.
I know the community, there was a vote
to try to get it to 4%, but that was hard no.
I would still say that that
was, it's still pretty high.
And I have one more question.
Co-chair Foster, thank you.
It was in a dream.
Would you support keeping the tax on
Businesses, instead of making it smaller.
Oh, wait.
That's a lot of questions.
I like it make the businesses in like the big.
I'm sorry.
Let me be clear.
Would you rather tax big corporations businesses instead
of make it small?
Yes.
Thank you.
100 percent.
Boyana.
They are money making people and they continue making more money.
Do we have any other further questions of the committee?
Seeing none.
Okay.
Thank you very much, Ms. Murphy, for calling in.
Next, we're going to go over to Jacqueline Mulebauer.
And then after that,
we've Rosalind Grady, I believe,
Wyke and then Barbara Haney.
Ms Muellbower calling for Fairbanks.
If you can state your name and affiliation.
Hi, good evening. Yes, my name is Jacqueline Neldauer. I'm calling on behalf of myself here in
Fairbanks, Alaska. Calling on my opposition to HB 284. Mostly because as everyone else is
testified, it is hard on local governments and it's even harder on lower and middle income
I just paid a $1,200 oil bill for having to get through heat.
We had that record load and that oil bills not fun for anybody.
But my suggestion instead of a sales tax would be to tax the oil companies.
It's appalling how much they get out of our resources in Alaska.
so that we can have the best schools in the country, the
best roads in
the countries. There is no reason to not tax oil companies. But
beyond that, we absolutely should have an income tax.
Most other states do. We don't, which is wonderful,
We have to start thinking about how the future is going to look, and that is
going between taxes. And we can't eliminate the corporate tax. For the same
reason, these companies make enough money. They can absolutely afford to pay taxes
to our state, make our states better,
and make a profit. The legislature has a duty to Alaskans, not to corporations.
Please don't starve our state for some mythical tax breaks that will generate economic activity
We give enough at the last end. It's time for our states to start giving back and helping us be the great state that we wanted to be
Thank you
Thank You for calling in. I don we have ropes in a step. Yeah, thank God your posture to the chair to miss Jacqueline
Always good to hear for you. Thanks for coming in
Okay, I don't see any other comments.
So with that, thank you very much, Ms. Mulebauer.
Next, we'll go to Roslyn Grady,
and I'm sorry if I've got your last name
incorrectly pronounced white,
I believe, calling from Anchorage
if you can state your name and your affiliation.
Hello, you said my name right.
Good evening, Chair and members of the committee.
My name is Roslyn Grady White and I'm here today actually as myself and being a resident
of Mountain View, one of Anchorage's most diverse and most disenfranchised urban neighborhoods.
I am speaking because Alaska needs real sustainable revenue and we must choose the least regressive
path forward.
I oppose a statewide sales tax, I support restoring oil taxes,
I supports a progressive income tax and I
oppose eliminating corporate taxes.
Sales taxes don't hit corporations first, they hit families.
They raise the cost of groceries, diapers, gas, and school supplies.
They force working people to choose between food, rent, medicine,
and keeping the life on while large companies continue to receive tax breaks.
That is not fiscal responsibility but is shifting the burden downward.
In Mountain View I see exactly what this does. Families are already stretched beyond stretch.
Elders are choosing between prescription and groceries. Parents are
already juggling multiple jobs just to survive. A sales tax doesn't just inconvenience communities
like mine, it harms them. As a new small business owner, I know sales taxes are passed directly to
As a parent of five, I feel every increase as is at the register and as an educator,
I see the consequences of underfunding every day. Fewer supports burdened out staff,
overcrowded classrooms, and our kids are paying the price.
If we're serious about fairness, Alaska needs a progressive income tax, one that protects
low income families, scales with ability to pay, and includes non-resident workers who
benefit from our road schools and public services, not a flat tax.
Not a sales tax a Progressive Income Tax.
We also need to stop pretending corporate tax giveaways create prosperity.
Alaska tried that.
What we got and said were underfunded schools, aging infrastructures, workforce shortages and families leaving, revenue is not abstract, it determines whether children have counselors and whether communities remain stable.
We also need to stop this mixed messaging.
Alaskans being told that to protect the PFD, they must accept the sales tax, that is false.
We cannot be forced to choose between a dividend and a functioning state.
Tax big corporations restore oil taxes, implement a progressive income tax,
stop putting this burden on working families.
The PMP was never meant to replace a revenue system,
using it as leverage creates fear and division.
And I want to say this plainly.
Nobody in that legislator complained about receiving that $30,000 raise.
But when everyday Alaskans are asked to contribute through a fair system suddenly is controversial.
When we travel out of state, we pay into other states taxes.
People who come here to work should contribute to.
We must stop putting this on Alaskans alone.
I urge you to reject the statewide sales tax,
restore oil taxes, and adopt a progressive income tax.
Protect corporate taxes?
Choose the least regressive task.
I live in Mountain View.
Sales taxes hurt communities like mine first.
Don't make working families pay more,
so corporations pay less.
Thank you.
Thank you very much for calling in. I don't see any questions at the committee. Just so folks know
We only have five people in line here
We'll go till 7 30
The next three I have our Barbara Haney Rebecca Logan and Rebecca Braun
So with that Ms. Hainey calling him from North Pole if you can state your name affiliation
Breathing my name is Barbara. He needs I'm satisfied in my own behalf
and I'm trying to make sure that they're lost up.
Ms. Haney, if you could get a little bit closer to the mic.
How is it?
And please proceed.
Is it better?
Ah, yes, that's better.
Okay, so I guess that I am going to be a bit against the gray here.
I don't want to talk about the PSE issue so much,
but I think...
Looking at a sales tax statewide is actually quite appropriate when you consider the other
option is an income tax. So those are your two options. You are much better off with the sales
tax than an incomes tax, the wealthy can only find ways to avoid income taxes, but it's pretty
If you really, if you're poor and you are getting an EDC or you
are on welfare, you aren't going to pay sales taxes anyway.
And frankly, a 3% tax or a 4% cash,
you talking about a nickel, people aren t going
to work very hard to necessarily avoid that.
However, one of the things I do find problematic
a couple of things. First, there's no local government carve out, and I think that needs to be in
Facebook if you're going to have a state right back. Secondly, I
think it's a good idea.
Are you still there, Miss Haney?
Yes,
I am.
Did you have more or was that the conclusion of your testimony?
No, I was still talking.
Okay, go ahead.
Well, apparently, whatever I've got to say is following them this year.
So, thank you very much. I sense you've been failing.
Have a great evening.
Okay. Thank you. Very much, Miss Haney for.
calling in. Was there a question? I don't, a
representative Galvin, do you have a
question.
Yeah, I just wanted to comment that I
think that there was a momentary shut down
on our system. So she may have felt like
we were hanging up on her. And I
just want to make sure that she knows
her voice matters. We were all listening
and we're grateful that. She called in
thank you, co-chair.
Thank you for that clarification,
Representative Galvan. Don't see any
questions. Did you ever question
Next we have Rebecca Logan, Rebecca Braun, and then Lori Strickler, Ms. Logan if you're
there calling you from Anchorage if can state your name and affiliation.
Yes, for the record, my name is Rebecca Logan and I'm calling in as an Anchorage citizen
tonight.
And after listening to all the testimony, I might have the easiest request for all of
you that anybody put forward tonight and my simple request tonight is that you follow
You noticed this hearing as being a hearing for people to testify on HB 284 and there were no side bars
About it what you could testify. I know it was the entire bill
So tonight when people called in and were waiting to testify
I'm sure many people were surprised to hear that it
Was limited to the sales tax portion of the bill in fact
I knew that at least for the people that you thought you lost on the phone hung up because you told them that they could not testify
And yet, as you let testimony continue, you clearly let people testify on things that didn't have anything to do with the sales tax.
So that's my simple request. Please follow the rules that you set for all of us to follow.
And I'd like to close by saying thank you for the opportunity to testify, but unfortunately,
you did not give us the opportunities to get testified.
Thank you. I'm going to go to questions.
I think there might be a couple of questions,
We ran out of time this morning to take up the other two sections
of the bill including oil and taxes as well as the corporate income tax.
So we're going to come back to those pieces next week and then we are going
to be taking public testimony on those.
I think, was there a comment, representative Bynum?
Thank you.
Coach Foster, I was just wondering if the testifier had anything specific
that they would like to share other than that.
No, I do not. We'll wait until the other opportunities.
Thank you.
Okay.
But I just think it's disrespectful to business people who don't know that you did that during the day
to make the changes when they've already called in and I actually know two people
who stepped up outside of their important meetings to testify so that their voices could be heard and only to hear a
chair of the committee tell them that they would not be accepting their testimony.
Yeah, I mean happy to take that testimony now also
For folks just listening for anybody folks can submit written testimony to house top finance at aka leg.gov
But yeah, we'll do the best we can and welcome back to that next week. So
Next up we have Rebecca Braun Lori Strickler and then rounding out the evening will be Leon James
Ms. Braun if you're there if put yourself on the record
Hi, thank you. Can you hear me? Yes, we can.
Um, thanks. This is Rebecca Brown and I'm on to dinner residence. Thanks for the opportunity to testify.
Um my high school science teacher had a sign above the store that said, Tom Stoffel.
There was an acronym that stood for it. There ain't no such thing as a pre lunch.
And it's really not simple. In my view,
So, I appreciate this revenue conversation, but I don't support the governor's approach.
I oppose reducing corporate income taxes, that is needlessly charged our state of resources
and took more of the burden onto Alaskans.
I do not support a state sales tax as many have said tonight, it is really hard on municipalities
that rely on local sales taxes.
And it's very hard in rural Alaska where cost of goods is already so high.
Income taxes can be designed to protect low and middle-income
Alaskans and would be divestable off our federal taxes, so we're doing a federal tax burden.
And income tax would ensure we get a contribution from the 24 percent of our workforce that lives
out of state and makes their living off of resources and our services and often
We have the tools to solve our revenue problem.
We can close the S-Corp tax loophole tax out-of-state corporations doing online business in Alaska
and ineffective corporate tax credits.
And we have lowest individual tax burden in the nation.
And I believe we could sustain a lot of progressive income tax.
In short, we really have tools.
We need the leadership and the courage to generate the revenue that will enable our state to thrive.
Thank you very much, Ms. Braun. I don't see any questions at the committee
Want to note that we had representative Johnson come in to join us earlier and thank you for being here this evening
We have the last two I've got on the list here are Laurie Strickler and Leon James
Laurie stricklar calling him from Bethel if you can put yourself on The record
Thank You my name is Laurie Fricklor and I'm the city manager for the City of Betheld
I'm calling from a basketball game, so if it gets throughout, yeah, I apologize.
I am calling to testify against proposed House Bill 2804.
As you know, the cost of living in Bethel and other rural Alaska communities is already
fired than what many people can afford.
This tax would disproportionately impact people living
in rural Alaska and make life even less affordable to choose to call these communities home.
The rising cost of living is already forcing people to leave this region,
and we should be working to prevent this outward migration,
and it can be easier for people
to live, work, and thrive in these rural Alaska communities.
I understand that the state is facing a budget crisis,
and that it's difficult decisions that need to be made.
However, a regressive tax is not the solution,
and will not help Alaska enlarge.
and I do appreciate your time this evening and thank you for all that you do to support our state.
Okay. Thank you very much, Representative Jimmy.
Thank You, Mr. Foster. I just wanted to send out my appreciation to you to Mrs. Litt Stikler
for calling in and giving that good testimony. Go on our check in our book.
Thank, Miss. thank You Miss Strickler. Last step, I've got Leon James calling you from Anchorage.
if you could put yourself on the record?
Hello, thank you for taking that testimony.
My name is Leon Highness, and I'm from Anchorage.
I am opposed to a sales tax under this bill.
I think it would disproportionately hurt,
you know, rural Alaskans and people of lower income.
And I was looking at some of the sales taxes exemptions.
And while still is sales tax, and there's things like child and daycare services,
there is medical supplies, postage and shipping and
shipping supplies. All of these things that are uniquely
more common in Alaska, I think, that wouldn't be exempted in the proposed sales taxes.
You know, on top of that is one of the callers earlier was pointing out that, you know when goods get to rural Alaska, they're already cost us to mix them up more and energy costs and none of none
of those is exempted and so I would just urge you all to oppose this. Thank you.
Okay.
Do we have any questions?
Seeing no questions.
Thank very much for calling in.
scheduled for public testimony, and we might have folks calling a little later.
So we'll come back and say 15 minutes, I'll put us at 7.25 and see if we've got anyone else,
and if not, then we will go ahead and adjourn out for the evening.
So with that, we're going to take a brief at ease.
Okay, thanks everybody for coming back here the time of 7 28 p.m. House finance and
we're taking public testimony and
We have three more people online that Steven Tom's from Burchwood Jim Haslett and Doug
Goring and so with that, I would like to just checking in on the room here really quick
If we could first go to Steven Thomas and
Mr. Tom's if you can put yourself on the record state your name and your affiliation and proceed with your testimony, and thank you for joining us this evening.
Mr Mr Tom so sorry, are you on a speaker possibly it just coming in very muffled. Yeah, hold on.
Okay. Oh, that's great. Thank you.
I
Want to express my opinion on the oil tax
I would like to see
the Oil tax go back to
Cree
There was a couple of ministrations that had cut the oral tax and
As a result no words last almost 20 years
We have seen that the legislature is dipping into permanent fund to pay for services that
the oil tax should be paying for.
I'd like to see the old standard reinstated and also the
we shouldn't have it if we reinstate the old oil tax.
Okay, thank you very much, Mr. Tom's.
I don't see any questions.
I believe that was the conclusion
of your testimony and yeah.
Okay.
And that's it, yeah,
thank-you.
Okay thank, you pretty much.
With that, next up we have Jim Haslett calling in from
Walsilla if you can state your name and your affiliation.
Yes. Hello, this is Jim Hayzer,
the four-year-old asking the interior in South Central.
Here's my thoughts on our current situation.
I'll ask the sales tax.
That's not a bad idea if we're smart enough to charge it to non-residents,
not to residents,
simple driver's license to solve that problem.
But anyway, that's working other times in Alaska seasonally.
I don't know if the state's smart enough to duplicate that, but it's work for Homer at least.
Another thought is, why are we considering the sales tax at all?
When we have people coming up here, someone earlier said 24%, I know that numbers are accurate or not.
There's a whole lot of folks who come up from outside,
Make your money on a slope, fly back out,
don't pay a penny in income tax.
Now, I'm just not smart enough to figure out
why the legislature hasn't taken advantage of that
and said, hey, you're going to come up here.
You're gonna make money.
You need to pay income taxes.
Have the other state and you and I know I've done it.
Why aren't we that smart?
And what's that since I need two state
milk questions having once this for a while?
I just want you to know that you guys are not doing this.
By myself, I draw the money you need from somewhere besides the PFD and the General Fund.
We have options, we just have to be smart enough to take advantage of it.
Thank you very much, have a wonderful evening.
Okay, thank you for calling. I don't see any questions.
So lastly, will go to Doug Go-ring calling in from Fairbanks, if you can state your name
Yes. Hi, this is Doug Gary. I'm calling from some Fairbanks.
I am a 65 year resident of the state of Alaska and just wanted to provide some thoughts about
taxation and the connection to the PFD. As many of folks that have testified already
this evening, it pointed out sales tax is a pretty aggressive tax and it probably would
hit rural communities much harder than it hits more of urban communities in the State.
An income tax, on the other hand, would not be so regressive.
Either an income or a state sales tax would require a new state bureaucracy to implement.
So we're talking about another taxation agency that the state would have to fund and operate.
At the same time, we fund, of course, the permanent fund division.
So now we have one state agency handing money out and another state agencies collecting money.
It seems to me that something that should be considered again and I know this has been,
I think this is been looked at in the past, is trying to connect it to and instead of generating
a new state tax agent, tax agency, rather have the permanent fund distributed in a progressive,
And it would not bleed money out of the state in the form of federal income taxes.
As any relatively high-income person in Alaska knows, you send probably 25 or 30%
of each permanent fund to then check to the federal government.
So anyway, I think rather than creating a new taxation agency, if we could look at
Some sort of a progressive payout of the permanent fund dividend that would not harm rural residents,
would no harm low income or median median income residents but would only affect higher income
residents that can most afford that sort-of thing.
So it have the elements of non-regret regressivity such as income tax, but it wouldn't require
new state agencies to implement.
Thank you.
Great. Thank you very much. We do have a question representative style. I think coach your fosters the chair
I just want to thank you for calling in and your thoughtful testimony. Appreciate it
Okay, thank thank very very for cooling. Uh, I don't see anybody else. Have I missed anybody doesn't look like it
I, don t believe we have anybody, else in the room who'd like to testify
So, uh, with that I appreciate everybody who has called in, um, to test by
Our next meeting is scheduled for tomorrow, Friday, February 6th at 1.30pm and at that
meeting we'll hear budget overviews by the departments of natural, by
the Department of Natural Resources from Environmental Conservation and Fish and
Game. And so if there is nothing else to come before the committee, we will be
adjourned at 7.35pm. Thank you.