AS Title 43, Chapter 75: Fisheries Business License and Taxes

Article 1. Taxes and Licenses. Chapter 75. Fisheries Business License and Taxes. Sec. 43.75.010. Fisheries business licenses. [Repealed, § 13 ch 79 SLA 1979.] Sec. 43.75.011. Fisheries business license. (a) A person engaging or attempting to engage in a fisheries business or in an activity described in AS 43.75.100 shall first apply for and obtain a license as provided in AS 43.75.020 . (b) The commissioner may assess a civil penalty against a person required to have a license under (a) of this section who fails to obtain the license. The civil penalty for a violation of (a) of this section may not exceed $5,000 the first time a civil penalty is assessed, $10,000 for a second assessment, $15,000 for a third assessment, $20,000 for a fourth assessment, and $25,000 for a fifth or subsequent assessment. The commissioner may not assess a person more than one civil penalty for a violation of (a) of this section in a 30-day period. (c) Proceedings to suspend or revoke a license under AS 43.75.020 (b)(3)(B) are governed by AS 44.62 . Sec. 43.75.015. Fisheries business tax. (a) A person engaged in a fisheries business is liable for and shall pay the tax levied by this section on the value of each of the following fisheries resources processed during the year at the rate set out after each: (1) salmon canned at a shore-based fisheries business — four and one-half percent; (2) salmon processed by a shore-based fisheries business, except salmon for which the tax is due under (1) of this subsection, and all other fisheries resources processed by a shore-based fisheries business — three percent; (3) fisheries resources processed by a floating fisheries business — five percent. (b) Instead of the taxes levied by (a) of this section, a person who processes a developing commercial fish species is liable for and shall pay a tax equal to (1) one percent of the value of the developing commercial fish species processed by a shore-based fisheries business during the year; and (2) three percent of the value of the developing commercial fish species processed by a floating fisheries business during the year. (c) A person engaging or attempting to engage in a fisheries business who first actually and physically processes the fishery resource, or a person who purchases a fishery resource that is processed from a person excluded by AS 43.75.017 from liability for the tax, is liable for and shall pay to the department the entire tax imposed by this section. In determining this tax liability, the person may deduct from the value of the fishery resources processed the value of fishery resources that are canned or processed for other fisheries businesses. A person taking the deduction authorized by this subsection shall report all information relating to the deduction in accordance with regulations adopted by the department. (d) Instead of the taxes levied under (a) or (b) of this section, a person who processes a fishery resource under a direct marketing fisheries business license is liable for and shall pay a tax equal to (1) one percent of the value of the developing commercial fish species processed during the year; and (2) three percent of the value of a commercial fish species not subject to (1) of this subsection. (e) For purposes of determining the value of a fishery resource on which a tax is levied under this section, the department may establish a presumption of market value for a fishery resource in a region or market area based on a volume weighted average of market values for the fishery resource reported on returns filed under this chapter by fisheries businesses operating in the region or market area. A taxpayer who appeals an assessment of taxes based on a presumption of market value determined by the department under this subsection may rebut the presumption with substantial evidence of (1) the prevailing price paid to fishermen for the fishery resource of the same kind and quality by fisheries businesses in the same region or market area where the fishery resource was taken, if the taxpayer holds a direct marketing fisheries business license under AS 43.75.020 (c) and the fishery resource on which the tax is levied is processed under that license; or (2) the true market value of the fishery resources if the taking of the fishery resource is done in a company-owned or company-subsidized boat operated by employees of a fisheries business, a subsidiary of the fisheries business, or a parent company of the fisheries business. Sec. 43.75.017. Exclusion from fisheries business tax. A person is not liable for the fisheries business tax under AS 43.75.015 when the fishery resource is processed aboard a fishing vessel if (1) the vessel is operated as a commercial fishing vessel under a valid commercial fishing license; (2) the fishery resource is not processed beyond heading, gutting or cleaning, freezing, and glazing; (3) the fishery resource was caught by the vessel; and (4) the fishery resource is sold to a fisheries business licensed under this chapter. Sec. 43.75.018. Fisheries business education credit. [See delayed repeal note.] (a) A person engaged in a fisheries business is allowed a credit against the tax due under this chapter for (1) contributions of cash or equipment accepted for direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation, by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association, or by a public or private nonprofit elementary or secondary school in the state; (2) contributions of cash or equipment accepted for secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) contributions of cash or equipment accepted for vocational education courses, programs, and facilities by a state-operated vocational technical education and training school; (4) contributions of cash or equipment accepted for a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association or by a public or private nonprofit elementary or secondary school in the state; (5) contributions of cash or equipment accepted for Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) contributions of cash or equipment accepted for education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; (7) contributions of cash or equipment accepted for the Alaska higher education investment fund under AS 37.14.750 ; (8) contributions of cash or equipment accepted for funding a scholarship awarded by a nonprofit organization to a dual-credit student to defray the cost of a dual-credit course, including the cost of (A) tuition and textbooks; (B) registration, course, and programmatic student fees; (C) on-campus room and board at the postsecondary institution in the state that provides the dual-credit course; (D) transportation costs to and from a residential school approved by the Department of Education and Early Development under AS 14.16.200 or the postsecondary school in the state that provides the dual- credit course; and (E) other related educational and programmatic costs; (9) contributions of cash or equipment accepted for constructing, operating, or maintaining a residential housing facility by a residential school approved by the Department of Education and Early Development under AS 14.16.200 ; (10) contributions of cash or equipment accepted for childhood early learning and development programs and educational support to childhood early learning and development programs provided by a nonprofit corporation organized under AS 10.20 , a tribal entity, or a school district in the state, by the Department of Education and Early Development, or through a state grant; (11) contributions of cash or equipment accepted for science, technology, engineering, and math programs provided by a nonprofit agency or a school district for school staff and for students in grades kindergarten through 12 in the state; (12) contributions of cash or equipment accepted for the operation of a nonprofit organization dedicated to providing educational opportunities that promote the legacy of public service contributions to the state and perpetuate ongoing educational programs that foster public service leadership for future generations of residents of the state; (13) contributions of cash or equipment accepted for the operation of a nonprofit educational resource center that supports academic achievement in grades nine through 12 by coordinating curricula and statewide competition in the subject areas of economics, science, social science, literature, music, art, mathematics, writing, speech, and interview skills and by providing student scholarships; (14) expenditures made to operate a child care facility in the state for the children of the person's employees; (15) contributions of cash or equipment accepted by a child care facility in the state operated by a nonprofit corporation and attended by one or more children of the person's employees; and (16) a payment to an employee of the person's business made by the person for the purpose of offsetting the employee's child care costs incurred in the state. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.070 , AS 43.20.014 , AS 43.55.019 , AS 43.56.018 , AS 43.65.018 , or AS 43.77.045 , result in the total amount of the credits exceeding $3,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $3,000,000 for the affiliated group; in this paragraph, “affiliated group” has the meaning given in AS 43.20.145 . (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) Beginning January 1, 2030, and every five years thereafter, the Department of Labor and Workforce Development shall adjust the dollar limit on credits under (d) of this section for inflation, using 100 percent of the change over the preceding five calendar years in the Consumer Price Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor Statistics, United States Department of Labor. (h) In this section, (1) “dual-credit student” means a secondary level student in the state who simultaneously earns college and high school credit for a course; (2) “nonprofit organization” means a charitable or educational organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (3) “school district” has the meaning given in AS 43.20.014 ; (4) “vocational education” has the meaning given in AS 43.20.014 . Sec. 43.75.019. Alaska veterans' memorial endowment fund contribution credit. [Repealed, § 25 ch 46 SLA 2002.] Sec. 43.75.020. Application for license. (a) Application for a license shall be filed with the department and accompanied by an annual fee of $25. A separate annual fee is required for each plant specified in the application covered by the license. The application must contain the name of the applicant, the line of business to be licensed, place of business, and other facts that the department prescribes. The applicant shall state that the applicant, as a condition of obtaining and maintaining the license, agrees to pay (1) the taxes levied under this title, and that the applicant will make a return and pay the taxes at the time provided by law; (2) any seafood marketing assessment levied under AS 16.51 ; (3) contributions imposed under AS 23.20 (Alaska Employment Security Act); (4) any administrative penalties assessed under AS 18.60.093 for a violation of a provision of AS 18.60.010 — 18.60.105; (5) any applicable fishery sales, use, or severance taxes imposed by a municipality in the state; and (6) any industry fee levied under a fishing capacity reduction program authorized under 16 U.S.C. 1861a (Magnuson-Stevens Fishery Conservation and Management Act). (b) Upon receipt of an application in proper form under (a) or (c) of this section, accompanied by the annual fee, the department shall issue the license if the (1) applicant has paid in full, including interest and penalties, the following: (A) taxes levied under this title; and (B) any assessments under AS 16.51 ; (2) department has not received notification from the Department of Labor and Workforce Development that the applicant has failed to pay in full (A) an assessment of delinquent contributions that is final under AS 23.20.205 (c) or 23.20.220(c); or (B) an administrative penalty that is final under AS 18.60.093 or 18.60.097; and (3) department has not received a copy of (A) a final judgment obtained against the applicant for unpaid fishery sales, use, or severance taxes imposed by a municipality in the state; (B) a final administrative determination against the applicant from a municipality in the state for unpaid fishery sales, use, or severance taxes imposed by the municipality; the administrative determination must be accompanied by a certification by the municipality that the municipal administrative process is consistent with constitutional requirements of due process and that the applicant has exhausted all administrative remedies under the applicable municipal administrative process; or (C) a final administrative determination against the applicant from the National Marine Fisheries Service for unpaid industry fees levied under a fishing capacity reduction; the administrative determination must be accompanied by a certification by the National Marine Fisheries Service that the federal administrative process is consistent with constitutional requirements of due process and that the applicant has exhausted all applicable administrative remedies. (c) Instead of a license issued under (a) of this section, the department may issue a direct marketing fisheries business license to a licensed commercial fisherman who processes fishery resources caught using a vessel that does not exceed 65 feet in overall length and is owned or leased by the commercial fisherman. The licensee may place into commerce in the state and outside of the state processed or unprocessed fishery resources caught using the vessel described in the license. Fishery resources that are caught using the vessel and owned by the licensee from the time of harvest through sale, as defined by the department by regulation, may be processed by the licensee on the vessel, at a shore-based facility, or by means of custom processing services obtained by the licensee. An application for a direct marketing fisheries business license shall be filed with the department and accompanied by an annual fee of $25. A separate direct marketing fisheries business license and annual license fee are required for each vessel on which processing is performed. The application must state the name and address of the applicant, the fishery resources for which the applicant holds a commercial fishing entry permit or interim-use permit or quota share, a description of the vessel and each shore-based facility where the applicant will process fishery resources, and other information that the department prescribes by regulation. The application must state that the applicant, as a condition of obtaining and maintaining the license, agrees to pay the taxes, assessment, employment security contributions, and penalties as set out in (a)(1) — (5) of this section. A person who holds a direct marketing fisheries business license may not under that license (1) purchase fishery resources for resale or processing for sale; or (2) process fishery resources for another licensed commercial fisherman or for a fisheries business licensed under this chapter. In this subsection, “licensed commercial fisherman” means a natural person who holds a commercial fishing entry permit or interim-use permit issued under AS 16.43 or a quota share issued under federal law. Sec. 43.75.030. Filing return and payment of tax. (a) A person subject to the tax shall file a return stating the value of fisheries resources processed during the license year, computed as required by this chapter, and such other information as the department prescribes by regulation. The return must show the license number and must be signed by the taxpayer or an authorized agent, under penalty of unsworn falsification in the second degree. If a receiver, trustee, or assign is operating the property or business, that person shall file the return for the person. A tax due on the basis of such a return shall be collected in the same manner as if collected from the person of whose business the receiver, trustee, or assign has custody and control. (b) The return shall be made on a calendar year basis and submitted to the department before April 1 after the close of the calendar year. (c) The department may adopt regulations for the granting of a reasonable extension of time for filing and may grant an extension of time for filing. (d) Except for tax paid monthly under AS 43.75.055 (c)(1), the tax shall be paid before April 1 after the close of the calendar year. (e) Every person engaging or attempting to engage in a business for which a license is required under this chapter shall keep records, make statements under oath, file returns, and comply with all regulations that the commissioner may adopt. (f) When the department considers it is necessary, it may require a person, by notice served upon the person, to file a return, make such statements under oath, or keep and display to it such records as it considers sufficient to show the tax for which the person is liable. If a person fails to file a return as prescribed by law or by regulation, or makes, wilfully or otherwise, a false or fraudulent return, the department shall make the return from the information that it can obtain. A return made by the department is prima facie good and sufficient for all legal purposes. Sec. 43.75.032. Tax credit for scholarship contributions. Sec. 43.75.034. Tax credit report. [Repealed, § 8 ch 79 SLA 1986.] Sec. 43.75.035. Salmon and herring product development tax credit. Sec. 43.75.036. Salmon utilization tax credit. [Repealed, § 20, 34, ch 61, SLA 2014.] Sec. 43.75.037. Fisheries product development tax credit. (a) Except as provided in (f) of this section, a taxpayer that is a fisheries business may claim a fisheries product development tax credit of 50 percent of qualified investment in new property first placed into service in a shore-based plant or on a vessel in the state in the tax year. (b) The amount of the tax credit applied against taxes under this section may not (1) exceed 50 percent of the taxpayer's tax liability incurred under this chapter for processing of eligible fish during the tax year; or (2) be claimed for property first placed into service after December 31, 2026. (c) If the property for which a tax credit is claimed is installed on a vessel, the amount of qualified investment under (a) of this section is determined by multiplying the investment cost of the qualified investment property by a fraction, the numerator of which is the weight of raw eligible fish processed on the vessel by the taxpayer in the state in the tax year in which the property is first placed into service, and the denominator of which is the weight of raw eligible fish processed on the vessel by the taxpayer in and outside of the state in the tax year in which the property is first placed into service. In this subsection, “eligible fish” does not include pollock, sablefish, or Pacific cod. (d) An unused credit under this section may be carried forward and applied against the tax liability incurred on eligible fish in the following three tax years. (e) Qualified investment costs on which a tax credit is claimed under this section may not be considered for another tax credit in this title. (f) A taxpayer may not claim the tax credit allowed under this section (1) if the taxpayer is in arrears in the payment of assessments under AS 16.51.120 , contributions under AS 23.20 , or taxes or assessments collected or owed under this title; for purposes of this paragraph, a taxpayer is not in arrears if the liability for the assessment, contribution, or tax is under administrative or judicial appeal; (2) for property that is the same type of property as property (A) on which a tax credit has been claimed under this section; (B) that has been removed from the state; and (C) that was purchased in the previous 10 years; or (3) for property installed on a vessel used primarily to process pollock, sablefish, or Pacific cod. (g) If, during a tax year, property for which a credit was claimed under this section is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state, the tax due under this chapter is increased by the recapture percentage of the aggregate decrease in the credit allowed under this section for all prior tax years that would have resulted solely from reducing to zero the credit allowed for the qualified investment property under this section. The amount of tax credit attributable to the qualified investment that is carried forward from prior tax years is terminated as of the first day of the tax year in which the qualified investment property is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state. For purposes of this subsection, (1) the recapture percentage during the year in which the property is first placed into service or during the first year following the year in which the property is first placed into service is 100 percent; (2) the recapture percentage during the second year following the year in which the property is first placed into service is 75 percent; (3) the recapture percentage during the third year following the year in which the property is first placed into service is 50 percent; (4) the recapture percentage during the fourth or later year following the year in which the property is first placed into service is zero percent; (5) qualified investment property used on a vessel is considered to have been removed from the state on the first day of a tax year in which the proportion of raw eligible fish processed in the state on the vessel is less than 50 percent of total weight of raw eligible fish processed on the vessel in and outside of the state. (h) The amount of a tax credit recaptured under (g)(1) — (3) of this section may not be included in the determination of the amount of that tax credit that is allowable under this section. (i) The department shall develop and implement procedures by which a taxpayer that is a fisheries business may submit the taxpayer's proposed investment to the department and request a preliminary determination of whether the investment qualifies for the fisheries product development tax credit under this section. A preliminary determination by the department that the taxpayer's submission qualifies for the credit is binding, unless the department determines that the taxpayer has made a material misrepresentation in the taxpayer's submission. (j) To claim a credit under this section, a taxpayer shall agree that the department may make public the number of recipients and the total amount of tax credits claimed for each type of eligible fish. Notwithstanding any contrary provision in AS 40.25.100 or AS 43.05.230 , the number of recipients and the total amount of tax credits claimed for each type of eligible fish is public information. (k) In this section, (1) “eligible fish” means, except as otherwise provided in (c) of this section, salmon, herring, pollock, sablefish, or Pacific cod; (2) “first placed into service” means the moment when property is first used for its intended purpose; (3) “new property” means property whose original use begins with the taxpayer and does not include property first used by another person; (4) “qualified investment” means the investment cost to purchase or convert depreciable tangible personal property with a useful life of three years or more to be used predominantly to perform an ice-making, processing, packaging, or product-finishing function that is a significant component in producing a value-added eligible fish product, including canned salmon products in can sizes other than 14.75 ounces or 7.5 ounces; in this paragraph, “property” (A) includes (i) equipment used to fillet, skin, portion, mince, form, extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, package, freeze, scale, grind, separate meat from bone, or remove pin bones; (ii) new parts necessary for, or costs associated with, converting a canned salmon line to produce can sizes other than 14.75 ounces or 7.5 ounces; (iii) conveyors used specifically in the act of producing a value-added eligible fish product; (iv) ice-making machines; (v) new canning equipment for herring products; and (vi) equipment used to transform eligible fish byproduct that is discarded as waste into saleable product; (B) does not include (i) vehicles, forklifts, conveyors not used specifically in the act of producing a value-added eligible fish product, cranes, pumps, or other equipment used to transport eligible fish or eligible fish products, knives, gloves, tools, supplies and materials, equipment, other than ice-making machines, that is not processing, packaging, or product-finishing equipment, or other equipment, the use of which is incidental to the production, packaging, or finishing of value-added eligible fish products; (ii) the overhaul, retooling, or modification of new or existing property, except for new parts necessary for, or costs associated with, converting a canned salmon line to produce can sizes other than 14.75 ounces or 7.5 ounces; or (iii) property used predominantly to produce an eligible fish product that is not taxed under this chapter; (5) “tax liability” means the liability for all taxes under this chapter before all credits allowed by this chapter; (6) “useful life” means the useful life of the property that is or would be applicable for purposes of depreciation; (7) “value-added eligible fish product” means the product of an eligible fish that is processed beyond heading, gutting, or separation in a manner that enhances the value or quality of the eligible fish product, such as shelf-stable, retort pouched, smoked, pickled, or filleted eligible fish, ikura, leather, jerky, or a saleable product made from waste byproduct of eligible fish; “value-added eligible fish product” does not include an eligible fish or eligible fish product that (A) has been subjected to only one or more of heading, gutting, freezing, or packaging; (B) is salmon skeins or other unprocessed salmon or unprocessed eligible fish products, whether fresh or frozen; or (C) is produced outside of the state. Sec. 43.75.050. Violations and penalties. [Repealed, § 4 ch 94 SLA 1976; § 3 ch 166 SLA 1976; §§ 45, 46 ch 113 SLA 1980. For current law, see AS 43.05.220 and 43.05.290.] Sec. 43.75.055. Security for collection of taxes. (a) An applicant for a license under this chapter shall, in or with the application, state under oath the amount of each of the products that the applicant expects to produce during the license year. The applicant shall further state the extent of lienable real property owned by the applicant in the state against which the tax may be collected and other information with respect to description, location, and value of the property that the department prescribes. (b) Except as provided in (c) and (e) of this section, if the lienable value of the property is not equal to three times the amount of the tax for which the applicant will probably be liable under this section, the department may not issue the license until the applicant files with the department a surety bond approved by the attorney general in a penal sum equal to twice the probable amount of the tax for which the applicant will be liable, conditioned upon payment of the tax in full when due, with interest and penalties if not paid before delinquency. (c) An applicant may elect to avoid the requirements of (a) and (b) of this section if the applicant (1) files a report as prescribed by the department and pays the taxes due under this chapter on or before the 15th day of the month following the month in which liability for the payment of the taxes was incurred; (2) pays the taxes and assessments for which the applicant is liable under AS 16.51 , AS 43.76 , and AS 43.77 on or before the 15th day of the month following the month in which the liability for the payment of the taxes or assessments was incurred; (3) remits to the department the taxes and assessments that the applicant is required to collect under AS 43.76 on or before the 15th day of the month following the month in which the taxes or assessments were required to be collected; and (4) either (A) files a bond in the amount of $50,000; or (B) provides the department with proof that the applicant is the owner of lienable real property in the state of a value of at least $100,000. (d) A bond filed under (c) of this section must be conditioned upon the payment of the taxes under (c)(1) of this section in full when due. (e) The department may waive the bond requirement under (b) or (c) of this section if the applicant posts other security in the form of collateral acceptable to the department or prepays the estimated tax. (f) An applicant that fails to pay amounts due under this section is subject to civil penalties set out under AS 43.05.220 . (g) Real property, a surety bond, or other security being used to secure payment of the tax for the year preceding the application year may also be used to secure payment of the estimated tax for the application year if the security is acceptable to the department and the applicant has not failed to pay a tax under this chapter in a timely manner during any of the three years preceding the application year. Secs. 43.75.060 — 43.75.095. Cold storage and other fish processors. [Repealed, § 13 ch 79 SLA 1979.] Article 2. Fisheries Products Sold Outside Taxing Jurisdiction. Sec. 43.75.100. Tax imposed on taking of fishery resource. (a) A person taking, purchasing, or otherwise acquiring a fishery resource that has not been subject to the tax imposed in AS 43.75.015 is subject to the tax levied in AS 43.75.015 on the value of the fishery resource if the person (1) transports the fishery resource to a point outside the taxing jurisdiction of the state for subsequent processing or sale outside the taxing jurisdiction of the state; (2) sells the fishery resource outside the taxing jurisdiction of the state; or (3) has the fishery resource processed by a fisheries business in the state. (b) The rate of tax that shall be paid by a person whose liability for the tax is established by this section is the rate of tax that would have been due under AS 43.75.015 if the fisheries business that first actually and physically processed the fish had been liable to pay the tax. Sec. 43.75.110. Return; payment of tax. A person subject to taxes under AS 43.75.100 shall make a return stating the value of fisheries resources taken, purchased, or otherwise acquired during the license year for sale to fisheries businesses outside of the taxing jurisdiction of the state computed as required by AS 43.75.100 , and other information to carry out the provisions of AS 43.75.100 as may be prescribed by the department. The return must contain the license number and must be signed by the taxpayer or an authorized agent, under penalty of unsworn falsification in the second degree. If a receiver, trustee, or assign is operating the property or business, that person shall make the return for the person. A tax due on the basis of such return shall be collected in the same manner as if collected from the person of whose business the receiver, trustee, or assign has custody and control. The requirements for time and place of payment of tax, and the obligation to keep records and make the records available to the commissioner are the same as those prescribed in AS 43.75.011 — 43.75.050. Sec. 43.75.120. Violations and penalties. [Repealed, § 46 ch 113 SLA 1980. For current law, see AS 43.05.220 and 43.05.290.] Article 3. Refunds to Local Governments. Sec. 43.75.130. Refund to local governments. (a) Except as provided in (d) of this section, the commissioner shall pay (1) to each unified municipality and to each city located in the unorganized borough, 50 percent of the amount of tax revenue collected in the municipality from taxes levied under this chapter; (2) to each city located within a borough, 25 percent of the amount of tax revenue collected in the city from taxes levied under this chapter; and (3) to each borough (A) 50 percent of the amount of tax revenue collected in the area of the borough outside cities from taxes levied under this chapter; and (B) 25 percent of the amount of tax revenue collected in cities located within the borough from taxes levied under this chapter. (b) [Repealed, § 20 ch 61 SLA 2014.] (c) [Repealed, § 7 ch 79 SLA 1986.] (d) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, the commissioner shall pay (1) to each city that is located in a borough incorporated after June 16, 1987 the following percentages of the tax revenue collected in the city from taxes levied under this chapter: (A) 45 percent of the taxes collected during the calendar year in which the borough is incorporated; (B) 40 percent of the taxes collected during the first calendar year after the calendar year in which the borough is incorporated; (C) 35 percent of the taxes collected during the second calendar year after the calendar year in which the borough is incorporated; and (D) 30 percent of the taxes collected during the third calendar year after the calendar year in which the borough is incorporated; and (2) to each borough that is incorporated after June 16, 1987 the following percentages of the tax revenue collected in the cities located within the borough from taxes levied under this chapter: (A) 5 percent of the taxes collected during the calendar year in which the borough is incorporated; (B) 10 percent of the taxes collected during the first calendar year after the calendar year in which the borough is incorporated; (C) 15 percent of the taxes collected during the second calendar year after the calendar year in which the borough is incorporated; and (D) 20 percent of the taxes collected during the third calendar year after the calendar year in which the borough is incorporated. (e) Notwithstanding the provisions of (d) of this section, a city may adopt an ordinance to transfer a portion of the funds received under (d)(1) of this section to the borough in which the city is located. (f) [Repealed, § 3 ch 57 SLA 2003.] (g) [See delayed repeal note.] For purposes of this section, tax revenue collected under AS 43.75.015 from a person entitled to a credit under AS 43.75.037 is calculated as if the person's tax were collected without applying the credit. Tax revenue collected does not include the amount of a tax credit recaptured under AS 43.75.037 (g). (h) [See delayed repeal note.] In this section, “tax revenue collected” includes the amount credited against taxes under AS 43.75.018 . Sec. 43.75.133. Provision of information to municipalities. (a) If the mayor, manager, or administrator of a municipality makes a written request, the department shall furnish the mayor, manager, or administrator of the municipality the names of all fisheries businesses that have filed tax returns under this chapter in which the fisheries business listed the municipality as the location in which the fisheries business processed a fisheries resource subject to the tax imposed under this chapter. (b) If the mayor, manager, or administrator of a municipality makes a written request, the department shall verify that, as to a tax levied and collected by the municipality that is based on the value of fisheries resource processed in or transported to or within the municipality, the value of the fisheries resources reported by a fisheries business to the municipality and the value of the fisheries resources reported by the fisheries business to the department under this chapter are substantially the same. If the values are not substantially the same, the department shall permit the mayor, manager, or administrator of the municipality to inspect tax returns filed by the fisheries business with the department under this chapter, or shall furnish to the municipal officer a copy of the tax returns, if the department determines that the municipality provides adequate safeguards for the confidentiality of the returns and that the returns will be used by the municipality only for purposes of collection of its tax levied and collected on fisheries resources. In this subsection, the value of the fisheries resources reported by the fisheries business to the department and the value reported to the municipality are substantially the same if the values are equal or the variance between them does not exceed one percent of the greater value. Sec. 43.75.135. Additional refund to boroughs and cities. [Repealed, § 13 ch 79 SLA 1979.] Sec. 43.75.136. Appropriations to Commercial Fishing and Agriculture Bank. [Repealed, § 20 ch 117 SLA 1981.] Sec. 43.75.137. Additional refund. To the extent that appropriations are available for the purpose, and notwithstanding the requirement of AS 37.07.080 (e) that approval of the office of management and budget is required, an amount equal to 50 percent of the tax revenue that is collected under this chapter from fisheries businesses and is not subject to division with a municipality under AS 43.75.130 shall be transmitted each fiscal year, without the approval of the office of management and budget, by the department to the Department of Commerce, Community, and Economic Development for disbursal to eligible municipalities under AS 29.60.450 . Sec. 43.75.140. [Renumbered as AS 43.75.290 .] Article 4. General Provisions. Sec. 43.75.290. Definitions. In this chapter, (1) “developing commercial fish species” means those species of fish and shellfish annually designated by the commissioner of fish and game under AS 16.05.050 (a)(10); (2) “fisheries business” means a person who engages in processing fisheries resources for sale by freezing, cooking, salting, or other method and includes but is not limited to canneries, cold storages, freezer ships, and processing plants; (3) “fishery resource” means finfish, shellfish, and fish by-products, including but not limited to salmon, halibut, herring, flounder, crab, clam, cod, shrimp, and pollock; (4) “floating fisheries business” means a fisheries business which is not a shore-based fisheries business; the term includes, but is not limited to, a shore-based fisheries business as defined in (5)(B) of this section when it is removed from the state; (5) “shore-based fisheries business” means a fisheries business (A) operated from a facility which is permanently attached to the land; or (B) operated from a facility which remains in the same location in the state for the entire tax year; (6) “taking” means pursuing, fishing, capturing, or harvesting a fisheries resource in any manner; (7) “value” means (A) the market value of the fishery resource as determined by the prevailing price paid to fishermen for the unprocessed fishery resource of the same kind and quality by fisheries businesses in the same region or market area where the fishery resource was taken if (i) the taking of the fishery resource is done in a boat owned or leased by a person who holds a direct marketing fisheries business license under AS 43.75.020 (c); and (ii) the fishery resource was sold to a buyer other than a fishery business licensed under AS 43.75.020 (a); (B) for fisheries resources other than those described in (A) of this paragraph, the market value of the fishery resource if the taking of the fishery resource is done in company-owned or company-subsidized boats operated by employees of the company or in boats that are operated under lease to or from the company or other arrangement with the company and if the fishery resource is delivered to the company; in this subparagraph, “company” means a fisheries business, a subsidiary of a fisheries business, or a subsidiary of a parent company of a fisheries business; “company” does not include a direct marketing fisheries business licensed under AS 43.75.020 (c); or (C) for fishery resources other than those described in (A) or (B) of this paragraph, the actual price paid for the fishery resource by the fisheries business to the fisherman, including indirect consideration and bonus amounts paid for fuel, supplies, gear, ice, handling, tender fees, or delivery, whether paid at the time of purchase of the fishery resource or tendered as a deferred or delayed payment; in this subparagraph, “delivery” means (i) transportation of the fishery resource from the boat or vessel on which the product was taken to a tender; or (ii) if delivery was not to a tender, transportation of the fishery resource from the boat or vessel on which the product was taken to a shore-based facility in which delivery of the fishery resource is normally accepted.