SB 135 revises Alaska’s revenue-sharing formulas for two fisheries-related taxes: the fisheries business tax and the fishery resource landing tax. The bill increases the share of tax revenue paid to municipalities in the near term, including unified municipalities, cities in the unorganized borough, cities within boroughs, and boroughs themselves. It also adjusts special transition formulas for newly incorporated boroughs, generally changing the percentages distributed over the first several years after incorporation.
The bill further changes how “additional refund” revenues are handled by directing a larger share of certain tax receipts to eligible municipalities, while also adding reporting and use requirements. Municipalities receiving these funds must submit annual reports to the legislature describing prior-year use of the money and any harbor maintenance or improvement projects funded by the revenue, with an exception for very small payments. The bill also states legislative intent that additional revenue should help maintain and improve harbor facilities where applicable, and it requires municipalities to dedicate 10 percent of the funds received under the affected sections to support or enhance commercial fishing.
Impact
SB 135 amends AS 43.75.130 and AS 43.77.060, which govern the distribution of fisheries business tax and fishery resource landing tax revenue to municipalities, and AS 43.75.137, which governs additional refunds to eligible municipalities. It changes the percentage splits among municipalities, boroughs, and cities, modifies special rules for newly incorporated boroughs, and adds new municipal reporting and spending requirements. The bill applies to tax revenue collected for tax year 2025 and later, with some reporting provisions effective February 1, 2026, and some distribution changes delayed until July 1, 2035.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a support package for coastal and fishing communities, with an emphasis on local harbor infrastructure and commercial fishing support. The sponsor is the Senate Rules Committee by request of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry, suggesting the bill is intended to respond to industry concerns. No committee transcript or vote record was provided, so there is no documented floor or committee opposition in the materials supplied.
Contention
The main policy tension in SB 135 is between increasing municipal shares of fisheries tax revenue and imposing new conditions on how those funds must be used and reported. Municipalities may welcome the larger revenue share, but some may object to the requirement that 10 percent be reserved for commercial fishing support and to the annual reporting mandate. Another possible point of contention is the bill’s delayed effective date for several distribution changes until 2035, which may reflect compromise over fiscal impacts or the timing of revenue shifts between local governments and the state.