February 22, 2019 — Gov. Mike Dunleavy proposed legislation this week that would keep commercial fish tax revenue that has for years been shared with Alaska fishing communities in the state’s coffers instead, a move that mayors in some of those cities say would be devastating.
At play are two taxes: Alaska’s fisheries business tax, and the fishery resource landing tax. Dunleavy’s legislation would repeal the fisheries business tax allocation to municipalities and repeal revenue sharing for the fishery resource landing tax. Those shared funds go to local governments in communities where fish processing and landings occur.
Under the proposed bill, about $28 million would stay in the state’s general fund in fiscal year 2020 instead of being shared with communities.
Dunleavy’s plan to close a $1.6 billion state budget deficit includes deep cuts, especially in education and health care, and does not include new taxes. His proposed budget still needs to go through the Legislature.
The fish taxes are crucial to many small Alaska fishing communities. The fisheries business tax is levied on fish caught commercially in Alaska waters, and is based on the price paid to commercial fishermen for the raw resource. The fishery resource landing tax is levied on fish caught commercially in federal waters and landed in Alaska, based on its unprocessed value.