Alaska State Legislature
News from the House Majority

Jerry Ritter, House Majority Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

House Unanimously Passes HB 73, Extension of ASMI 1% Marketing Tax

House passes Hudson measure to enable harvesters to continue underwriting ASMI’s domestic salmon marketing efforts.

For Immediate Release: February 9, 1998 Contact: Melinda Hofstad at (907) 465-3744.

Juneau - On Monday, the Senate House unanimously passed House Bill 73, sponsored by Representative Bill Hudson (R-Juneau), which would extend the current 1% domestic salmon marketing assessment when the law will sunset on June 30, 1998. "This legislation is important to the future of a cohesive seafood industry in Alaska. ASMI is the glue that brings all elements of the industry, including processors, harvesters, retailers, brokers and regulating agencies together," Hudson said.

In 1981, seafood processors elected to tax themselves in order to form a single marketing voice for Alaska seafood. From 1981 - 1993 this tax, along with the state’s general fund appropriations was the basis for ASMI’s domestic market funding. As marketing pressure grew from the heavily subsidized farmed salmon industry, it became apparent that Alaska needed to increase its domestic marketing efforts. In 1993, in order to provide additional funding for this effort, a 1% salmon marketing tax was enacted by the legislature, stipulating that limited entry permit holders shall pay a market tax at the rate of 1% of the value of salmon that is either removed from the state or transferred to a buyer within the state. Current law will be repealed on June 30, 1998 unless legislation is passed to extend the tax.

"At a time when Alaska salmon harvests are at all time highs, and foreign produced salmon are threatening Alaska’s traditional markets, it is more essential than ever to increase our markets. Without ASMI’s marketing efforts there would be no united marketing effort for our salmon. HB 73 will enable harvesters to continue underwriting this valuable marketing program," said Hudson from his Juneau office.

# # #

Broadcast Note: An Audio Actuality is available by calling 1-800-478-6540.