Business License Fee Reduction in Alaska
Issue Overview: In 2003 Gov. Frank Murkowski introduced legislation to increase the business license fee from $25 per year to $200 per year. The Legislature ultimately passed legislation to increase the fee to $100 per year.
Reps. Jay Ramras and Bill Stoltze introduced HB 83, Sen. Gary Wilken introduced SB 24, Sen. Bill Wielechowski introduced SB 39, and Gov. Sarah Palin introduced HB 111 and SB 66, all proposing reducing the business license fee. HB 111 was chosen as the vehicle to address the issue.
HB 111 passed the House and was referred to the Senate Finance Committee. The bill reduces the fee to $50 per year and adds a civil fine for conducting a business without a license. It also allows two businesses to be listed under one business license.
While the amount of the fee is relatively small, the principle that fees should only cover the cost of the licensing activity is important. Business are paying almost twice that cost of the licensing program and the surplus is used to fund non-business related state services.
NFIB Position: Support.
Issue Status: HB 111 passed the Legislature with the active help of NFIB/Alaska and its membership. As this was a priority for the administration, we anticipate that it will be signed into law.
The reduction will begin with the 2009 licensing cycle.
