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[Repealed, § 20 ch 61 SLA 2014.]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[Repealed, § 7 ch 79 SLA 1986.]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.