27 January 2016 Alaska governor urges adoption of modest personal income tax In his State of the State address on January 21, 2016, Governor Walker unveiled a New Sustainable Alaska plan that would, of significant note, impose a personal income tax of 6% of an individual's federal income tax. The tax would be effective January 1, 2017. (HB 250.) Walker explained that plummeting oil prices and a lack of adequate diversity in the state's economy has resulted in a 90% decline in revenues and a projected depletion in the state's savings within three years. While the Governor expressed his flexibility in arriving at a sustainable budget with lawmakers, he pointed out that, unlike a sales tax, the proposed personal income tax can be fairly shared both by residents and nonresidents who only work in Alaska. A copy of HB 250 is available here.
Document ID: 2016-0191 | ||||||||||||||||||||