21 July 2016 Alaska Governor renews his call for a personal income tax Alaska Governor Bill Walker called the state legislature back into session in July to address the state's budget shortfall. It is the second special session of the year, after state lawmakers failed to address the budget shortfall during its regular 2016 session and first special session. In his proclamation, the governor renewed his call for the creation of a state personal income tax (see Tax Alert 2016-191{}) as a way to address the budget shortfall. In a recent news release, Governor Walker said, "With a $4 billion budget deficit, we must leave no stone unturned as we look for new ways to fund state government." During the regular 2016 legislative session and the first special session, the governor submitted his proposed bill to the legislature that would create a 6.0% personal income tax rate on residents and nonresidents. First special session HB 4004 would have required employers to withhold income tax from employee wages effective January 1, 2018. It is expected that the governor will transmit a bill with similar language during the second special session.
Document ID: 2016-1267 | ||||||||||||||||||||
