28 March 2017 Alaska governor attempts again to institute a personal income tax HB 115 which would establish a personal income tax?on residents and nonresidents equal to?the greater of 15%?of?a?taxpayer's?federal?tax?liability or $25. Taxpayers would be allowed to direct the Alaska Department of Revenue to apply all or a portion of their annual permanent fund dividends to the personal income tax due each year. Effective January 1, 2018, the bill would require state income tax withholding by employers and remittance to the Department at intervals to be established by regulation. Employers would be required to provide an annual Form W-2 to employees. Taxpayers would be required to file an annual individual tax return each year, due on the same date as the federal income tax return. Governor Bill Walker has proposed the establishment of a personal income tax in his recent budget proposals as a method to reduce a deficit of nearly $3 billion. Go here for a press release on the introduction of HB 115. Last year, the governor had legislation introduced (HB 4004) that would have created a 6.0% personal income tax on residents and nonresidents. The bill failed to pass. Document ID: 2017-0548 |
