20 July 2017 Alaska personal income tax tabled for now as state narrowly averts government shut down HB 115, which called for the installation of a personal income tax, passed the House on April 16, 2017, but it failed to pass the Senate and was declared a dead bill on May 24, 2017. The Alaska House Majority Coalition plans to continue to promote the idea of establishing a broad-based tax (i.e., the establishment of a sales tax or personal income tax) as a solution to the state's budget deficit. According to Speaker of the House?Rep. Bryce Edgmon?(D-Dillingham), " … the job is only half done. We now call on the Senate Majority to join us in enacting a comprehensive fiscal plan." (See Tax Alert 2017-548 for more on the governor's state income tax proposal.) Alaska Governor Bill Walker announced that he had signed into law House Bill 57, approving the operating budget bill the legislature passed for fiscal year 2018 (July 1, 2017 — June 30, 2018) without vetoes. This action prevented a state government shut-down that would have occurred as of July 1 if an operating budget had not been enacted. The operating budget continues to make appropriations from the Constitutional Budget Reserve Fund to finance the state's $2.5 billion budget deficit. According to the governor's announcement, this leaves only $2 billion in the state's main savings account, an amount that may be exhausted during fiscal year 2019 if a compromise fiscal plan, to possibly include the establishment of a broad-based tax, is not enacted. Document ID: 2017-1180 |
