Jan 22

Alaska—Bills Propose 6% Individual Income Tax in 2017, (Jan. 22, 2016)

Legislation has been introduced in the Alaska House of Representatives and the Alaska Senate that would impose a personal income tax on residents and nonresidents at a rate of 6% of the taxpayer’s total federal income tax liability, effective January 1, 2017. Employers would be required to withhold income tax from employee wages, salaries, and commercial fishing crew shares. Resident taxpayers would be entitled to claim a credit against their tax liability for the amount of tax paid to other states, territories, or possessions of the U.S. on income derived from sources in those jurisdictions. Alaska has not imposed an income tax on individuals since January 1, 1979.

H.B. 250 and S.B. 134, as introduced January 19, 2016