Bill > HB152

This bill establishes a new education tax on individual income in Alaska, creating a 4% tax rate for individuals with taxable income over $150,000 for single filers or $300,000 for joint filers. The new tax applies to residents and nonresidents, with specific rules for calculating tax liability based on income source and residency status. Each individual will also be required to pay an annual flat tax of $150. The bill provides detailed provisions for how income will be calculated, including special rules for partnerships, S corporations, trusts, and estates. Notably, the tax collected will be deposited into a new early education fund, which the legislature may use to fund kindergarten through grade 12 education and early learning programs. Individuals will have the option to use their permanent fund dividend to pay this new tax. The tax is set to take effect on January 1, 2026, and will apply to income received on or after that date. The bill also includes complex definitions and calculations for determining residency, taxable income, and tax liability, drawing heavily on federal tax code definitions and provisions.

Government Affairs

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB152