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AK SB227

AK SB227
Tax Compact; Sales Tax; Oil & Gas Tax


summary

Introduced
01/26/2026
In Committee
02/19/2026
Crossed Over
Passed
Dead

Introduced Session

34th Legislature

Bill Summary

An Act relating to the Multistate Tax Compact; relating to apportionment of income to the state; establishing a state sales and use tax; relating to taxes levied by cities and boroughs; relating to the corporate income tax; authorizing the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement or substantially similar agreement; relating to the oil and gas production tax; establishing an infrastructure maintenance surcharge on oil; establishing a pipeline corridor maintenance fund; and providing for an effective date.

AI Summary

This bill enacts several changes to Alaska's tax laws, including adopting the Multistate Tax Compact (MTC), which aims to standardize tax rules for businesses operating in multiple states to ensure fair apportionment of income and reduce duplicate taxation. It also establishes a new "education head tax" on wages and self-employment income, with revenue intended for public education, and introduces an infrastructure maintenance surcharge on oil production to fund pipeline corridor upkeep. The bill modifies corporate income tax provisions, including how income is apportioned for highly digitized businesses and those in the oil and gas sector, and introduces a new tax on certain "qualified entities" like sole proprietorships and partnerships, with specific tax brackets and rules for calculating taxable income. Additionally, it adjusts existing oil and gas production tax rates and payment procedures, and repeals several outdated tax credit provisions.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Rules (Senate)

Last Action

REFERRED TO FINANCE (on 02/19/2026)

bill text


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