Legislature(2015 - 2016)

2016-07-11 Senate Journal

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2016-07-11                     Senate Journal                      Page 3061
SB 5003                                                                                                                       
SENATE BILL NO. 5003 BY THE SENATE RULES COMMITTEE                                                                              
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
              "An Act establishing an individual income tax; and                                                               
          providing for an effective date."                                                                                     
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
Governor's transmittal letter dated July 8:                                                                                     
Dear President Meyer:                                                                                                           
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to establish an individual income                                                        
This is a necessary measure to address our fiscal situation. The bill                                                           
would establish a personal income tax of six percent of total federal                                                           
tax liability. I have chosen a structure similar to our State's prior                                                           
income tax, which was repealed in 1980. The bill would tax income                                                               
earned by residents and nonresident individuals with income from a                                                              
source in this state. Because the tax that would be established by the                                                          
bill is calculated based on federal tax liability and not on income, the                                                        

2016-07-11                     Senate Journal                      Page 3062
bill effectively incorporates federal brackets and exemptions and so                                                            
permits this bill, and the Alaska personal income tax system it would                                                           
create, to be as simple and transparent as possible and minimizes                                                               
administrative burdens both for the State and for taxpayers. The bill                                                           
would apply to income earned on or after January 1, 2018. In addition,                                                          
the bill would repeal a set of orphaned individual tax credits from the                                                         
former income tax.                                                                                                              
The citizens of our state are ready to pitch in to solve our fiscal crisis.                                                     
My measure is part of that solution. Together we can continue to                                                                
assure Alaska's strong and stable financial future.                                                                             
I appreciate your consideration of this issue, and urge your prompt and                                                         
favorable action on this measure.                                                                                               
Bill Walker