AK HB224

Changes the calculation of money available for distribution from the Alaska Permanent Fund from 21 percent of net income to 4.5 percent of the average market value of the fund balance over the first five of six fiscal years preceding the current fiscal year.

Establishes a new distribution account in the general fund to receive transfers from the earnings reserve account at the beginning of each fiscal year, replacing the previous system of transferring 50 percent of income to the dividend fund.

Allows permanent fund income available for distribution to be used to satisfy budget deficits in unrestricted general funds before any personal income tax can be implemented.

Caps permanent fund dividend payments at $2,000 maximum, with tiered limits ranging from $250 to $2,000 based on the combined value of the constitutional and statutory budget reserve funds.

Eliminates permanent fund dividends entirely if a personal income tax is assessed on state residents during the fiscal year in which dividends would be distributed.