AK HB250

Imposes a 6% state income tax on Alaska resident individuals based on their total federal income tax liability and on nonresident individuals earning income from Alaska sources based on the portion of federal income tax attributable to Alaska-source income.

Allows residents a credit against Alaska income tax for taxes paid to other states, territories, or U.S. possessions on income also subject to Alaska tax, limited to a ratio of out-of-state adjusted gross income to total adjusted gross income.

Requires employers to withhold and remit income tax from wages, salaries, and crew shares in commercial fishing, with employers furnishing employees an annual statement showing total wages and tax withheld.

Defines taxable income sources in Alaska to include compensation for services rendered in the state, income from property located in the state, business activities in the state, and income from trusts or estates with taxable situs in Alaska.

Takes effect January 1, 2017, and repeals certain prior tax credit provisions under Alaska's Net Income Tax Act.