AK HB4004

Establishes a 6 percent individual income tax on residents based on their total federal income tax liability and on nonresidents based on federal income tax attributable to Alaska-source income.

Allows residents a credit for income taxes paid to other states, territories, or U.S. possessions, limited to the proportion of out-of-state income to total income.

Requires employers to withhold income tax from wages and remit it to the Department of Revenue on a schedule determined by the department.

Defines Alaska-source income to include wages, business income, rental and royalty income, and income from property or activities with a taxable situs in the state, with residency determined by domicile, state residency claims, permanent fund dividend receipt, voter registration, or hunting/fishing licenses.

Takes effect January 1, 2018, with the Department of Revenue authorized to adopt implementing regulations.