AK HB5003

Establishes a 6 percent individual income tax on residents based on their total federal income tax and on nonresidents based on federal income tax attributable to Alaska-source income, effective January 1, 2018.

Allows residents a credit for taxes paid to other states on income derived from those jurisdictions, subject to limitations based on the ratio of out-of-state to total income.

Requires employers to withhold tax from employee wages and remit it to the state on the same schedule as federal withholding, with employers furnishing wage statements to employees.

Defines Alaska-source income to include compensation for services rendered in the state, income from Alaska property, business activities in the state, and other income with a taxable or business situs in Alaska.

Repeals existing provisions in AS 43.05.085 and AS 43.20.012(b)-(c) and grants the Department of Revenue authority to adopt necessary regulations and exemptions from procurement code requirements through July 1, 2018.