SB 134 Summary

• Establishes a new individual income tax in Alaska equal to 6% of federal income tax liability for resident individuals and 6% of federal income tax on Alaska-source income for nonresident individuals, effective January 1, 2017.

• Requires employers to withhold income tax from wages, salaries, and crew shares based on approximate annual tax liability and remit withheld amounts to the Department of Revenue.

• Allows resident individuals to claim a credit against Alaska income tax for taxes paid to other states, territories, or possessions on income also subject to Alaska tax.

• Defines income from sources in Alaska to include wages, business income, real and personal property income, intangible property income, and income from trusts and estates with Alaska connections.

• Repeals certain provisions of the Alaska Net Income Tax Act and makes the act applicable to income received on or after January 1, 2017.