SB 4001 Summary

• Establishes a 6% individual income tax on resident and nonresident individuals with Alaska income, effective January 1, 2018.

• Increases motor fuel taxes from 8 to 16 cents per gallon (with adjustments for aviation fuel and watercraft); increases cigarette tax to 112 mills and tobacco product tax from 75% to 100% of wholesale price; adds 75% excise tax on electronic smoking products with nicotine labeling requirements.

• Increases alcoholic beverage excise taxes, including malt beverages from $1.07 to $2.14 per gallon and wine from $2.50 to $5 per gallon; doubles reduced rate for qualifying breweries from 35 to 70 cents per barrel.

• Increases fisheries business taxes and landing taxes on fish resources; increases mining license tax rates and reduces new mining operation exemption from 3.5 to 2 years; adds bonding requirements for marijuana cultivation facilities.

• Modifies exploration incentive credit applicability to limit carryforward to tax years only (removing royalty payment periods) and revises fishery tax revenue distribution to local governments.