AK SB5003

Establishes a 6% individual income tax on resident individuals' total federal income tax and on nonresident individuals' federal income tax attributable to Alaska-source income, effective January 1, 2018.

Allows residents a tax credit for income taxes paid to other states, territories, or U.S. possessions on income also subject to Alaska tax, limited to a proportional amount based on out-of-state income.

Requires employers to withhold income tax from wages and remit it to the Department of Revenue on a schedule prescribed by regulation, with employees receiving a written statement by January 31 showing total withholdings.

Defines income sourced to Alaska to include wages earned in-state, rental income from state property, business income from in-state activities, and income from any activity conducted in the state.

Defines resident status based on domicile or residency for the entire calendar year, receipt of a permanent fund dividend, voter registration, or possession of a resident hunting or fishing license during the year.