SB 97 Summary

• Imposes a limited education tax on wages and net earnings from self-employment for resident individuals and nonresidents/part-year residents with Alaska income sources.

• Tax amounts based on annual income brackets: $100/year for $10,000-$49,999; $200/year for $50,000-$99,999; $300/year for $100,000-$499,999; $500/year for $500,000 or more.

• Employers must withhold half the estimated tax from first two payrolls of the calendar year, with remaining balance withheld from subsequent payrolls, and self-employed individuals must remit taxes directly to the department.

• Tax proceeds deposited to the general fund and separately accounted for, allowing the legislature to appropriate amounts collected for education purposes without creating a dedicated fund.

• Effective January 1, 2016, with all provisions repealed on the earlier of January 1, 2024, or the date a liquefied natural gas tankship departs Port of Nikiski at or near complete capacity.