SSHB 146 Summary

• Imposes an annual school tax on adjusted gross income for Alaska residents, part-year residents, and nonresidents with income sourced in the state, effective January 1, 2018.

• Tax brackets range from $100/year for income under $20,000 to $8,500/year for income of $250,000 or more, with nine graduated brackets between those amounts.

• Allows taxpayers to direct the Department of Revenue to withhold all or part of their permanent fund dividend to pay the school tax owed, with any excess dividend amount refunded.

• Sets delinquent tax interest rate at 18 percent annually and establishes a maximum collection fee of $2,500, with optional 90-day filing extensions at department discretion.

• Directs tax collections to the general fund with authority for the legislature to appropriate collected amounts to the public education fund established in AS 14.17.300.