HB 4001 Summary

• Imposes a 1.5 percent tax on individuals with wages earned in Alaska or net earnings from self-employment from sources in the state, effective January 1, 2019.

• Caps annual tax liability at the greater of twice the permanent fund dividend value or $2,200 adjusted annually for inflation based on the Anchorage Consumer Price Index.

• Requires employers to withhold the tax from employee wages and remit it to the Department of Revenue, with tax returns due on the same schedule as federal income tax returns.

• Incorporates federal income tax definitions and rules from the Internal Revenue Code, including provisions on penalties, fraud, and tax administration, unless inconsistent with Alaska law.

• Allows the Department of Revenue to coordinate collection and reporting with the Department of Labor and Workforce Development to reduce administrative costs.