AK SB12

Imposes a limited annual tax on wages and net earnings from self-employment for Alaska resident individuals and nonresidents/part-year residents with income sourced in the state.

Tax amounts range from $50 to $500 per year based on income brackets: $50 for income under $20,000; $100 for $20,000-$49,999; $200 for $50,000-$99,999; $300 for $100,000-$499,999; and $500 for $500,000 or more.

Employers must withhold half of estimated annual tax from employee wages during the first two payrolls of the calendar year, with any remaining balance withheld from the final payroll; self-employed individuals remit tax directly to the department.

Tax revenue and penalties are deposited into the general fund but accounted for separately, with the legislature authorized to appropriate estimated collections into the educational facilities, maintenance, and construction fund.

Bill takes effect January 1, 2017, with the Department of Revenue authorized to adopt implementing regulations.