SB 139 Summary

• Imposes a 1.5 percent tax on individual wages and net earnings from self-employment derived from sources in Alaska, effective January 1, 2019.

• Establishes a $2,200 annual tax cap (adjusted for inflation) or twice the permanent fund dividend value, whichever is greater, to limit individual tax liability.

• Requires employers to withhold taxes from wages and remit them to the Department of Revenue on forms and schedules prescribed by regulation.

• Creates the Alaska Economic Recovery Tax Account in the general fund to receive tax revenues, with annual balances available for legislative appropriation to fund capital projects, grants, municipal impact assistance, housing programs, and energy efficiency initiatives.

• Repeals the tax and all implementing sections effective July 1, 2021, unless the legislature extends the authority.