SB 4001 Summary

• Imposes a 1.5 percent tax on wages and net earnings from self-employment for individuals with income sourced in Alaska, effective January 1, 2019.

• Caps the annual tax at the greater of twice the permanent fund dividend or $2,200 adjusted for inflation from July 1, 2017.

• Requires employers to withhold the tax from employee wages and remit it to the Department of Revenue on a schedule matching federal income tax requirements.

• Defines taxable wages and self-employment income as earnings from work physically performed in Alaska or business activities systematically and regularly conducted in the state.

• Authorizes the Department of Revenue to adopt regulations implementing the tax and coordinate collection with employment security contributions through the Department of Labor and Workforce Development.