HB 9 — An Act relating to the taxation of income of individuals, partners, shareholders in S corporations, trusts, and estates; relating to a payment against the individual income tax from the permanent fund dividend disbursement; repealing tax credits applied against the tax on individuals under the Alaska Net Income Tax Act; and providing for an effective date.

Bill Text

• HB 9 View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes a new income tax system for individuals and entities in Alaska while also repealing existing tax credits against the income tax.

• AS 43.05.045(a)

  UNLESS → unless

  The change modifies the capitalization of the word 'unless' for consistency in language.

• AS 43

  Chapter 22. Individual Income Tax.

  This adds a new chapter to the Alaska Statutes, establishing an Individual Income Tax.

• AS 43.22.010

  Income tax on individuals. (a) Each calendar year or fraction of a calendar year, an income tax is imposed on the income of a (1) resident; (2) nonresident that is derived from or connected with a source in the state.

  This establishes the framework for imposing an income tax on individuals based on their residency status.

• AS 43.22.010

  Less than $10,300 $0 $10,300 but less than $50,000 2.5 percent of the amount in excess of $10,300 $50,000 but less than $100,000 $992.50 plus 4 percent of the amount in excess of $50,000 $100,000 but less than $200,000 $2,992.50 plus 5 percent of the amount in excess of $100,000 $200,000 but less than $250,000 $7,992.50 plus 6 percent of the amount in excess of $200,000 $250,000 or more $10,992.50 plus 7 percent of the amount in excess of $250,000. → If the taxable income is Then the tax is Less than $10,300 $0 $10,300 but less than $50,000 2.5 percent of the amount in excess of $10,300 $50,000 but less than $100,000 $992.50 plus 4 percent of the amount in excess of $50,000 $100,000 but less than $200,000 $2,992.50 plus 5 percent of the amount in excess of $100,000 $200,000 but less than $250,000 $7,992.50 plus 6 percent of the amount in excess of $200,000 $250,000 or more $10,992.50 plus 7 percent of the amount in excess of $250,000.

  This sets specific tax rates and brackets for individual income taxation based on income levels.

• AS 43.22.010

  an individual, or two individuals filing jointly, will receive an additional $4,000 deduction for each dependent, resulting in an increase in the amounts stated in (1) and (2) of this section of $4,000 for each dependent.

  This allows for additional deductions for dependents, effectively increasing the income threshold for taxation.

• AS 43.22.015

  Calculation of tax on a nonresident individual.

  This section details how to calculate income tax for nonresident individuals.

• AS 43.22.020

  Tax on trusts and estates.

  This section establishes income taxation rules for trusts and estates.

• AS 43.22.025

  Credit for income taxes imposed by other jurisdictions.

  This allows residents and part-year residents to claim credits for taxes paid to other jurisdictions.

• AS 43.22.075

  Payments against the individual income tax from the permanent fund dividend disbursement.

  This establishes guidelines for payments made against individual income taxes using permanent fund dividends.

Action History

1. February 18, 2021

   (H) REFERRED TO STATE AFFAIRS

2. February 18, 2021

   (H) STA, L&C, FIN

3. February 18, 2021

   (H) READ THE FIRST TIME - REFERRALS

4. February 18, 2021

   (H) Prefile released 1/8/21

Sponsors

• Sara Hannan · Primary

Subjects