The proposed bill introduces a new education tax in Alaska, imposing a four percent tax on taxable income exceeding $150,000 for individuals filing separately and $300,000 for those filing jointly. It also establishes an annual tax of $150 for individuals with wages or net earnings from self-employment in the state. The bill outlines tax calculations for nonresident individuals and includes specific provisions for trusts and estates, with exemptions for certain types of trusts. Additionally, it repeals existing tax credits under the Alaska Net Income Tax Act and provides credits against the new education tax for taxes imposed by other jurisdictions to prevent double taxation.

The legislation amends current tax laws to clarify the taxation of income from various sources, including real property sales, rental income, and personal services performed in the state. It mandates employers to withhold taxes from employee wages and outlines regulations for partnerships regarding nonresident partners' tax withholding. The bill also allows for the adoption of regulations for partnerships to file composite returns and enables individuals eligible for a permanent fund dividend to have part of their dividend withheld for tax liabilities. Furthermore, it incorporates sections of the Internal Revenue Code into state law and establishes an early education fund, with certain existing laws repealed effective January 1, 2026, and new provisions applying to income received on or after that date.

Statutes affected:
HB0152A, AM HB 152, introduced 03/24/2025: 43.05.045, 43.22.075, 43.05.220, 43.22.015, U.S.C, 43.22.010, 43.22.030, 43.22.045, 43.22.020, 13.36.215, 43.22.025, 43.20.144, 43.22.035, 43.22.040, 43.22.050, 43.22.055, 43.22.060, 43.22.065, 43.22.070, 43.22.080, 43.22.085, 43.22.090, 43.23.005, 43.22.095, 43.22.100, 43.22.105, 43.05.230, 43.22.110, 14.03.420, 43.22.150, 43.05.085, 43.20.012, 43.20.013