The proposed bill establishes 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 introduces an annual tax of $150 for individuals with wages or net earnings from self-employment. The bill outlines tax calculations for nonresident individuals and includes specific provisions for trusts and estates, while also repealing existing tax credits under the Alaska Net Income Tax Act. Additionally, it amends laws regarding the electronic submission of tax returns to ensure compliance with new requirements, aiming to generate revenue for educational purposes.

Moreover, the bill clarifies 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 wages, establishes regulations for part-year residents, and addresses the filing and payment of taxes, including the requirement for taxpayers to notify the Department of Revenue of changes to their federal tax returns. The bill also introduces amendments related to partnerships and permanent fund dividends, ensuring that tax liabilities are covered through withholding from dividends. It incorporates sections of the Internal Revenue Code into state law and establishes an early education fund, with provisions taking effect on January 1, 2026.

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