The proposed bill seeks to amend Alaska's tax laws, focusing on the Multistate Tax Compact, income apportionment, and local sales and use taxes. It establishes a state sales and use tax, authorizes the Department of Revenue to join the Streamlined Sales and Use Tax Agreement, and allows boroughs to levy local sales taxes on personal property and services. The bill also clarifies tax assessment and collection processes for local governments, mandates public notice for tax levies, and aims to ensure fair tax liabilities for multistate taxpayers. Additionally, it introduces a new framework for income apportionment for water transportation carriers and oil and gas production, replacing the term "business income" with "apportionable income" to enhance clarity in tax obligations.

Significant changes include the establishment of a zero percent sales tax rate on retail sales of personal property and services, replacing the previous tiered rates, and an increase in the minimum tax rate for oil production from leases north of 68 degrees North latitude. The bill also introduces a new infrastructure maintenance surcharge for oil production, clarifying that tax credits cannot reduce this surcharge liability. Furthermore, it outlines a structured tax environment for oil producers, including a tiered tax rate system based on oil prices, and establishes a pipeline corridor maintenance fund funded by the new surcharge. Overall, the legislation aims to streamline tax processes, enhance compliance, and create a more predictable tax framework for various sectors in Alaska.

Statutes affected:
SB0227A, AM SB 227, introduced 01/26/2026: 28.10.021, 28.05.041, U.S.C, 43.44.010, 28.20.400, 28.22.011, 29.10.200, 29.45.650, 29.45.700, 29.45.655, 29.35.110, 29.35.170, 04.21.010, 29.45.750, 29.45.660, 29.45.020, 29.45.810, 36.10.005, 43.05.230, 43.05.499, 43.19.010, 43.20.011, 43.20.143, 43.20.144, 43.44.490, 43.44.030, 43.44.040, 43.44.430, 43.44.400, 43.44.100, 39.52.960, 47.25.975, 43.44.210, 08.68.700, 43.44.200, 43.44.220, 43.44.340, 43.44.230, 43.44.240, 43.44.300, 43.44.310, 43.44.320, 43.44.330, 43.44.350, 43.44.360, 43.44.370, 43.44.380, 43.44.390, 43.44.410, 43.44.420, 43.55.011, 43.55.020, 43.55.165, 43.55.170, 43.55.160, 43.55.024, 43.55.023, 43.55.201, 43.55.299, 43.55.300, 43.55.320, 43.55.014, 43.55.025, 43.55.310, 43.55.325, 43.55.900, 29.05.210