Legislature to hear bill for Alaskan income tax

Download Audio

A legislative committee will hear a bill that would levy a personal income tax on Alaskans later than anticipated.

The Senate Labor and Commerce Committee was to have heard the bill Tuesday afternoon, but testimony on another bill before the committee ran long.

Instead, the committee planned to introduce the bill and take public testimony Tuesday evening.

The income tax is one of several tax proposals from Gov. Bill Walker intended to address the state’s estimated $3.5 billion budget deficit. Others include higher taxes on motor fuel, fishing, mining and tourism as well as increases in alcohol and cigarette taxes. Walker is also proposing changes to Alaska’s oil tax credit program.

In its current form, the personal income tax would be 6 percent of your federal tax liability, or the amount you pay in taxes to the federal government. If your liability is $5,000, you would pay $300 in state taxes.

The measure is expected to generate about $200 million in new revenue for the state.