00                      CS FOR HOUSE BILL NO. 229(L&C)                                                                    
01 "An Act imposing a tax on employment; and providing for an effective date."                                             
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 43 is amended by adding a new chapter to read:                                                    
04                        Chapter 45.  Education Tax.                                                                    
05            Sec. 43.45.011.  Tax imposed.  There is imposed a tax of $100 a year on each                               
06       individual 19 years of age or older and employed, including self-employed, in the                                 
07       state.                                                                                                            
08            Sec. 43.45.021.  Collection of tax.  (a)  An employer shall deduct and                                     
09       withhold $50 of the tax from the employee's salary or other compensation on each of                               
10       the first two regular payrolls after January 1 of each calendar year or, in the case of an                        
11       employee who begins work and is provided a salary or compensation on a later                                      
12       payroll, on each of the first two payrolls after employment.  A deduction of the tax                              
13       may not be made in the salary or other compensation of a person who provides proof                                
14       to the employer that the tax imposed under AS 43.45.011 has been paid.                                            
15            (b)  The department shall provide a return form for the tax withheld under this                              

01       section.  An employer shall send the tax withheld to the department on or before the                              
02       last day of the month following the calendar quarter in which the tax was withheld                                
03       from the employee.                                                                                                
04            Sec. 43.45.031.  Record of withholding.  An employer who withholds tax                                     
05       under AS 43.45.021 shall furnish to the employee upon request a record of the amount                              
06       of tax withheld from the employee.  The department shall provide a form for that                                  
07       purpose.                                                                                                          
08            Sec. 43.45.041.  Disposition of tax proceeds.  (a)  The tax collected by the                               
09       department under AS 43.45.021 shall be deposited into the general fund and accounted                              
10       for separately.                                                                                                   
11            (b)  The legislature may appropriate the estimated amounts to be collected and                               
12       separately accounted for under (a) of this section for education.                                                 
13            (c)  The deposit required and appropriation authorized by this section are not                               
14       intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State                        
15       of Alaska.                                                                                                        
16    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
17 read:                                                                                                                   
18       CONTINGENT EFFECTIVENESS.  This Act takes effect only if an Act imposing an                                       
19 individual income tax is passed by the Twenty-Second Alaska State Legislature and becomes                               
20 law.                                                                                                                    
21    * Sec. 3.  This Act takes effect on the later of (1) the effective date of the Act described in                    
22 sec. 2 of this Act, and (2) January 1, 2003.