00                            HOUSE BILL NO. 236                                                                          
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, except an individual who is not required to file a federal income tax return under                         
08       26 U.S.C. (Internal Revenue Code).                                                                                
09            Sec. 43.45.021.  Collection of tax.  (a)  An employer shall deduct and                                     
10       withhold $50 of the tax from the employee's salary or other compensation on each of                               
11       the first two regular payrolls after July 1 of each calendar year or, in the case of an                           
12       employee who begins work and is provided a salary or compensation on a later                                      
13       payroll, on each of the first two payrolls after employment.  A deduction of the tax                              
14       may not be made in the salary or other compensation of a person who provides proof                                
15       to the employer that the tax imposed under AS 43.45.011 has been paid.  An employer                               

01       shall send the tax withheld to the department on or before the last day of the month                              
02       following the calendar quarter in which the tax was withheld from the employee.                                   
03            (b)  The department shall provide a return form for the tax withheld under this                              
04       section.                                                                                                          
05            Sec. 43.45.031.  Record of withholding.  An employer who withholds tax                                     
06       under AS 43.45.021 shall furnish to the employee upon request a record of the amount                              
07       of tax withheld from the employee.  The department shall provide a form for that                                  
08       purpose.                                                                                                          
09            Sec. 43.45.041.  Disposition of tax proceeds.  (a)  The tax collected by the                               
10       department under AS 43.45.021 shall be deposited into the general fund and accounted                              
11       for separately.                                                                                                   
12            (b)  The legislature may appropriate the estimated amounts to be collected and                               
13       separately accounted for under (a) of this section for education.                                                 
14            (c)  The deposit required and appropriation authorized by this section are not                               
15       intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State                        
16       of Alaska.                                                                                                        
17    * Sec. 2.  This Act takes effect July 1, 2004.