HB 263: "An Act imposing a tax on employment; and providing for an effective date."
00 HOUSE BILL NO. 263 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. (a) There is imposed a tax of $10 a year on 06 each individual 19 years of age or older who, during the entire calendar year, receives 07 compensation greater than $1,000 in the state. 08 (b) For purposes of this section, "compensation" includes wages, salaries, 09 commissions, tips, and any other form of remuneration paid for personal services. 10 (c) The tax imposed under this section does not apply to compensation exempt 11 from the tax under federal law. 12 Sec. 43.45.021. Collection of tax. (a) An employer shall deduct and 13 withhold $10 of the tax from the employee's salary or other compensation on the first 14 regular payroll after the employee's total compensation paid by the employer during 15 the calendar year has exceeded $1000. An employer shall file a return on a form
01 prescribed by the department and send the tax withheld to the department on or before 02 the 15th day of the month following the month in which the tax was withheld from the 03 employee. 04 (b) A deduction of the tax may not be made in the salary or other 05 compensation of an individual who provides proof to the employer that 06 (1) the tax imposed under AS 43.45.011 for that tax year has already 07 been withheld by another employer; or 08 (2) the individual was not 19 years of age or older for the entire tax 09 year. 10 (c) An individual who has not had the full tax withheld by an employer must 11 file a return on a form prescribed by the department and remit the tax due under this 12 section by December 31 of the calendar year. 13 Sec. 43.45.031. Liability of employer. An employer who pays compensation 14 is liable for the tax required to be withheld from an employee under this section unless 15 the employer can demonstrate that the employer relied on proof provided by the 16 employee that 17 (1) the tax imposed under AS 43.45.011 had already been withheld by 18 another employer; or 19 (2) the individual was not 19 years of age or older for the entire 20 calendar year. 21 Sec. 43.45.041. Disposition of tax proceeds. (a) The tax collected by the 22 department under AS 43.45.021 shall be deposited into the general fund and accounted 23 for separately. 24 (b) The legislature may appropriate the estimated amounts to be collected and 25 separately accounted for under (a) of this section for education. 26 (c) The deposit required and appropriation authorized by this section are not 27 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State 28 of Alaska. 29 * Sec. 2. AS 43.45.011(a) as enacted by sec. 1 of this Act, is repealed and reenacted to 30 read: 31 (a) There is imposed a tax of $10 a year on each individual 19 years of age or
01 older who, during the entire calendar year, receives compensation greater than $1,000 02 in the state and is not subject to a regional educational attendance area tax. 03 * Sec. 3. AS 43.45.021(b), as enacted by sec. 1 of this Act, is repealed and reenacted to 04 read: 05 (b) A deduction of the tax may not be made in the salary or other 06 compensation of an individual who provides proof to the employer that 07 (1) the tax imposed under AS 43.45.011 for that tax year has already 08 been withheld by another employer; 09 (2) the individual was not 19 years of age or older for the entire tax 10 year; or 11 (3) the individual resides in a regional educational attendance area and 12 is subject to a regional educational attendance area tax. 13 * Sec. 4. AS 43.45.031, as enacted by sec. 1 of this Act, is repealed and reenacted to read: 14 Sec. 43.45.031. Liability of employer. An employer who pays compensation 15 is liable for the tax required to be withheld from an employee under this section unless 16 the employer can demonstrate that the employer relied on proof provided by the 17 employee that 18 (1) the tax imposed under AS 43.45.011 had already been withheld by 19 another employer; 20 (2) the individual was not 19 years of age or older for the entire 21 calendar year; or 22 (3) the individual resides in a regional educational attendance area and 23 is subject to a regional educational attendance area tax. 24 * Sec. 5. AS 43.45 is amended by adding a new section to read: 25 Sec. 43.45.091. Definition. In this section, "regional educational attendance 26 area tax" means the tax levied under this title each year on each individual who is 21 27 years of age or older on January 1 of the tax year and resides in a regional educational 28 attendance area. 29 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 REVISOR'S INSTRUCTION FOR AS 43.45.091. The revisor of statutes may
01 conform the definition of the regional educational attendance area tax in AS 43.45.091, added 02 by sec. 5 of this Act, by substituting an appropriate cross-reference to the section in which the 03 tax is imposed. 04 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 CONDITIONAL EFFECT OF SECTIONS 2 - 6. The repeal and reenactment of 07 AS 43.43.011(a) by sec. 2 of this Act, the repeal and reenactment of AS 43.45.021(b) by sec. 08 3 of this Act, the repeal and reenactment of AS 43.45.031 by sec. 4 of this Act, the enactment 09 of AS 43.45.091 by sec. 5 of this Act, and sec. 6 of this Act take effect only if the Twenty- 10 Fourth Alaska Legislature passes a version of Senate Bill 112, entitled "An Act imposing a 11 tax on residents of regional educational attendance areas; and providing for an effective date," 12 and the Act becomes law. 13 * Sec. 8. If, under sec. 7 of this Act, the repeal and reenactment of AS 43.45.011(a) by sec. 14 2 of this Act, the repeal and reenactment of AS 43.45.021(b) by sec. 3 of this Act, the repeal 15 and reenactment of AS 43.45.031 by sec. 4 of this Act, the enactment of AS 43.45.091 by 16 sec. 5 of this Act, and sec. 6 of this Act take effect, they take effect on the effective date of the 17 Act described in sec. 7 of this Act or on the effective date of sec. 1 of this Act, whichever is 18 later. 19 * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect January 1, 2006.