00                            SENATE BILL NO. 112                                                                         
01 "An Act imposing a tax on residents of regional educational attendance areas; and                                       
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43 is amended by adding a new chapter to read:                                                    
05             Chapter 45.  Regional Educational Attendance Area Tax.                                                    
06            Sec. 43.45.011.  Tax imposed.  (a)  There is imposed a tax each year on each                               
07       individual 21 years of age or older residing in a regional educational attendance area.                           
08            (b)  The commissioner shall determine the amount of tax due each year from                                   
09       each individual subject to the tax imposed under (a) of this section by dividing the                              
10       amount of the total local contributions to schools required of organized boroughs                                 
11       under AS 14.17.410(b)(2) by the estimated population of individuals 21 years of age                               
12       and older in the organized boroughs.                                                                              
13            Sec. 43.45.021.  Collection of tax.  (a)  The tax imposed under AS 43.45.011                               
14       shall be paid before November 1 of the calendar year following the year for which it is                           

01       imposed.  An individual who is subject to the tax shall file a return on a form                                   
02       prescribed by the department, and, if the individual has not had the tax withheld from                            
03       the individual's salary or other compensation, shall remit the tax directly to the                                
04       department.                                                                                                       
05            (b)  If an employee resides in a regional educational attendance area, the                                   
06       employee's employer shall deduct and send to the department one-half of an                                        
07       employee's tax from the employee's salary or other compensation on each of the first                              
08       regular payrolls in the first two calendar months of employment.  A deduction of the                              
09       tax may not be made in the salary or other compensation of a person who provides                                  
10       proof to the employer that the tax imposed under AS 43.45.011 has been paid.  The                                 
11       department shall prescribe a return form for the tax collected under this subsection.                             
12            Sec. 43.45.031.  Record of withholding.  An employer who withholds tax                                     
13       under AS 43.45.021 shall furnish to the employee upon request a record of the amount                              
14       of tax withheld from the employee.  The department shall provide a form for that                                  
15       purpose.                                                                                                          
16            Sec. 43.45.041.  Disposition of tax proceeds.  (a)  The tax collected under                                
17       AS 43.45.021 shall be deposited into the general fund and accounted for separately.                               
18            (b)  The legislature may appropriate the estimated amounts to be collected and                               
19       separately accounted for under (a) of this section for education.                                                 
20            (c)  The deposit required and appropriation authorized by this section are not                               
21       intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State                        
22       of Alaska.                                                                                                        
23    * Sec. 2.  This Act takes effect January 1, 2006.