00                            HOUSE BILL NO. 376                                                                          
01 "An Act relating to a tax on the permanent fund dividend."                                                              
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 22.  Tax on Permanent Fund Dividend.                                                          
05            Sec. 43.22.010.  Tax on dividend.  (a)  An individual who receives a                                       
06       permanent fund dividend under AS 43.23 shall pay a tax of 35 percent on the amount                                
07       of the dividend as calculated under AS 43.23.025(a).                                                              
08            (b)  The amount of the tax shall be calculated before a garnishment, levy,                                   
09       assignment, or other claim, reduction, or donation allowed by law.                                                
10            (c)  The tax under this section shall be withheld by the department and is due                               
11       on the date the dividend becomes payable to an individual under AS 43.23.                                         
12    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
13 read:                                                                                                                   
14       APPLICABILITY.  The tax under AS 43.22.010, enacted by sec. 1 of this Act, applies                                
15 to a permanent fund dividend received on or after the effective date of this Act.                                       

01    * Sec. 3. AS 43.22.010 is repealed January 1, 2021.