00SENATE BILL NO. 131                                                                                                     
01 "An Act imposing a tax on employment, with the tax proceeds available to                                                
02 support public school construction and major maintenance; and providing for an                                          
03 effective date."                                                                                                        
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 43 is amended by adding a new chapter to read:                                                      
06 Chapter 45.  School Tax.                                                                                                
07     Sec. 43.45.011.  Tax imposed.  There is imposed a tax of $25 a year upon                                           
08 each individual 19 years of age or older and employed, including self-employed, in the                                  
09 state.                                                                                                                  
10     Sec. 43.45.021.  Collection of tax.  (a)  The tax imposed under AS 43.45.011                                       
11 shall be paid before February 1 of the calendar year following the year for which it is                                 
12 imposed.                                                                                                                
13  (b)  An employer, upon the first regular payroll after January 1 of each                                              
14 calendar year or, in the case of an employee on a later payroll, on the first payroll after                             

01 employment, shall deduct the tax from the employee's salary or other compensation                                       
02 and send it to the department.  A deduction of the tax may not be made in the salary                                    
03 or other compensation of a person who provides proof to the employer that the tax                                       
04 imposed under AS 43.45.011 has been paid.  The department shall provide a return                                        
05 form for the tax collected under this section.                                                                          
06     Sec. 43.45.031.  Record of withholding.  An employer who withholds tax                                             
07 under AS 43.45.021 shall furnish to the employee upon request a record of the amount                                    
08 of tax withheld from the employee.  The department shall provide a form for that                                        
09 purpose.                                                                                                                
10  Sec. 43.45.041.  Disposition of tax proceeds.  (a)  The tax collected under                                           
11 AS 43.45.021 shall be deposited into the general fund and accounted for separately.                                     
12  (b)  The legislature may appropriate the estimated amounts to be collected and                                        
13 separately accounted for under (a) of this section to the school construction grant fund                                
14 in AS 14.11.005 and the major maintenance grant fund in AS 14.11.007.                                                   
15  (c)  The deposit required and appropriation authorized by this section are not                                        
16 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State                              
17 of Alaska.                                                                                                              
18    * Sec. 2.  This Act takes effect January 1, 1998.