00HOUSE BILL NO. 229                                                                                                    
01 "An Act establishing a school tax; 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 22.  Alaska School Tax.                                                                                        
05  Sec. 43.22.010.  Levy of school tax.  There is imposed a school tax of $100                                          
06 a year on the wages of every person employed in the state except the tax is not                                         
07 imposed on the wages of an employee                                                                                     
08   (1)  who was not employed during the first regular pay period after                                                  
09 July 1 of each year; or                                                                                                 
10   (2)  whose wages during the first regular pay period after July 1 are                                                
11 $250 or less.                                                                                                           
12  Sec. 43.22.020.  Collection of the tax.  (a)  An employer shall deduct and                                          
13 withhold the school tax imposed in AS 43.22.010 from each employee's wages.  The                                        
14 tax shall be deducted in the first regular pay period after July 1 of each year.                                        

01  (b)  Every employer paying wages subject to tax under AS 43.22.010 and                                                
02 earned in the state, regardless of the place where the payment is made,                                                 
03   (1)  is liable for the payment of the school tax required to be deducted                                             
04 and withheld under this section and is not liable to an individual for the amount of the                                
05 payment; and                                                                                                            
06   (2)  shall make a return of and pay to the department each year the                                                  
07 amount of school tax levied that the employer is required to deduct and withhold under                                  
08 this chapter.                                                                                                           
09  (c)  An employer who fails to comply with this section is subject to the                                              
10 penalties set out in AS 43.05.220(d).                                                                                   
11  Sec. 43.22.030.  Administration of school tax.  The department shall                                                
12 administer the school tax levied in this chapter and may adopt any necessary                                            
13 regulations.  All taxes collected under this chapter shall be paid into a special school                                
14 tax account in the general fund.                                                                                        
15  Sec. 44.22.040.  Disposition of receipts.  The legislature may appropriate 50                                       
16 percent of the estimated balance of the school tax account for the university system,                                   
17 and 50 percent for the elementary and secondary school system.  This section is not                                     
18 intended to create a dedicated fund.                                                                                    
19  Sec. 43.22.099.  Definitions.  In this chapter,                                                                     
20   (1)  "employee" has the meaning given in 26 U.S.C. 3121;                                                             
21   (2)  "employer" has the meaning given in 26 U.S.C. 3401(d);                                                          
22   (3)  "wages" has the meaning given in 26 U.S.C. 3121.                                                                
23    * Sec. 2.  This Act takes effect January 1, 2000.