CSHB 229(L&C): "An Act imposing a tax on employment; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 229(L&C) 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. There is imposed a tax of $100 a year on each 06 individual 19 years of age or older and employed, including self-employed, in the 07 state. 08 Sec. 43.45.021. Collection of tax. (a) An employer shall deduct and 09 withhold $50 of the tax from the employee's salary or other compensation on each of 10 the first two regular payrolls after January 1 of each calendar year or, in the case of an 11 employee who begins work and is provided a salary or compensation on a later 12 payroll, on each of the first two payrolls after employment. A deduction of the tax 13 may not be made in the salary or other compensation of a person who provides proof 14 to the employer that the tax imposed under AS 43.45.011 has been paid. 15 (b) The department shall provide a return form for the tax withheld under this

01 section. An employer shall send the tax withheld to the department on or before the 02 last day of the month following the calendar quarter in which the tax was withheld 03 from the employee. 04 Sec. 43.45.031. Record of withholding. An employer who withholds tax 05 under AS 43.45.021 shall furnish to the employee upon request a record of the amount 06 of tax withheld from the employee. The department shall provide a form for that 07 purpose. 08 Sec. 43.45.041. Disposition of tax proceeds. (a) The tax collected by the 09 department under AS 43.45.021 shall be deposited into the general fund and accounted 10 for separately. 11 (b) The legislature may appropriate the estimated amounts to be collected and 12 separately accounted for under (a) of this section for education. 13 (c) The deposit required and appropriation authorized by this section are not 14 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State 15 of Alaska. 16 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 CONTINGENT EFFECTIVENESS. This Act takes effect only if an Act imposing an 19 individual income tax is passed by the Twenty-Second Alaska State Legislature and becomes 20 law. 21 * Sec. 3. This Act takes effect on the later of (1) the effective date of the Act described in 22 sec. 2 of this Act, and (2) January 1, 2003.