00                            SENATE BILL NO. 165                                                                         
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)  The tax imposed under AS 43.45.011                               
09       shall be paid before February 1 of the calendar year following the year for which it is                           
10       imposed.                                                                                                          
11            (b)  An employer shall deduct and send to the department $50 of the tax from                                 
12       the employee's salary or other compensation on each of the first two regular payrolls                             
13       after January 1 of each calendar year or, in the case of an employee who begins work                              
14       and is provided a salary or compensation on a later payroll, on each of the first two                             
15       payrolls after employment.  A deduction of the tax may not be made in the salary or                               

01       other compensation of a person who provides proof to the employer that the tax                                    
02       imposed under AS 43.45.011 has been paid.                                                                         
03            (c)  The department shall provide a return form for the tax collected under this                             
04       section.                                                                                                          
05            Sec. 43.45.031.  Record of withholding.  An employer who withholds tax                                     
06       under AS 43.45.021 shall furnish to the employee upon request a record of the amount                              
07       of tax withheld from the employee.  The department shall provide a form for that                                  
08       purpose.                                                                                                          
09            Sec. 43.45.041.  Disposition of tax proceeds.  (a)  The tax collected under                                
10       AS 43.45.021 shall be deposited into the general fund and accounted 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.  This Act takes effect January 1, 2002.