SB 165: "An Act imposing a tax on employment; and providing for an effective date."

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.