CSSB 112(FIN): "An Act relating to a tax on residents of and individuals employed in regional educational attendance areas and to permanent fund dividend applications; and providing for an effective date."
00 CS FOR SENATE BILL NO. 112(FIN) 01 "An Act relating to a tax on residents of and individuals employed in regional 02 educational attendance areas and to permanent fund dividend applications; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature that the proceeds of the tax 08 imposed in sec. 4 of this Act provide an additional source of revenue that can be used by the 09 legislature to provide additional funding for regional educational attendance areas beyond 10 existing state and federal contributions. 11 * Sec. 2. AS 43.05.240 is amended by adding a new subsection to read: 12 (c) An individual requesting an informal conference under (a) of this section 13 regarding the regional educational attendance area tax under AS 43.45 shall pay a $50 14 fee. The department shall refund the fee to the individual if the individual prevails
01 upon a final determination of the case. 02 * Sec. 3. AS 43.23.015(b) is amended to read: 03 (b) The department shall prescribe and furnish an application form for 04 claiming a permanent fund dividend. The application must include notice of the 05 penalties provided for under AS 43.23.035 and contain a statement of eligibility and a 06 certification of residency. The department shall require applicants to supply a 07 physical address as well as a mailing address. 08 * Sec. 4. AS 43 is amended by adding a new chapter to read: 09 Chapter 45. Regional Educational Attendance Area Tax. 10 Sec. 43.45.011. Tax imposed. (a) There is imposed a tax each year on each 11 individual 12 (1) who is at least 21 years of age but not more than 64 years of age on 13 January 1 of the tax year; and 14 (2) who 15 (A) resides in a regional educational attendance area on 16 January 1 of the tax year; or 17 (B) is employed during the tax year in a regional educational 18 attendance area for 10 consecutive working days or a normal pay period, 19 whichever is less, or for more than 20 cumulative working days. 20 (b) The commissioner shall determine the amount of tax due each year from 21 each individual subject to the tax imposed under (a) of this section by dividing the 22 amount of the total local contributions to schools required of organized boroughs 23 under AS 14.17.410(b)(2) by the estimated population of individuals 21 years of age 24 and older but not more than 64 years of age in the organized boroughs. 25 (c) The following are exempt from the tax imposed under (a) of this section: 26 (1) an individual who is a member of a family with an income during 27 the tax year equal to or less than the federal poverty guidelines for the tax year for 28 Alaska set by the United States Department of Health and Human Services; 29 (2) a disabled veteran, as the term is defined in AS 29.45.030(i); 30 (3) the owner of real property located in a municipality that levies a 31 property tax, if the taxes on the property were not delinquent at any time during the tax
01 year. 02 Sec. 43.45.021. Collection of tax. (a) The tax imposed under AS 43.45.011 03 shall be paid before April 1 of the calendar year following the year for which it is 04 imposed. An individual who is subject to the tax and has not had the tax withheld 05 during the tax year by an employer from the individual's salary or other compensation 06 shall file a return and pay the tax on a form and in a manner prescribed by the 07 department. 08 (b) Each employer of an individual subject to tax under this chapter shall 09 deduct and withhold the lesser of one-half of the tax for the year or 10 percent of the 10 employee's gross compensation from the employee's first regular payroll during the 11 tax year and each subsequent regular payroll until the full tax due has been collected. 12 The employer shall hold the tax withheld in trust and remit it to the department with a 13 return prescribed by the department not later than the 15th day of the month following 14 the end of each calendar quarter or any month during which the cumulative unpaid 15 withholding by the employer exceeds $500, whichever is earlier. These withheld 16 taxes are not subject to garnishment or attachment and, in the event of lien, judgment, 17 or bankruptcy proceedings, are not considered assets of the employer. An employer 18 who fails to make the deductions from the compensation of employees or to remit the 19 tax to the department by the date required under this section is liable to the department 20 for the tax. 21 (c) An employer is not required to withhold the tax from the salary or other 22 compensation of an individual if the employer reasonably believes, based on the 23 attestation of the individual, that the individual 24 (1) owns real property located in a municipality that levies a property 25 tax; 26 (2) was 20 years of age or younger or 65 years of age or older on 27 January 1 of the tax year; or 28 (3) has had the full tax due under AS 43.45.011 for that tax year 29 withheld by another employer. 30 (d) If the tax is not deducted under (b) of this section from the salary or other 31 compensation of an individual subject to the tax, and the individual has not filed a
01 return and paid the tax under (a) of this section, notwithstanding AS 09.35, the 02 department may make a return under AS 43.05.050. 03 (e) An employer required to withhold tax under (b) of this section shall file a 04 report not later than January 31 following each tax year showing the total withholding 05 for each employee during the tax year. The report shall be filed in a form and manner 06 prescribed by the department. An employer who fails to file a report under this 07 section is subject to a penalty of $50 a day not to exceed $2,500. 08 (f) If the full amount required under (b) of this section has been deducted and 09 withheld from each payroll of an employee employed in a regional educational 10 attendance area but not residing in a regional educational attendance area on January 1 11 of the tax year, the department shall consider the employee's tax obligation satisfied, 12 and the employee is not required to file a return under (a) of this section, even if the 13 total amount deducted and withheld was less than the full amount of the tax calculated 14 under AS 43.45.011(b). 15 Sec. 43.45.031. Record of withholding. An employer who withholds tax 16 under AS 43.45.021 shall furnish to the employee upon request a record of the amount 17 of tax withheld from the employee. The department shall provide a form for that 18 purpose. 19 Sec. 43.45.041. Refunds. An individual who has paid more than the amount 20 of tax due under this chapter for a calendar year may claim a refund under 21 AS 43.05.275. A claim for a refund under this section may only be filed during the 22 calendar year following the tax year for which the refund is claimed and on a form and 23 in the manner prescribed by the department. The department is not required to issue a 24 refund to an employer. 25 Sec. 43.45.051. Disposition of tax proceeds. (a) The tax collected under 26 AS 43.45.021 shall be deposited into the general fund and accounted for separately. 27 (b) The legislature may appropriate the estimated amounts to be collected and 28 separately accounted for under (a) of this section for education. 29 (c) The deposit required and appropriation authorized by this section are not 30 intended to create a dedication in violation of art. IX, sec. 7, Constitution of the State 31 of Alaska.
01 Sec. 43.45.099. Definitions. In this chapter, 02 (1) "family" means persons who are related by blood, marriage, or 03 adoption and who live in the same household on a permanent basis; 04 (2) "regional educational attendance area" means those portions of a 05 regional educational attendance area, as that term is defined in AS 14.60.010, that are 06 outside of a home rule or first class city; 07 (3) "tax year" means the calendar year for which the tax levied in 08 AS 43.45.011 is imposed. 09 * Sec. 5. This Act takes effect January 1, 2006.