SSHB 146: "An Act imposing a school tax on certain income of residents, part-year residents, and nonresidents; relating to a payment against the school tax from the permanent fund dividend disbursement; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 146 01 "An Act imposing a school tax on certain income of residents, part-year residents, and 02 nonresidents; relating to a payment against the school tax from the permanent fund 03 dividend disbursement; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.23 is amended by adding a new section to read: 06 Sec. 43.23.092. Permanent fund dividend school tax payment. In 07 accordance with AS 43.45.011(d), the department shall prepare the Alaska permanent 08 fund dividend application to allow an applicant to direct the department to hold all or 09 part of the amount of the individual's permanent fund dividend for application against 10 the school tax imposed under AS 43.45.011. 11 * Sec. 2. AS 43.45 is amended by adding a new section to read: 12 Chapter 45. School Tax. 13 Sec. 43.45.011. School tax imposed; payment by dividend. (a) A tax is 14 imposed on the adjusted gross income of every
01 (1) resident individual; and 02 (2) nonresident and part-year resident individual with income from a 03 source in the state. 04 (b) For a taxpayer whose adjusted gross income is 05 (1) less than $20,000, the tax is $100 a year; 06 (2) $20,000 or more, but less than $40,000, the tax is $250 a year; 07 (3) $40,000 or more, but less than $50,000, the tax is $500 a year; 08 (4) $50,000 or more, but less than $75,000, the tax is $750 a year; 09 (5) $75,000 or more, but less than $100,000, the tax is $1,000 a year; 10 (6) $100,000 or more, but less than $150,000, the tax is $2,500 a year; 11 (7) $150,000 or more, but less than $200,000, the tax is $5,000 a year; 12 (8) $200,000 or more, but less than $250,000, the tax is $6,500 a year; 13 (9) $250,000 or more, the tax is $8,500 a year. 14 (c) For purposes of (b) of this section, 15 (1) the adjusted gross income of a 16 (A) resident is the total adjusted gross income of the resident; 17 (B) nonresident or part-year resident is the adjusted gross 18 income of the nonresident or part-year resident that is attributable to a source 19 in the state; 20 (2) the department shall assess the tax due on the adjusted gross 21 income of 22 (A) an individual, if the individual files a federal income tax 23 return only on the individual's own behalf; 24 (B) two or more individuals, including dependents, if those 25 individuals file one federal income tax return together; 26 (C) an individual, if the individual does not file a federal 27 income tax return. 28 (d) The department shall adopt regulations establishing procedures for an 29 individual eligible for a dividend under AS 43.23.005 to direct the department to hold 30 all or a part of the amount of the dividend to pay the tax due under this section. The 31 amount held under this section may not exceed the dividend amount after
01 contributions, garnishments, levies, fees, attachments, assignments, or other reductions 02 or donations allowed under AS 43.23. The department shall apply the amount held 03 under this section to the tax period in which the taxpayer applies for the dividend. The 04 department shall refund the amount of the dividend not applied against taxes under 05 this section to the individual who appears on the application for the dividend. 06 (e) An individual subject to tax under this section shall, upon request by the 07 department, furnish to the department a true and correct copy of the tax return that the 08 taxpayer has filed with the Internal Revenue Service. Every taxpayer shall notify the 09 department in writing of any alteration in, or modification of, the taxpayer's federal 10 income tax return and of a recomputation of tax or determination of deficiency, 11 whether with or without assessment. A full statement of the facts must accompany this 12 notice. The notice shall be filed within 60 days after the final determination of the 13 modification, recomputation, or deficiency, and the taxpayer shall pay the additional 14 tax or penalty under this chapter. In this subsection, "final determination" means the 15 time that an amended federal return is filed or a notice of deficiency or an assessment 16 is mailed to the taxpayer by the Internal Revenue Service; there is no final 17 determination for purposes of this subsection until the taxpayer has exhausted rights of 18 appeal under federal law. 19 (f) The department shall adopt regulations to implement this section, including 20 regulations that 21 (1) notwithstanding AS 43.05.225, set the annual interest rate of a 22 delinquent tax under this section at 18 percent; 23 (2) in addition to fees assessed under AS 43.05.245, establish a fee of 24 not more than $2,500 for the cost of collecting a tax delinquent under this chapter; 25 (3) at the discretion of the department, allow a taxpayer a 90-day 26 extension from the date the tax is due for the filing and payment of the tax and the 27 accrual of interest and fees; and 28 (4) determine the adjusted gross income subject to tax under this 29 section of two individuals who file jointly if at least one of the individuals is not a 30 resident of the state. 31 (g) The tax and penalties collected by the department under this section shall
01 be deposited into the general fund and accounted for separately. The legislature may 02 appropriate the estimated amounts to be collected and separately accounted for under 03 this subsection into the public education fund established in AS 14.17.300. Nothing in 04 this subsection creates a dedicated fund. 05 (h) In this section, "adjusted gross income" has the meaning given in 26 06 U.S.C. 62. 07 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 REGULATIONS. The Department of Revenue may adopt regulations to implement 10 sec. 2 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), 11 but not before the effective date of sec. 2 of this Act. 12 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 13 * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect January 1, 2018.