SB 50: "An Act imposing an annual educational facilities maintenance and construction tax on net earnings from self-employment and wages; relating to the administration and enforcement of the educational facilities maintenance and construction tax; and providing for an effective date."
00 SENATE BILL NO. 50 01 "An Act imposing an annual educational facilities maintenance and construction tax on 02 net earnings from self-employment and wages; relating to the administration and 03 enforcement of the educational facilities maintenance and construction tax; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 23.05.060 is amended to read: 07 Sec. 23.05.060. Powers of the department. The department may 08 (1) enforce all state labor laws; 09 (2) act as mediator and appoint deputy commissioners of conciliation 10 in labor disputes whenever it considers the interest of industrial peace requires it; 11 (3) make investigations and collect and compile statistical information 12 concerning the conditions of labor generally and upon all matters relating to the 13 enforcement of this chapter; 14 (4) institute court proceedings against an employer of labor without
01 cost to the employee when it is satisfied that the employer has failed to pay an 02 employee an amount due by contract; 03 (5) issue cease and desist orders and other orders and regulations 04 necessary for the enforcement of state labor laws; 05 (6) in accordance with AS 37.07 (the Executive Budget Act), receive 06 and spend money derived from agreements with local governments, nongovernmental 07 organizations, or other persons; 08 (7) if requested under AS 43.45.021(e), collect or coordinate 09 collection and reporting of the educational facilities maintenance and 10 construction tax. 11 * Sec. 2. AS 43 is amended by adding a new chapter to read: 12 Chapter 45. Educational Facilities Maintenance and Construction Tax. 13 Sec. 43.45.011. Tax imposed. (a) A tax of $30 is imposed on wages and on net 14 earnings from self-employment of every 15 (1) resident individual; and 16 (2) nonresident and part-year resident individual with income from a 17 source in the state. 18 (b) For purposes of (a) of this section, the wages and the net earnings from 19 self-employment of a 20 (1) resident are the total annual wages and the net earnings from self- 21 employment of the resident; 22 (2) nonresident or part-year resident are the annual wages and the net 23 earnings from self-employment of the nonresident or part-year resident that are 24 attributable to a source in the state. 25 Sec. 43.45.021. Collection of tax by employer. (a) An employer shall deduct 26 and withhold the tax due under AS 43.45.011 from an employee's wages subject to 27 withholding under 26 U.S.C. 3401 - 3406 from the first regular payroll of the calendar 28 year. If the employee's first payroll is insufficient to cover the tax due, the employer 29 shall continue to deduct and withhold from subsequent payrolls until the tax due under 30 this chapter is fully withheld. The employer shall withhold any outstanding amount of 31 tax due under AS 43.45.011 from the final regular payroll of the calendar year.
01 (b) An employer is liable for the tax required to be withheld from an employee 02 unless the employer can demonstrate that the employer relied on proof provided by the 03 employee that the total tax for the calendar year imposed under AS 43.45.011 had 04 already been withheld under this section or paid under AS 43.45.031. A deduction of 05 the tax may not be made from the wages of an individual who provides proof to the 06 employer that the entire tax imposed under AS 43.45.011 on that individual for the 07 calendar year has already been withheld or paid under AS 43.45.031. The department 08 may impose a civil penalty on an employer in an amount up to five times the amount 09 of tax due from employees but not remitted to the department. The penalty shall be 10 imposed in the manner provided by AS 43.05.245. 11 (c) Tax withheld by an employer becomes due and shall be paid by an 12 employer to the department in accordance with regulations adopted by the department. 13 (d) An employer shall maintain a record of the amount deducted from the 14 wages of each employee and shall furnish an annual statement of the deductions to 15 each employee and to the department in accordance with regulations adopted by the 16 department. 17 (e) The department shall, if it will result in cost savings for the state in the 18 administration of the tax, for employers in the administration of the tax, or for both, 19 coordinate collection and reporting of the tax imposed in this chapter with the 20 collection and reporting of employment security contributions by the Department of 21 Labor and Workforce Development, including requesting that the Department of 22 Labor and Workforce Development collect the tax payments and remit them to the 23 department. 24 Sec. 43.45.031. Payment of tax by self-employed individual. A self- 25 employed individual shall remit to the department the tax due under AS 43.45.011 in 26 accordance with regulations adopted by the department. 27 Sec. 43.45.041. Refund of overpayments. (a) If an individual pays to the 28 department, directly or through withholding by an employer, an amount exceeding the 29 total tax imposed under this chapter during a calendar year and the individual applies 30 for a refund in accordance with regulations adopted by the department, the department 31 shall refund the overpayment to the individual.
01 (b) Interest on an overpayment may not be allowed under AS 43.05.280 if the 02 department refunds the overpayment within 90 days after the date the individual 03 correctly files the refund claim. 04 (c) The department may adopt regulations to coordinate refunds of 05 overpayments under this section with refunds of employment security contributions 06 under AS 23.20.165. 07 (d) An individual may apply for a refund under this section only during the 08 calendar year immediately following the calendar year in which the excess was paid. 09 Sec. 43.45.051. Report of payments to self-employed individuals. A person 10 required to report a payment to a self-employed individual to the federal government 11 under 26 U.S.C. shall also report that payment to the department in accordance with 12 regulations adopted by the department. 13 Sec. 43.45.061. Disposition of tax proceeds. (a) The tax and penalties 14 collected by the department under this chapter shall be deposited into the general fund 15 and accounted for separately. 16 (b) The legislature may appropriate the estimated amounts to be collected and 17 separately accounted for under (a) of this section into the educational facilities 18 maintenance and construction fund established under AS 37.05.560. Nothing in this 19 section creates a dedicated fund. 20 Sec. 43.45.099. Definitions. In this chapter, 21 (1) "employee" has the meaning given in 26 U.S.C. 3401; 22 (2) "employer" has the meaning given in 26 U.S.C. 3401; 23 (3) "net earnings from self-employment" has the meaning given in 26 24 U.S.C. 1402; 25 (4) "wages" has the meaning given in 26 U.S.C. 3401. 26 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REGULATIONS. The Department of Revenue may adopt regulations to implement 29 sec. 2 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), 30 but not before the effective date of sec. 2 of this Act. 31 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c).
01 * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect January 1, 2020.