Legislature(2019 - 2020)
2020-01-27 House JournalFull Journal pdf
2020-01-27 House Journal Page 1467 HB 215 HOUSE BILL NO. 215 by the House Rules Committee by request of the Governor, entitled: "An Act relating to unemployment insurance contribution rates; and providing for an effective date." was read the first time and referred to the Labor & Commerce and Finance Committees. The following fiscal note(s) apply: 1. Fiscal, Dept. of Labor & Workforce Development The Governor's transmittal letter dated January 21 follows: 2020-01-27 House Journal Page 1468 "Dear Speaker Edgmon: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to unemployment insurance employer contribution rates. In Alaska, the Unemployment Insurance Tax is one of the primary taxes that employers must pay. Alaska is the only state that currently has a fixed minimum tax rate contribution of one percent. This minimum tax is assessed on businesses, irrespective of an employers' experience factor. Currently, AS 23.20.290(c) requires employers to make contributions of not less than one percent in unemployment insurance taxes. This bill lowers the minimum tax rate for employers in rate classes 1-9 from the existing one percent, to a rate correlated to the employer's experience factor. Experience factors for classes 1-9 range from 0.4 to 0.9 percent. These changes are intended to address the disproportionately high employer tax rate contributions for small business employers. This legislation reduces the tax burden on Alaska businesses and employers, while preserving the health of the Alaska Unemployment Trust Fund, ensuring that Alaska workers are able to access benefits when necessary. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor"