Legislature(2021 - 2022)DAVIS 106
05/01/2021 11:30 AM House WAYS & MEANS
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| Audio | Topic |
|---|---|
| Start | |
| HB189 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 189 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
May 1, 2021
12:53 p.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Calvin Schrage
Representative Andi Story
MEMBERS ABSENT
Representative Mike Prax
Representative David Eastman
COMMITTEE CALENDAR
HOUSE BILL NO. 189
"An Act imposing an education tax on net earnings from self-
employment and wages; relating to the administration and
enforcement of the education tax; and providing for an effective
date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 189
SHORT TITLE: EMPLOYMENT TAX FOR EDUCATION
SPONSOR(s): WAYS & MEANS
04/26/21 (H) READ THE FIRST TIME - REFERRALS
04/26/21 (H) W&M, EDC, FIN
05/01/21 (H) W&M AT 11:30 AM DAVIS 106
WITNESS REGISTER
ROSE FOLEY, Staff
Representative Ivy Spohnholz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 189, on behalf of the House
Special Committee on Ways and Means, prime sponsor.
ACTION NARRATIVE
12:53:58 PM
CHAIR IVY SPOHNHOLZ called the House Special Committee on Ways
and Means meeting to order at 12:53 p.m. Representatives Story,
Josephson, Schrage, and Spohnholz were present at the call to
order. Representative Wool arrived as the meeting was in
progress.
HB 189-EMPLOYMENT TAX FOR EDUCATION
12:54:03 PM
CHAIR SPOHNHOLZ announced that the only order of business would
be HOUSE BILL NO. 189, "An Act imposing an education tax on net
earnings from self-employment and wages; relating to the
administration and enforcement of the education tax; and
providing for an effective date."
12:54:18 PM
ROSE FOLEY, Staff, Representative Ivy Spohnholz, Alaska State
Legislature, on behalf of the House Special Committee on Ways
and Means, briefly introduced HB 189. She explained that the
proposed legislation would establish an education tax. The bill
seeks to raise a small portion of the overall funding needed to
meet the constitutional obligation. She stated that Section 7,
Article 1, of the Alaska Constitution requires the establishment
and maintenance of a system of public schools. HB 189 would
help fulfill that. She noted that Alaska had some form of an
education tax from 1919 to 1980; therefore, the proposal is not
a new idea. The bill is estimated to raise $65-66 million
annually once fully implemented with approximately 20 percent of
the tax base attributed to nonresident workers. She added that
the measure contains an element of progressivity in the income
brackets that would determine the tax due.
12:55:31 PM
MS. FOLEY briefly summarized the sectional analysis of HB 189
[included in the committee packet], which read in its entirety
as follows [original punctuation provided]:
Section 1 adds a new chapter to AS 43 creating an
Education Tax.
Sec. 43.45.011 authorizes the Department of Revenue to
collect an education tax on wages and self-employment
earnings from a source in Alaska. The amount of tax
due is based on an individual's income and established
in statute.
Sec. 43.45.021 directs employers to withhold one-half
of the estimated tax due from each of an employee's
first two payrolls of the year and to maintain records
of the withholdings. The employer is required to
withhold the tax from the employee unless the employee
can prove they have already paid the tax due for the
calendar year.
Sec. 43.45.031 stipulates that a self-employed
individual will remit the tax required under AS
43.45.011.
Sec. 43.45.041 provides a mechanism for a taxpayer to
request a refund if an overpayment is made.
Sec. 43.45.051 requires a person to report to the
Department of Revenue any payments made to a self-
employed individual if reporting of that payment is
required by the Internal Revenue Service.
Sec. 43.45.061 directs proceeds from this tax to the
public education fund within the general fund.
Sec. 43.45.099 provides definitions for key terms in
this chapter.
Section 2 is uncodified law allowing the Department of
Revenue to adopt regulations to implement this act.
Section 3 provides an immediate effective date for
Section 2, the adoption of regulations.
Section 4 provides an effective date of January 1,
2022 for the Education Tax.
12:56:57 PM
CHAIR SPOHNHOLZ announced that HB 189 was held over.
12:57:28 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Ways and Means meeting was adjourned at
12:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 189 Workdraft version G 4.28.21.pdf |
HW&M 5/1/2021 11:30:00 AM HW&M 5/4/2021 5:30:00 PM |
HB 189 |
| HB 189 Sectional Analysis.pdf |
HW&M 5/1/2021 11:30:00 AM HW&M 5/4/2021 5:30:00 PM |
HB 189 |
| HB 189 Fiscal Note DOR-TAX 4.30.21.pdf |
HW&M 5/1/2021 11:30:00 AM HW&M 5/4/2021 5:30:00 PM |
HB 189 |
| HB 189 Sponsor Statement.pdf |
HW&M 5/1/2021 11:30:00 AM HW&M 5/4/2021 5:30:00 PM |
HB 189 |