JUNEAU, Alaska (AP) — A Republican legislator has proposed a personal state income tax as Alaska grapples with projected multibillion-dollar deficits amid low oil prices.
Homer Rep. Paul Seaton introduced legislation Friday calling for a state tax of 15 percent of the federal tax a person pays on income from a source within Alaska, plus an additional amount for capital gains.
Residents and nonresidents would be expected to pay the tax on income made in Alaska, including money earned from wages and real estate here, and some investments.
In his sponsor statement, Seaton called it an equitable way to generate additional revenue.
The focus this session has been on reducing spending and the size of state government before looking to additional revenue sources.
The bill was referred to House Finance.