In my most recent column for State Tax Notes, I look at the numbers in the Alaska Department of Revenue’s (DOR) spring 2023 revenue forecast, which the governor and Legislature rely on for budget discussions during the legislative session. I also provide a summary of some of the bills legislators introduced during the last session that would increase existing taxes or impose new ones.

As a result of lower predicted oil prices and reduced production, DOR lowered its 2023 spring forecast for unrestricted general fund revenue from that of its official fall 2022 forecast by $246 million for fiscal 2023 and $679 billion for fiscal 2024. Among the tax bills under consideration during the most recent legislative session—some of which were put forward thanks to the “comparatively less rosy” revenue forecast—were:

  • H.B. 109: Would remove eight of nine existing corporate tax brackets and leave a single tax rate, so that corporations with taxable income over $25,000 would be taxed at a flat 2% rate.
  • H.B. 134: Would prohibit a borough, city, or the state from levying a tax on the transfer of real property.
  • H.B. 142: Would impose a 2% tax on all sales of goods and services purchased in Alaska. Would allows the Legislature to share half the tax revenue with municipalities that meet certain criteria.
  • S.B. 114: Would impose a new income tax and substantially increase the oil and gas production tax.
  • S.B. 120: Would expand the education credits that are available for use against a variety of state taxes.

Look for my next State Tax Notes column, in which I will provide an update of how the bills fared.

You can read the full article here.