Governor Bill Walker proposed a statewide income tax for Alaska today during his presentation of a sustainable fiscal plan.
Gov. Walker: “We’re going to propose a small income tax, a broad-based income tax. An about 1.5 percent net on the earnings for Alaskans. It’s a broad base, it will certainly bring an income from out-of-state workers that earn their living in Alaska, so we welcome them to our challenge and our opportunity here in Alaska.”
This will be the first time Alaskans pay directly into the state government since 1980 and Walker’s administration estimates it could generate an additional $200 million in revenue each year.
Additionally, Governor Walker’s fiscal plan laid out a variety of revenue-generating measures like a one percent commercial fishing surtax, a fee for alcohol, and a $1 tax on each pack of cigarettes.
The governor says as the state continues to cut another $200 million from the budget over the next three years, some of Alaska’s oil and gas tax program will be changed.
Gov. Walker: “We’re proposing a change to oil tax credits, turning that into a low-interest, long-term loan. We’ve met with many of the companies that rely upon that, we don’t want to negatively impact the industry in any way but we need to continue to know that we have the funding going forth to provide the services that we have.”
Tourism tax exemptions are also set to be eliminated in this fiscal plan.
Governor Walker says the plan is a work in progress and the fiscal conversation is set to continue when the legislature convenes in January.