New legislation introduced in the state House today proposes taxing Alaskans’ Permanent Fund dividends at 35 percent as a source of revenue for the state.
Representative Kurt Olson says the bill is meant as a last resort if the House and Senate members fail to reach an agreement on a plan to use parts of the permanent fund to finance state operations.
Olson is the chairman of the House Labor and Commerce Committee where the bill was introduced on Monday.
He says if last year’s dividend had been taxed by 35 percent it would have generated approximately $467 million in revenues.
Legislators are mulling various proposals to restructure the fund and allow for annual draws from the fund’s earnings as Alaska faces a multi billion-dollar deficit.
Tax bills and changes to the oil and gas tax credit system have also been proposed to raise revenues and cut expenditures.