On Friday, February 17, Alaskans have the opportunity to testify on HB 115, the proposed fiscal solution for the state proposed by the House Finance Committee. The bill combines earnings from the Permanent Fund with an income tax to generate state revenue.
The proposal would draw 4.75 percent of the market value from the Permanent Fund Earnings Reserve Account. Two-thirds of the draw - about $1.5 to $2 billion - would go to the state’s General Fund to pay for state operations. The remaining one-third would support Alaskans' Permanent Fund Dividends, which would start around $1,100.
The bill would also create a state income tax that would generate an estimated $655 million annually. The tax would collect 15 percent of an individual’s federal income tax, or $25, whichever is greater. Capital gains would be taxed at 10 percent. Residents would have the option to use their Permanent Fund Dividend to pay the tax and receive overpayment as a refund.
The House Finance Committee will hear public input on HB 115 this afternoon from 1:30 p.m. to 3:30 p.m. Comments will be limited to two minutes per testifier and written comments will also be accepted. Yukon-Kuskokwim Delta residents can testify from the Bethel Legislative Information Office or by calling, toll-free, 844-586-9085 or 907-586-9085.
