Budget & Taxes (Business Taxes) in Alaska

in committee · Alaska · Senate Jun 20, 2026

SB 3002: An Act relating to the elimination of income taxes on pass-through entities.

This bill repeals a specific section of Alaska state law that currently imposes income taxes on pass-through entities, such as sole proprietorships, partnerships, and S corporations. The elimination of this tax liability is scheduled to take effect on January 1, 2028. By removing this requirement, the legislation aims to alter how these specific business structures are taxed within the state.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Alaska · House Jun 20, 2026

HB 3002: An Act relating to the elimination of income taxes on pass-through entities.

This bill proposes to remove the state income tax on pass-through entities, which are businesses where income is passed directly to owners rather than being taxed at the corporate level. The change would take effect on January 1, 2028, by repealing the specific section of the tax code that currently imposes this tax. Directly affected individuals and businesses would no longer pay state income tax on their earnings from these types of enterprises. The legislation does not alter how other forms of income are taxed or change the tax rates for corporations.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Income Tax Sales Tax

in committee · Alaska · Senate Apr 20, 2026

SB 275: An Act relating to natural gas and natural gas projects; relating to the Alaska Gasline Development Corporation; relating to the powers and duties of the Legislative Budget and Audit Committee; relating to the value of certain oil and gas; relating to an income tax on certain natural gas-related entities; relating to the oil and gas production tax; establishing a surcharge on gas processed in the state; and providing for an effective date.

This bill updates the powers and duties of Alaska's Legislative Budget and Audit Committee, giving it expanded authority to oversee state agencies and review financial matters. It requires the committee to conduct annual post audits of several state entities, including the Alaska Gasline Development Corporation, and to evaluate how public lending affects employment, wages, and economic sectors. The legislation also clarifies the committee's ability to subpoena documents, sue on behalf of the legislature during interim sessions, and make recommendations on state budget policies. Additionally, it establishes a surcharge on natural gas processed within the state and adjusts tax provisions related to oil and gas production and income for certain energy-related entities.

Topics ✓ Budget & Taxes

Sub-Topics Audits & Accountability Business Taxes Fees & Licensing

in committee · Alaska · House Apr 30, 2026

HB 350: An Act establishing an income tax on certain entities in the state; and providing for an effective date.

HB 350 proposes a new 9.4% state income tax on businesses structured as sole proprietorships, partnerships, LLCs, or S-corporations (referred to as "qualified entities") with taxable income exceeding $25 million in a single year. The tax applies only to income above this threshold, calculated using federal C-corporation rules while disallowing most federal tax credits or deductions. It excludes businesses already taxed under other state provisions and takes effect for tax years beginning January 1, 2026. This bill would create a new tax obligation for large pass-through entities, distinct from existing corporate tax structures.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Revenue Sales Tax

in committee · Alaska · House Jan 20, 2026

HB 245: An Act relating to workers' compensation tax rate and service fees; and relating to electronic service of workers' compensation documents.

HB 245 sets a 4% tax on workers' compensation insurance premiums for insurers and establishes annual service fees: 2.9% of employer payments (excluding second injury fund payments) for businesses, and 2.5% of insurers' workers' compensation premium income. These fees fund the state's workers' safety programs and workers' compensation administration. The bill also requires electronic service of workers' compensation documents and allows the board to adjust fee percentages annually (capped at 4%). It directly affects insurers, self-insured employers, and the state's workers' compensation program.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Business Taxes Workers' Compensation

in committee · Alaska · House Jan 23, 2026

HB 268: An Act relating to the taxation of electric cooperatives; relating to the taxation of electricity generation and electricity storage facilities; and providing for an effective date.

HB 268 exempts electric cooperatives from state and local property, income, and excise taxes. It also creates tax exemptions for new electricity generation and storage facilities built after July 1, 2024, if operated by public utilities or serving only other utilities or new customers without prior service as of July 2026. The bill adjusts tax refund rules, requiring local governments to receive refunds based on where cooperative revenue was earned, except when earned outside city limits. The changes take effect July 1, 2026.

Topics ✓ Budget & Taxes ✓ Energy

Sub-Topics Business Taxes Sales Tax Tax Incentives

in committee · Alaska · Senate May 18, 2026

SB 227: An Act relating to the Multistate Tax Compact; relating to apportionment of income to the state; establishing a state sales and use tax; relating to taxes levied by cities and boroughs; relating to the corporate income tax; authorizing the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement or substantially similar agreement; relating to the oil and gas production tax; establishing an infrastructure maintenance surcharge on oil; establishing a pipeline corridor maintenance fund; and providing for an effective date.

SB 227 establishes a new state-level sales and use tax in Alaska, replacing the current system where local governments collected taxes. It allows boroughs and cities to levy local sales taxes under state administration, authorizes the Department of Revenue to join the Streamlined Sales and Use Tax Agreement, and adds an infrastructure maintenance surcharge on oil production. The bill also modifies corporate income tax rules, creates a pipeline corridor maintenance fund, and adjusts how local taxes are collected and distributed. These changes directly affect businesses, oil producers, and local governments managing tax revenues. The bill aims to simplify tax collection and fund infrastructure maintenance through new revenue streams.

Topics ✓ Budget & Taxes ✗ Energy ✓ Transportation

Sub-Topics Business Taxes Fees & Licensing Sales Tax Oil & Gas Pipeline Infrastructure

in committee · Alaska · House Mar 3, 2025

HB 94: An Act relating to the registration of marijuana establishments; relating to a tax exemption for qualified small businesses; relating to marijuana taxes; and providing for an effective date.

HB 94 changes marijuana business registration from biennial to annual, requiring the state board to issue permits within 45-90 days or allow applicants to submit directly to local authorities if delays occur. It establishes a tax exemption for qualified small marijuana businesses and permits local governments to set annual registration and application fees. The bill also clarifies that if voters ban marijuana businesses locally, existing registrations expire 90 days after election results are certified, with limited extensions for expired permits during that period. These provisions directly affect marijuana businesses, local governments, and state regulators.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

in committee · Alaska · House May 12, 2025

HB 30: An Act establishing the office of entrepreneurship; relating to new businesses in the state; relating to reports concerning procurements by agencies; and relating to initial business license fees for new businesses in the state.

HB 30 creates an Office of Entrepreneurship within the Department of Commerce to support new businesses in Alaska. It requires state agencies to annually report on contracts with new businesses, including demographic details and geographic locations, and to suggest ways to improve access for these businesses. The bill also waives the initial $50 business license fee for new businesses (as defined by state law) and mandates the Office to issue an annual report on legislation affecting new businesses. These changes aim to streamline support for new business growth and increase transparency in government contracting.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Fees & Licensing Procurement Tags Small Business

signed · Alaska · House Jul 30, 2025

HB 123: An Act relating to vehicle rental taxes; relating to the issuance of subpoenas related to tax records; and providing for an effective date.

HB 123 adjusts Alaska's passenger vehicle rental tax rates, imposing a 9% tax on traditional rentals (not arranged through a platform) and a 7% tax on rentals arranged through a vehicle rental platform. It requires platforms handling over 200 annual transactions to collect and pay the tax, provide related records to the Department of Revenue, and specifies platforms aren't liable for tax collection failures if they made reasonable efforts to obtain accurate information from vehicle providers. The bill also clarifies that the Department of Revenue can seek court orders to compel compliance with subpoenas for tax records, strengthening enforcement mechanisms.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes

All budget & taxes bills