Dividend tax proposed as stopgap measure, legislator says

JUNEAU, Alaska (AP) – Alaskans who receive an Alaska Permanent Fund dividend would pay a 35 percent tax on it under legislation proposed in the state House.

Rep. Kurt Olson says the bill is meant as a fallback if legislators fail to reach agreement on a plan to turn the permanent fund into an endowment of sorts. Olson is chairman of the House Labor and Commerce Committee, which introduced the bill Monday. He says that a 35 percent tax on last year's dividend would have generated about $467 million.

The state faces a multibillion-dollar budget deficit amid low oil prices. Legislators are mulling different proposals to restructure the fund and allow for annual draws from the fund's earnings. Tax bills and changes to oil and gas tax credits have also been proposed.

 

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