Last Thursday, I hosted a town hall in Ketchikan to discuss the revenue options for the upcoming special session. Our primary topic was Governor Walker’s wage and self-employment tax bill that he submitted for the Legislature’s consideration. I plan to propose an amendment to his bill, part of which I’ve outlined below.
His proposal calls for a 1.5 percent flat tax on wages or self-employment income that includes a capped amount of $2,200.00, which would be the amount owed by an individual making $170,000 annually. I plan to introduce a 50% deduction to the 2.65 mill. levy property tax that any Alaskan Resident living within a borough currently pays. That portion of the levy is currently being collected by borough governments throughout the state and goes towards the State’s contribution to statewide education costs. An example of how this would work, if my amendment is adopted, is as follows:
The deduction would be allowed on only one primary residence property and it could be taken by only one person who resides in that property. If a person’s primary residence is valued at $284,000, the 2.65 mill. portion of their property tax would be $752.60 If that same person made $100,000 in wages/salary, their 1.5 percent tax bill under the Governor’s proposal would be $1,500. Deducting 50% of the 2.65 mill. levy amount would mean the person could deduct $376.30 from that $1,500. They would owe $1,123.70.
My primary job as a state legislator is to represent the
interests of the people who live in District 36. I have heard many comments from my constituents that it is unfair that we pay a tax that goes towards state expenditures for education and those that don’t live in boroughs don’t pay that tax. If my amendment is adopted, it would partially remedy that unfair situation.
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