Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxation Corporate Apportionment topic
No spam. Unsubscribe anytime.
Senate committee advances bill changing corporate apportionment for out‑of‑state businesses
Summary
The Senate Finance Committee on April 9 moved Senate Bill 113 out of committee. The bill would change Alaska's corporate tax apportionment to treat many out‑of‑state corporations the same as in‑state firms; sponsors say it is an apportionment change, opponents warned of potential pass‑through costs to Alaska consumers.
Juneau — The Alaska Senate Finance Committee on April 9 voted to report Senate Bill 113 from committee, a measure the bill sponsor described as an adjustment to how corporate income from out‑of‑state businesses is apportioned for Alaska tax purposes.
State Senator Bill Wilkowski, the bill's prime sponsor, told the committee that "Senate Bill 113 changes Alaska's corporate tax apportion system to tax outside corporations similarly to in state corporations. I want to emphasize this does not raise corporations at all." The committee, by unanimous consent, directed the bill out of committee with an attached fiscal note and individual recommendations.
The bill would revise how multistate corporations allocate taxable income to Alaska; Wilkowski and supporters characterized the change as aligning Alaska with apportionment rules used by many other states. At the hearing, Senator Kaufman said he feared the change could raise costs for Alaska consumers, asking "how do we know that these taxes won't just become additive to the cost that these, sellers are sending to Alaska" and warning the change could act as a backdoor sales tax on residents.
Committee discussion was limited; Senator Kiel moved the committee report, and the committee chair said, "Seeing none, that bill will pass from committee." The committee took a brief at‑ease so members could sign the report.
Why it matters: The committee action advances a structural tax change that, if later passed by the Legislature, would alter how income from multistate businesses is assigned to Alaska for corporation income tax purposes. Supporters say it closes a longstanding gap in apportionment; opponents cautioned about secondary effects on prices paid by Alaskans.
Next steps: SB 113 has been reported out of the Senate Finance Committee with a fiscal note and recommendations and will proceed through the legislative process for further consideration.
