Alaska Tax
Individual Income Tax Forms
No individual income tax
Corporate Income Tax Forms
Form 611X Amended Corporation Net Income Tax Return
Sales Tax Forms
No sales tax
Primary Concerns:
Alaska tax laws are singular amongst all the various state tax codes because it places a minimal tax burden on it residents, with the majority of its tax revenue coming from businesses that harvest the state’s significant natural resources and export them to other parts of the country and to the world.
There are many that feel that by being too dependent on corporate interests for revenue, that the state government is encouraged to offer less oversight and be more committed to the welfare of its resource exploitation than the needs of its citizens.
On the other side of the argument, Alaska, because of its vast territory (it is the largest state), many of its communities have not been incorporated into state government, meaning that the state lacks much of the infrastructure necessary to implement fair taxation across the entire population.
Also currently relevant is the fact that the Alaska state legislature in 2008 voted to raise taxes on oil companies working in Alaska, a measure that had many concerned that it could discourage new oil exploration and limit current harvesting in Alaska from corporations who could be more compelled to try to find oil from cheaper sources outside of the United States.
Income Taxes:
Alaska does not presently implement a state income tax for individual citizens, thus state withholding is unnecessary on the part of employers.
Corporate Income Taxes:
Corporate Income Taxes are determined in Alaska based on a progressive rate of income, generally between 1 to 9.4%, with 9.4% being the maximum. 9.4% is given on taxable income of $90,000 and over.
Payments are due by the fifteenth day of the third month after the tax year ends, which cannot be extended for any reason whatsoever.
Corporations in Alaska account for any company, including multinational organizations that conduct business in other states that earns income within the state, or within state controlled territory.
Natural Resource Taxes:
Alaska has a number of taxes related to specific enterprises that harvest the state’s national resources, such as fisheries, mining operations, and oil production. Generally there is tax on producers who draw income from fish or seafood sold out of state, as well as buyers who purchase the fish or seafood and export them out of state. The kinds of fish and seafood caught are also subjected to special taxation.
Mining taxes are based on a progressive system, requiring a flat rate on specific incomes and additional percent of the total income. Over $40,000 is $1200 plus 3% of total income. $50,000 is $1500 plus 5% of net income.
Oil production laws are the most comprehensive, since they form a large component of Alaska’s tax revenue. Generally, these taxes are progressive, bases on the market value of crude oil, which is measured by barrel. The lowest amount is 0% when barrels are $15 or less.
Alaska also levies a tax, usually between 1 to 3%, on income derived from gaming.
Property Taxes:
Property taxes in Alaska can be a very complicated matter, because most of the property in Alaska is untaxed. Out of 395 municipalities, only 162 have been incorporated, and of those only 18 form boroughs. In total, only 25 cities or municipalities in the entire state levy property taxes!
Alaska sets special property rates on properties which derive oil income, usually an additional two percent of assessed value of the property.
Sales Tax:
Alaska is one of only five states not to offer any form of sales tax, though 62 municipalities, many high population urban areas which sell high quantities of manufactured good, stipulate independent municipal sales taxes.
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