"An Act imposing a tax on employment; and providing for an effective date. "

HB 263 would impose a tax of $10 per year on each employed individual age 19 or older, including the self-employed. Under this bill, the employer would deduct $10 from each employee's salary on his or her first regular payroll after January 1, 2006. A provision has been added to prevent this tax from being deducted more than once when the employee provides proof to their new employer that the tax has already been satisfied. The tax will not apply to individuals not required to file a federal income tax return under 26 U.S.C. (Internal Revenue Service Code).

The tax collected under AS 43.45.021 would be deposited into the state's general fund, but accounted for separately. In turn, the legislature may then appropriate the amounts collected under this section for education.

This authorization is not intended to create a dedication of funds in violation of art. IX. 7, of the Constitution of the State of Alaska.

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