Alaska governor to introduce sales tax bill amid several tax proposals to close budget gap

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Alaska governor to introduce sales tax bill amid several tax proposals to close budget gap
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The Alaska Legislature has seen several proposals for statewide taxes this session, and that will apparently also include a sales tax bill from Gov. Mike Dunleavy. AlaskaBeacon reporter James Brooks fills us in on Alaska News Nightly. Take a listen:

The front of the Alaska State Capitol in Juneau is seen on Wednesday, April 12, 2023.

The Alaska Legislature has seen several proposals for statewide taxes this session, and that will apparently also include a sales tax bill from Gov. Mike Dunleavy. There are some other tax bills filed, including a different sales tax proposal, an income tax proposal and two bills that would make changes to how oil companies are taxed. All of them are aimed at reducing budget deficits, as lawmakers try to fund state services and Permanent Fund dividends without making huge cuts.

Alaska Beacon reporter James Brooks says that, in closed door meetings with legislators Tuesday, Dunleavy said he planned to introduce a bill that would institute a 2% sales tax. But, Brooks notes, as of Wednesday, details were still scarce and any tax proposal would be tough to pass in the few weeks remaining in the session.: It really seems like a stretch to think that there’ll be significant action this year. The Legislature can always surprise you.

One of the big things that came out of Tuesday’s meetings with the House and Senate was that the governor seems to be changing his position on new taxes. I don’t know that for sure, because I haven’t heard it directly from him, but in prior statements, during his first term in office, the governor said that any statewide broad-based tax needs to be approved in a vote of the people, a statewide referendum. In these meetings, legislators said the governor didn’t mention that idea anymore.

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