- Associated Press - Tuesday, February 14, 2017

JUNEAU, Alaska (AP) - State revenue officials estimate it would cost $14 million to develop software and otherwise build a system that would allow the state to administer a personal income tax.

Legislation introduced in the Alaska House calls for a tax of 15 percent of the amount one pays in taxes to the federal government, or $25, whichever is greater.

The Department of Revenue estimates it would need up to 60 more staff to fully implement an income tax. The department says that’s a rough estimate and that it would develop a plan to refine the numbers if the bill passed.

Critics of a tax have cited implementation costs as a concern, but some legislators see a broad-based tax as a key piece for a fiscal plan.

The department estimates that tax provisions in the bill would generate about $320 million next year and double that the following fiscal year, the first full year of implementation.



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