PRIA Logo™
AlaskaHB 28034th Legislature (2025-2026)House

APPORTION TAXABLE INCOME

Sponsored By: HOUSE RULES

Vetoed

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

10 provisions identified: 5 benefits, 0 costs, 5 mixed.

Buyers get credit for taxes paid elsewhere

Beginning January 1, 2027, buyers who owe use tax on tangible property get credit for taxes paid elsewhere. The credit covers sales or use taxes legally imposed and paid on the same property to another state or locality. It applies first against state use tax, then against local use tax. This helps prevent taxing the same purchase twice.

Small sellers get simpler tax filing

Beginning January 1, 2027, sellers required to file income tax returns can choose a simpler report in participating jurisdictions. Sales must be their only activity there, with no owned or rented real estate or tangible personal property. Annual sales there must be $100,000 or less. Sellers pay a percentage of those sales that reasonably matches the tax otherwise due. The Multistate Tax Commission can adjust the limit for inflation no more than once every five years.

Compact audits protect taxpayers without fees

Beginning January 1, 2027, the Multistate Tax Commission cannot charge taxpayers for audits under the Compact. Information collected through those audits is confidential. It is available only for tax purposes to participating states, their localities, or the United States. Disclosure must follow the audited jurisdictions’ laws and pass through their appropriate agencies or officers.

Multistate taxpayers can choose tax methods

For tax years beginning January 1, 2027, or later, qualifying multistate taxpayers can choose how to divide income for tax purposes. They must face income tax and income division across at least two participating states or localities. Each year, they can choose applicable state or local rules or Article IV of the Multistate Tax Compact. They can make a separate choice for each participating state or locality.

Vendors gain protection for buyer exemptions

Beginning January 1, 2027, vendors are protected from sales or use tax liability on qualifying exempt transactions. The buyer must provide a resale certificate, another exemption certificate, or other written proof authorized by the taxing authority. The vendor must receive and accept that proof in good faith.

Broadcasters get new Alaska sales rules

For tax years beginning January 1, 2027, or later, television networks, cable networks, and platform distributors use special Alaska income rules. Advertising and licensing income tied to film programming used in Alaska counts as Alaska sales when the customer is based there. A commercial customer’s location is its main place of business direction or management. For a noncommercial customer, the broadcaster uses the address in its records.

Businesses face new Alaska income rules

For tax years beginning January 1, 2027, or later, Alaska defines income shared across states within constitutional and state-law limits. This includes regular business income and income from related property. Regular business receipts count in the sales formula unless separately assigned; hedging receipts and specified cash or securities dealings are excluded. Non-tangible-property sales follow the market’s location, based on property location, service delivery, or intangible-property use, with reasonable estimates required. Sales are excluded from the formula’s total-sales denominator when their state cannot be determined or reasonably estimated, or the business is not taxable there.

Financial institutions get new income rules

For tax years beginning January 1, 2027, or later, financial institutions must follow the specified multistate income formula. Alaska’s Department of Revenue must adopt rules using the Multistate Tax Commission’s Appendix A formula and financial-institution definition. The required version was adopted November 17, 1994, and amended July 29, 2015. That definition determines which taxpayers are covered.

Taxpayers gain arbitration with possible costs

Beginning January 1, 2027, qualifying taxpayers can seek binding arbitration over income division that risks double or multiple taxation. They must challenge a final tax-agency decision affecting at least two participating states or localities. The Commission must first find a need for arbitration and adopt an implementing rule. Taxpayers must have chosen Article IV, or the relevant jurisdiction’s law must be substantially identical to it. Written notice must go to the Commission and each affected jurisdiction; the decision is final for the disputed income division. The board can assign arbitration expenses to the parties.

Telecom providers get Alaska sales rules

For tax years beginning January 1, 2027, or later, telecom providers, including mobile providers, use special Alaska income rules. Service sales count as Alaska sales when the income-producing work happens in Alaska. For work spanning several states, Alaska must have a greater share than any other state, measured by performance costs. Tangible personal property sales follow the Compact’s separate property-sales rule.

Sponsors & Cosponsors

Sponsor

  • HOUSE RULES

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 109 • No: 141

House vote • 5/20/2026

CONCUR AM OF (S) Y28 N11 A1

Yes: 28 • No: 11

Senate vote • 5/20/2026

PASSED Y17 N3

Yes: 17 • No: 3

House vote • 4/1/2026

PASSED Y22 N17 E1

Yes: 22 • No: 17

House vote • 3/30/2026

AM NO 1 FAILED Y19 N19 E2

Yes: 19 • No: 19

House vote • 3/30/2026

AM NO 3 FAILED Y4 N34 E2

Yes: 4 • No: 34

House vote • 3/30/2026

AM NO 2 FAILED Y18 N20 E2

Yes: 18 • No: 20

House vote • 3/30/2026

AM NO 4 FAILED Y1 N37 E2

Yes: 1 • No: 37

Actions Timeline

  1. (H) VETOED BY GOVERNOR 6/18/26

    6/20/2026House

  2. (H) 10:44 A.M. 6/1/26 TRANSMITTED TO GOVERNOR

    6/4/2026House

  3. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/20/2026House

  4. (H) CONCUR AM OF (S) Y28 N11 A1

    5/20/2026House

  5. (H) CONCUR MESSAGE TAKEN UP

    5/20/2026House

  6. (H) CONCUR MESSAGE RECEIVED

    5/20/2026House

  7. (S) VERSION: SCS CSHB 280(FIN)

    5/20/2026Senate

  8. (S) TRANSMITTED TO (H) AS AMENDED

    5/20/2026Senate

  9. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/20/2026Senate

  10. (S) PASSED Y17 N3

    5/20/2026Senate

  11. (S) READ THE THIRD TIME SCS CSHB 280(FIN)

    5/20/2026Senate

  12. (S) FINANCE at 01:30 PM SENATE FINANCE 532

    5/19/2026Senate

  13. (S) ADVANCED TO THIRD READING 5/20 CAL

    5/19/2026Senate

  14. (S) FIN SCS ADOPTED UC

    5/19/2026Senate

  15. (S) READ THE SECOND TIME

    5/19/2026Senate

  16. (S) RULES TO CALENDAR 5/19/2026

    5/19/2026Senate

  17. Audio/Video

    5/19/2026House

  18. (S) FN2: (REV)

    5/18/2026Senate

  19. (S) NR: STEDMAN, KAUFMAN, CRONK, MERRICK, KIEHL

    5/18/2026Senate

  20. (S) DP: OLSON, HOFFMAN

    5/18/2026Senate

  21. (S) FIN RPT SCS 2DP 5NR SAME TITLE

    5/18/2026Senate

  22. (S) Moved SCS CSHB 280(FIN) Out of Committee -- Please Note Time Change --

    5/16/2026Senate

  23. (S) FINANCE at 09:00 AM SENATE FINANCE 532

    5/16/2026Senate

  24. Audio/Video

    5/16/2026House

  25. (S) Minutes (SFIN)

    5/14/2026Senate

Bill Text

Related Bills

Back to State Legislation