All Roll Calls
Yes: 120 • No: 80
AlaskaSB 11334th Legislature (2025-2026)Senate
APPORTION TAXABLE INCOME;DIGITAL BUSINESS
Sponsored By: SENATE RULES
Vetoed
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 1 costs, 4 mixed.
Audit protections and tax arbitration for businesses
Compact audit information stays confidential and is shared only for tax purposes with member states, their local governments, or federal authorities. The Multistate Tax Commission cannot charge taxpayers audit fees, and the compact adds no longer recordkeeping period. Businesses can seek arbitration after a final administrative decision they claim causes taxation by two or more member jurisdictions. They must use the compact’s income-division rules, or face substantially identical rules, and notify the commission and each affected government in writing. The arbitration decision is final for dividing or assigning the disputed income.
Extra reports for corporations breaking tax rules
Beginning January 1, 2026, Alaska’s Department of Revenue can require added reports from corporations filing under its corporate-group reporting rules. This applies when a corporation or affiliate violates applicable regulations, including disclosure spreadsheet requirements. It also applies when they fail to provide information needed to audit the return within a reasonable time. The added report must be prepared without applying the highly digitized business rule.
Digital businesses use sales-based Alaska taxes
For tax years starting on or after January 1, 2026, covered digital businesses calculate Alaska’s share of income using sales alone. Businesses qualify when at least 50% of Alaska sales fall within the listed categories, combined. These include electronically delivered intangible goods and services, plus computer, electronic-transmission, and Internet-related services delivered in Alaska. They also include goods delivered in Alaska from Internet sales where the Internet is customers’ main access method. The department can require this treatment for activity it identifies as highly digitized; specified public utilities and telecommunications utilities are excluded.
New Alaska tax rules for multistate businesses
For tax years beginning January 1, 2026, Alaska changes how multistate businesses divide taxable income among states. Covered income includes regular business income and related property income that the Constitution allows states to divide. The sales calculation uses regular business receipts but excludes hedging and specified cash or securities transactions. Covered sales follow the market: property location, service delivery, or use of rights and other intangible property. Businesses must reasonably estimate unclear locations; sales leave the total calculation when unassignable or assigned where the business is not taxable.
Special Alaska taxes for oil and pipelines
For tax years beginning January 1, 2026, special rules cover businesses producing Alaska oil or gas or operating Alaska pipelines. The income base starts with the combined business’s federal taxable income. Adjustments add back deducted income taxes, capitalize drilling and development costs, recalculate percentage depletion using cost, and apply specified depreciation rules. The formulas average property and sales for non-production/non-pipeline activity, or property and extraction for production without pipelines. Businesses with both production and pipelines average sales, property, and extraction to calculate Alaska’s share.
Water carriers use special Alaska tax rules
For tax years beginning January 1, 2026, water transportation carriers use special rules to calculate Alaska’s share of covered income. The property, payroll, and sales calculations count in-state activity and use port-time ratios for covered interstate operations. Days in port equal hours in port divided by 24. Time idled because of strikes, repairs, or seasonal reductions does not count.
Sponsors & Cosponsors
Sponsor
SENATE RULES
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 1/22/2026
GOVERNOR VETO SUSTAINED Y35 N25
Yes: 35 • No: 25
House vote • 5/7/2025
EFFECTIVE DATE(S) ADOPTED Y32 N8
Yes: 32 • No: 8
House vote • 5/7/2025
PASSED Y26 N14
Yes: 26 • No: 14
House vote • 5/5/2025
MOTION TO TABLE BILL FAILED Y11 N29
Yes: 11 • No: 29
Senate vote • 4/15/2025
PASSED Y16 N4
Yes: 16 • No: 4
Actions Timeline
(S) JOINT SESSION at 09:00 AM HOUSE CHAMBER
1/22/2026Senate(S) GOVERNOR VETO SUSTAINED Y35 N25
1/22/2026Senate(S) MOTION TO OVERRIDE VETO
1/22/2026SenateAudio/Video
1/22/2026House(S) VETOED BY GOVERNOR 9/27/25
10/15/2025Senate(S) 10:00 A.M. 9/8/25 TRANSMITTED TO GOVERNOR
10/15/2025Senate(H) Minutes (HFIN)
5/8/2025House(H) <Bill Hearing Canceled> -- Delayed to 2:00 pm --
5/8/2025House(H) FINANCE at 01:30 PM ADAMS 519
5/8/2025House(H) VERSION: SB 113
5/7/2025House(H) RETURN TO (S), TRANSMIT TO GOVERNOR NEXT
5/7/2025House(H) EFFECTIVE DATE(S) ADOPTED Y32 N8
5/7/2025House(H) PASSED Y26 N14
5/7/2025House(H) READ THE THIRD TIME SB 113
5/7/2025House(H) -- MEETING CANCELED --
5/5/2025House(H) FINANCE at 09:00 AM ADAMS 519
5/5/2025House(H) ADVANCED TO THIRD READING 5/7 CALENDAR
5/5/2025House(H) MOTION TO TABLE BILL FAILED Y11 N29
5/5/2025House(H) READ THE SECOND TIME
5/5/2025House(H) RULES TO CALENDAR 5/5/2025
5/5/2025House(H) FN1: (REV)
5/5/2025House(H) NR: JOHNSON
5/5/2025House(H) DNP: ALLARD, TOMASZEWSKI
5/5/2025House(H) DP: STAPP, BYNUM, HANNAN, GALVIN, JIMMIE, FOSTER, JOSEPHSON, SCHRAGE
5/5/2025House(H) FIN RPT 8DP 2DNP 1NR
5/5/2025House
Bill Text
Enrolled SB 113
5/7/2025
SB 113
2/26/2025