TAX & LICENSE / STATE TAX SYSTEM
Alaska Department of Revenue
550 W 7th Avenue
Anchorage 907-269-6620
www.tax.state.ak.us
Sales Tax & State Income Tax
www.tax.alaska.gov/programs/programs/index.aspx?10002
Anchorage has no sales tax and no state income tax. There is an 8 percent bed tax, a flat-rate aircraft tax, rental car tax, alcohol tax, fuel tax and tobacco tax.
Personal Income Tax
Alaska does not currently have personal income tax.
Property Tax
Property taxes on real and personal property are levied on full assessed value at mill rates that range from 7.91 to 18.15. The average property tax rate in Anchorage in 2002 was 8.95 mills, equivalent to $1,717 for every $100,000 of assessed value.
Alaska Permanent Fund
www.pfd.state.ak.us
The Alaska Permanent Fund was created in 1976 by a voter-approved amendment to the state constitution. It was designed to automatically receive 25 percent of state oil and gas royalties and other natural-resource revenues. The legislature today has control over appropriation of earnings but the principle can be invaded by way of a referendum voted on in a general election.
Like a savings account in the form of a public trust, the permanent fund earnings are the source for dividend payments. Every year, the fund distributes a portion of the earnings to eligible Alaska residents in the form of a dividend check. In order to qualify for the dividend, a person must be an Alaska resident for a minimum of one year and meet other eligibility requirements.
The amount of the dividend check varies from year to year depending on the fund’s earnings and the number of eligible applicants. Since everyone in Alaska is an equal beneficiary, residents take a keen interest in how the fund is managed. At time of publication the permanent fund was worth more than $24 billion and is invested globally in stocks, bonds and real estate. In third quarter 2002 the total market value of the fund earned about $3 million. The amount each qualified applicant received in 2002 was about $1500. For information about Alaska Permanent Fund Dividend eligibility, call the Department of Revenue at (907) 269-0370.
