Juneau -- Representative Alan Austerman (R-Kodiak) has signed on as co-sponsor of House Bill 307, referred to as the Corporate Income Tax Reform Act of 2000.

HB 307 helps small Alaskan businesses by exempting the first $10,000 of corporate income from taxes. This exemption gives small corporations a chance to reinvest their initial profits into growing their business. This legislation also captures additional revenue from larger corporations that operate in other states or countries.

All corporations operating in the State of Alaska are expected to pay 9.4% on corporate profits over $90,000. This is a simple calculation for those entities that only operate in Alaska. Some of the larger corporations though operate around the world. Their income tax is based on a "modified apportionment," based on a percentage of worldwide profits.

According to the prime sponsor, Representative Eric Croft (D-Anchorage), the repeal of the separate accounting system in 1981 has created a loss of more than $4.6 billion to the people of Alaska. Austerman said, "At the current production levels of oil and a long-term estimate of over $15 per barrel price of that crude, the return to the separate accounting system would produce tens of millions of dollars of additional income over the next several years." Austerman continued, "To close Alaska's budget gap, we need to generate additional revenues. Everything is on the table."

| Top | Representative Austerman's Page |