AlaskaVetoed bill proposed rules for assigning business income to Alaska
Vetoed HB 280 proposed rules for how some businesses would divide income among states when filing Alaska tax returns starting with tax years beginning in 2027.
What it does
Businesses operating in Alaska and elsewhere would divide income using property, payroll, and sales. Sales would generally count in Alaska based on where customers receive goods or services.
Broadcasters would count advertising and certain film-programming license income in Alaska when the customer was based here, using different location rules for business and noncommercial customers.
The Department of Revenue would set rules using a specified multistate formula to determine how financial institutions divide income among states.
Telecommunications providers, including mobile providers, would count certain sales in Alaska when service work happened here or a greater share of its cost happened here than in any other state.
Argument forUsing customer locations and where service work happens could help businesses assign income to states connected to their sales and services.
Argument againstBusinesses might have more income assigned to Alaska when customer locations or the cost of work point here, affecting how much income is taxed here.
More detail
Businesses would divide income among states using property, payroll, and sales, with sales generally assigned to where customers receive goods or services. These rules cover businesses with income taxable both in Alaska and at least one other state. The general rules exclude financial institutions, public utilities, and individuals who provide only personal services; a separate option applies to certain public utilities earning most income from activities covered by these rules. The bill proposed applying these rules to tax returns for tax years beginning on or after January 1, 2027, and set January 1, 2027, as its effective date.
Broadcasters would count certain advertising and film-programming license income in Alaska based on the broadcast customer's location. This covers television broadcast networks, cable program networks, and platform distribution companies. A commercial customer's location is its main place of business; a noncommercial customer's location is the address in the broadcaster's records. The bill proposed applying this rule to tax returns for tax years beginning on or after January 1, 2027, and set January 1, 2027, as its effective date.
The Department of Revenue would adopt rules for how financial institutions divide income among states. The requirement covers taxpayers that qualify as financial institutions under that formula. The rules would use a financial-institution formula adopted by the Multistate Tax Commission in 1994 and amended in 2015. The bill proposed applying this provision to tax returns for tax years beginning on or after January 1, 2027, and set January 1, 2027, as its effective date.
Telecommunications providers would count certain sales in Alaska based on where service work was done or where the greater share of its cost occurred. This covers telecommunications service providers, including mobile providers. For work done in more than one state, Alaska would count the sale only if a greater share of the work's cost occurred here than in any other state. This rule excludes sales of tangible goods covered by a separate rule. The bill proposed applying this rule to tax returns for tax years beginning on or after January 1, 2027, and set January 1, 2027, as its effective date.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 20(H) VETOED BY Governor Mike Dunleavy 6/18/26Latest
- Jun 4(H) 10:44 A.M. 6/1/26 Transmitted to GovernorTo Governor
- May 20(H) EFFECTIVE DATE(S) SAME AS PASSAGE
- Vote recorded (H) CONCUR AM OF (S) Y28 N11 A1 #2983. Result: pass.Lower
- Vote recorded (S) PASSED Y17 N3 #2843. Result: pass.Upper
- May 20(H) CONCUR AM OF (S) Y28 N11 A1
- May 20(H) CONCUR MESSAGE TAKEN UP
- May 20(H) CONCUR MESSAGE RECEIVED
- May 20(S) VERSION: SCS CSHB 280(FIN)
- May 20(S) TRANSMITTED TO (H) AS AMENDEDMajor
- May 20(S) EFFECTIVE DATE(S) SAME AS PASSAGE
- May 20(S) PASSED Y17 N3Major
- May 20(S) READ THE THIRD TIME SCS CSHB 280(FIN)Minor
- May 19(S) FINANCE at 01:30 PM SENATE FINANCE 532
- May 19(S) ADVANCED TO THIRD READING 5/20 CALMinor
- May 19(S) FIN SCS ADOPTED UC
- May 19(S) READ THE SECOND TIMEMinor
- May 19(S) RULES TO CALENDAR 5/19/2026
- May 18(S) FN2: (REV)
- May 18(S) NR: STEDMAN, KAUFMAN, CRONK, MERRICK, KIEHL
- May 18(S) DP: OLSON, HOFFMAN
- May 18(S) FIN RPT SCS 2DP 5NR SAME TITLE
- May 16(S) Moved SCS CSHB 280(FIN) Out of Committee -- Please Note Time Change --
- May 16(S) FINANCE at 09:00 AM SENATE FINANCE 532
- May 14(S) Minutes (SFIN)
- May 14(S) Heard & Held
- May 14(S) FINANCE at 09:00 AM SENATE FINANCE 532
- Apr 21(S) Minutes (SFIN)
- Apr 21(S) Heard & Held -- Please Note Time Change --
- Apr 21(S) FINANCE at 01:30 PM SENATE FINANCE 532
- Apr 10(S) FIN
- Apr 10(S) READ THE FIRST TIME - REFERRALSMinor
- Apr 8(H) VERSION: CSHB 280(FIN)
- Apr 8(H) TRANSMITTED TO (S)Passed Senate
- Apr 8(H) RECONSIDERATION NOT TAKEN UP
- Apr 1(H) JOHNSON NOTICE OF RECONSIDERATION
- Vote recorded (H) PASSED Y22 N17 E1 #2024. Result: pass.Lower
- Vote recorded (H) EFFECTIVE DATE(S) ADOPTED Y39 E1 #2024. Result: pass.Lower
- Apr 1(H) EFFECTIVE DATE(S) ADOPTED Y39 E1
- Apr 1(H) PASSED Y22 N17 E1Passed House
- Apr 1(H) READ THE THIRD TIME CSHB 280(FIN)Minor
- Mar 30(H) ADVANCED TO THIRD READING 4/1 CALENDARMinor
- Vote recorded (H) AM NO 4 FAILED Y1 N37 E2 # 2000. Result: fail.Lower
- Vote recorded (H) AM NO 2 FAILED Y18 N20 E2 # 1997. Result: fail.Lower
- Vote recorded (H) AM NO 1 FAILED Y19 N19 E2 # 1995. Result: fail.Lower
- Vote recorded (H) AM NO 3 FAILED Y4 N34 E2 # 1998. Result: fail.Lower
- Mar 30(H) AM NO 4 FAILED Y1 N37 E2Minor
- Mar 30(H) AM NO 3 FAILED Y4 N34 E2Minor
- Mar 30(H) AM NO 2 FAILED Y18 N20 E2Minor
- Mar 30(H) AM NO 1 FAILED Y19 N19 E2Minor
- Mar 30(H) FIN CS ADOPTED UC
- Mar 30(H) READ THE SECOND TIMEMinor
- Mar 30(H) RULES TO CALENDAR 3/30/2026
- Mar 27(H) FN1: (REV)
- Mar 27(H) AM: STAPP, MOORE, JOSEPHSON
- Mar 27(H) NR: BYNUM, TOMASZEWSKI
- Mar 27(H) DNP: ALLARD
- Mar 27(H) DP: JIMMIE, GALVIN, HANNAN, FOSTER, SCHRAGE
- Mar 27(H) FIN RPT CS(FIN) NEW TITLE 5DP 1DNP 2NR 3AM
- Mar 25(H) Minutes (HFIN)
- Mar 25(H) Moved CSHB 280(FIN) Out of Committee
- Mar 25(H) FINANCE at 01:30 PM ADAMS 519
- Mar 20(H) Minutes (HFIN)
- Mar 20(H) <Bill Hearing Canceled> -- Please Note Time Change --
- Mar 20(H) FINANCE at 09:00 AM ADAMS 519
- Mar 19(H) Minutes (HFIN)
- Mar 19(H) Heard & Held -- Please Note Time Change --
- Mar 19(H) FINANCE at 09:00 AM ADAMS 519
- Mar 16(H) Minutes (HFIN)
- Mar 16(H) Scheduled but Not Heard
- Mar 16(H) FINANCE at 01:30 PM ADAMS 519
- Mar 13(H) <Bill Hearing Canceled> -- Delayed to 9:15 am --
- Mar 13(H) FINANCE at 09:00 AM ADAMS 519
- Mar 10(H) Minutes (HFIN)
- Mar 10(H) Heard & Held
- Mar 10(H) FINANCE at 01:30 PM ADAMS 519
- Mar 4(H) Heard & Held
- Mar 4(H) FINANCE at 01:30 PM ADAMS 519
- Feb 26(H) <Bill Hearing Canceled>
- Feb 26(H) FINANCE at 01:30 PM ADAMS 519
- Feb 23(H) Heard & Held -- Delayed to 1:45 pm --
- Feb 23(H) FINANCE at 01:30 PM ADAMS 519
- Feb 18(H) Minutes (HFIN)
- Feb 18(H) Heard & Held
- Feb 18(H) FINANCE at 01:30 PM ADAMS 519
- Feb 18(H) -- MEETING CANCELED --
- Feb 18(H) FINANCE at 09:00 AM ADAMS 519
- Feb 13(H) Minutes (HFIN)
- Feb 13(H) Heard & Held
- Feb 13(H) FINANCE at 01:30 PM ADAMS 519
- Jan 23(H) FIN
- Jan 23(H) READ THE FIRST TIME - REFERRALSIntroduced
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