During today’s episode of The Empty Office Podcast, Senator Tobin and Mike Mason look back on the first 60 days of the Legislative Session in Juneau and look forward to the next 60 days. Today’s episode was recorded on day 60 of the legislative session, which is constitutionally limited to 120 days.

Topics discussed during today’s episode include legislation to increase education funding in Alaska and the importance of public input in the legislative process. Senator Tobin also discusses the legislation she is sponsoring this session, including:

* Senate Bill 93 – Early Education Programs

* Senate Bill 60 – Establish ME/Chronic Fatigue Syndrome Day

* Senate Bill 61 – Electronic Device Recycling

* Senate Bill 62 – Board of Parole: Membership, Report

* Senate Joint Resolution 6 – Washington, D.C. Statehood

During today’s episode, Senator Tobin also discusses the renewed attention in the Alaska State Legislature on revenue-generating legislation, including a bill to modernize Alaska’s corporate income tax law to include online sales from outside corporations. Below are details of some of the revenue bills under consideration in the Alaska State Senate.

Senate Bill 113 seeks to modernize Alaska’s corporate income tax law to include online sales from outside corporations, just as if they were brick-and-mortar businesses.

* Alaska’s corporate income tax apportionment laws do not sufficiently address online sales.

* The legislation is based on the concept of market-based sourcing, which is used in 36 states.

* Market-based sourcing taxes the business at the location of the customer, not the business.

* If approved, online businesses benefiting from Alaska’s economy would pay corporate income taxes, just like brick-and-mortar companies operating in the state.

* It is estimated the bill could generate between $25 million to $65 million a year.

“This legislation will not raise taxes for Alaskans or local businesses. It simply ensures that major out-of-state corporations benefiting from our economy contribute just as local businesses do. This establishes a level playing field for all entities operating in Alaska." – Senator Bill Wielechowski

Senate Bill 112 reduces Alaska’s sliding-scale per-barrel oil production tax credits.

* These tax credits have led to billions of dollars in lost revenue for the state of Alaska.

* SB 112 would reduce the maximum tax credits paid to oil companies from $8 down to $5 per barrel.

* The bill could generate $400 million in new revenue per year.

* In 2021, the Department of Revenue testified to the Joint Fiscal Policy Working Group that cutting the oil tax credits from $8 to $5 would have minimal impact on oil company investments in Alaska.

"For years, the size of the per-barrel credit system has cost the state billions of dollars without delivering tangible benefits. This simple change ensures that tax credits are granted with accountability and a clear return for Alaskans while continuing to support investment in our oil fields." – Senator Bill Wielechowski

SB 92 Corporate Income Tax – Oil & Gas Entities

* The bill restructures the state corporate income tax so that it is applied equally to all companies in Alaska, including S corporations.

* The change could generate as much as $100-150 million in revenue per year.

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