JANUARY 6, 2016  

Report Back from Breakfast Meetings on the Budget

Dear Friends and Neighbors,

In preparation for the legislative session and difficult budget decisions I have held several meetings with neighbors this fall, most recently on the 22nd and the 29th of December to gather feedback on Governor Walker's budget proposal.  We had thoughtful conversation and our neighbors had some great questions that I think everyone might be interested in knowing the answers to so we have answered them below.

These meetings and your emails and phone calls are so helpful to me!  I always welcome additional input, questions and concerns on the budget or any other legislative matter. 

Rep. Tarr discussing the budget with neighbors.

Neighbor Questions and Answers

1.      Is it possible to structure the Permanent Fund Dividend payment based on income so individuals earning more would receive a smaller dividend?

Yes, it would be possible with legislation.  The constitution does not mandate how the Permanent Fund Dividends are distributed (source: Alaska Department of Revenue). 

2.      How much money from the Permanent Fund Dividend is paid to the federal government in taxes?

It is estimated that an average of 20% of dividends are paid to the federal government in taxes.  In 2015 $280 million will go to the IRS out of the $1.4 billion in dividend payments (source: Legislative Finance Division).

3.      How much revenue does the studded tire tax bring in annually?

The studded tire tax brings in approximately 1.5 million dollars annually.  Information on all of Alaska’s revenue sources is available online from the Department of Revenue Tax Division at this link (source: Alaska Department of Revenue).

4.      Would it be possible to exempt state residents from a sales tax?

No, it is not possible.  It is prohibited by the United States Constitution (source: Alaska Department of Revenue).

5.      Can we get a list of sales tax percentages in cities and boroughs across the state?

One hundred and eight of 155 municipalities have some form of sales tax, additionally many have property taxes.  More information is available online from the Office of the State Assessor at this link (source: Alaska Department of Commerce, Community and Economic Development).

6.      If there was an education tax would it be possible to keep the tax dollars within the community paying the tax so for example Anchorage residents would only support Anchorage schools? 

It could be done annually with an appropriation by the legislature or governor, however since an education tax is considered a shared tax the revenues cannot automatically be direct to the communities where the tax is collected (source: Alaska Department of Revenue).

7.      As part of the Affordable Care Act the state had the option to accept or decline a provision that allowed children of retirees to stay on their parents plan until age 26.  Governor Parnell decided not to accept this provision.  Would it be possible for Governor Walker to now accept this provision of the Affordable Care Act? 

I am waiting on an answer from the Governor’s office to this question and will cover it in a future newsletter.

8.      What is required to purchase a firearm in the state of Alaska? 

There are a number of requirements an individual must meet to purchase a firearm.  These are set by the federal government.  The Alaska Department of Public Safety has a list of frequently asked questions that will help an individual determine whether or not they are able to purchase a firearm. The list can be found at this link (source: Alaska Department of Public Safety). 

President Obama recently issued an executive proclamation aimed at reducing gun violence in the United States.  This will impact the requirements individuals must meet to purchase firearms.  Here is a link to an article on the issue.

Rep. Tarr volunteers at the Salvation Army and Food Bank of Alaska GIFT program during the holidays.

Upcoming Events

January 9             Anchorage Caucus meeting of Anchorage legislators from 12-3 pm.        
                             Location: Anchorage Assembly Chambers (3600 Denali St.) 

January 19          First day of the Second Regular Legislative Session of the 29th Legislature.

January 26          The UMED District Plan is on the Assembly agenda for a public hearing beginning at 5 pm. 
                             Location: Z.J. Loussac Library Assembly Chambers 3600 Denali Street Anchorage, AK 99503

Sincerely,

Representative Geran Tarr