The Alaska Citizen's Guide to the Budget

5.2.25 New Revenues to Fill the Fiscal Gap—Non-Petroleum
Corporation Income Tax

The state collects about $50 million each year from the Corporate Income Tax (excluding taxes collected from the petroleum industry that are subject to the special Corporate Income Tax on Petroleum). Most of the revenues come from trade, services, finance, and utility businesses with little contributed by airlines, construction, fish, manufacturing, mining, or transportation. Businesses that are not incorporated, such as most fish harvestors, are not subject to this tax.

Corporate Tax Liability by Sector (1)

 
FY 2001
 FY 2000
 FY 1999
Business Activity
%
Tax Liability
%
Tax Liability
%
Tax Liability
Airlines 4% 1,829,425 5% 2,705,322 2% 1,157,714
Construction 3% 1,357,780 3% 1,673,615 3% 1,638,376
Finance 9% 3,690,786 19% 10,636,659 20% 10,161,632
Fish (2) 7% 3,039,414 4% 1,966,142 3% 1,359,905
Manufacturing (3) 4% 1,755,109 3% 1,782,218 6% 3,081,797
Mining (4) 1% 285,815 0% 75,900 1% 398,435
Real Estate 4% 1,525,122 3% 1,427,584 3% 1,745,832
Retail 11% 4,601,219 11% 6,067,087 10% 5,040,997
Services (5) 21% 8,704,506 17% 9,481,634 21% 11,118,228
Transportation (6) 7% 2,828,536 6% 3,120,394 7% 3,669,637
Utility & Comm. 18% 7,373,389 17% 9,172,989 12% 6,241,187
Wholesale 10% 4,359,367 10% 5,670,993 9% 4,571,731
Other Sectors (7) 1% 568,676 2% 1,164,398 3% 1,310,741
Total 100% $41,919,145 100% $54,944,935 100% $51,496,211
             
(1)Reporting a tax liability on an original corporate income tax return. Liabilities may differ from amounts remitted by the taxpayer during the fiscal year due to timing differences resulting from estimated tax payments, credits and final payment of taxes. Figures are based upon information provided on tax returns as interpreted by DOR. Prior years have been updated for consistency purposes.
(2) Includes fish processors that are usually classified under manufacturing.
(3) Fish processing and wood products manufacturing included under fisheries and forestry sectors.
(4) Does not include oil and gas extraction.
(5) Includes oil and gas services.
(6) Airline transportation is included in its own sector above.
(7) Forestry and insurance sectors combined for confidentiality reasons.
Note: In FY 1997 and FY 1999, total general corporation income tax liabilities were updated and, consequently, do not match the liabilities shown in our annual reports.

Source: Alaska Department of Revenue.

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Page updated January 13, 2003

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