5.2.26
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. |
|