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SB113

SB 113: Tax Rules for Multistate and Digital Businesses

Last scannedSep 22, 2026, 12:32 AM

In one sentence

This law enacts the Multistate Tax Compact into Alaska state law to set rules for dividing business income among states, while also addressing taxes on highly digitized businesses.

What it does

  • Enacts the Multistate Tax Compact as part of Alaska state law.
  • Allows multistate taxpayers to choose between using standard state laws or compact rules to divide their taxable income.
  • Defines specific tax terms such as 'business income,' 'commercial domicile,' and different types of taxes like sales, use, and gross receipts taxes.
  • Sets a $100,000 sales limit for small businesses that may report using a simplified method if they only make sales in the state without owning property there.

Who it affects

  • Corporations, partnerships, firms, associations, or other business entities operating in more than one state.
  • Highly digitized businesses subject to the Alaska Net Income Tax Act.

Limits and unknowns

  • The official text provided does not state the specific date when this law officially takes effect.
  • The detailed rules specifically applying to highly digitized businesses are mentioned in the title but are not included in the provided excerpt of the bill text.

Plain language

Terms to know

Multistate Tax Compact
An agreement between states and territories that creates uniform rules for taxing businesses operating in more than one state.
Apportionment
The process of dividing a business's total income among different states based on where the work or sales happen, as defined by the Compact.
Commercial Domicile
The main place from which a taxpayer directs and manages their trade or business operations.

Official record

Sources

Source checked
Official bill pageIntroduced textCurrent bill text
Read the official summary

APPORTION TAXABLE INCOME;DIGITAL BUSINESS An Act relating to the Multistate Tax Compact; relating to apportionment of income to the state; relating to highly digitized businesses subject to the Alaska Net Income Tax Act; and providing for an effective date.

Official activity

Bill history

  1. (S) JOINT SESSION at 09:00 AM HOUSE CHAMBERText
  2. (S) RETURNED TO GOVERNOR FOR PERMANENT FILING1502
  3. (S) GOVERNOR VETO SUSTAINED Y35 N251501
  4. (S) MOTION TO OVERRIDE VETO1500
  5. (S) VETOED BY GOVERNOR 9/27/251452
  6. (S) 10:00 A.M. 9/8/25 TRANSMITTED TO GOVERNOR1450
  7. (H) Minutes (HFIN)Min
  8. (H) <Bill Hearing Canceled> -- Delayed to 2:00 pm --Text
  9. (H) FINANCE at 01:30 PM ADAMS 519Text
  10. (H) VERSION: SB 1131048
  11. (H) RETURN TO (S), TRANSMIT TO GOV NEXT1048
  12. (H) EFFECTIVE DATE(S) ADOPTED Y32 N81048
  13. (H) PASSED Y26 N141047
  14. (H) READ THE THIRD TIME SB 1131047
  15. (H) -- MEETING CANCELED --Text
  16. (H) FINANCE at 09:00 AM ADAMS 519Text
  17. (H) ADVANCED TO THIRD READING 5/7 CALENDAR1020
  18. (H) MOTION TO TABLE BILL FAILED Y11 N291020
  19. (H) READ THE SECOND TIME1020
  20. (H) RULES TO CALENDAR 5/5/20251020