Alaska Sales Tax on the Table After Corporate Tax Overhaul Fails

A statewide sales tax is one option on the table as Alaska lawmakers examine new revenue possibilities for fiscal year 2027 after they failed to override Gov. Mike Dunleavy’s (R) veto of a bill overhauling the corporate tax code.

Dunleavy said earlier this week that he favors a temporary, seasonal statewide sales tax to stabilize the state’s finances. Alaska currently has no state sales tax, but it permits cities and boroughs to impose sales taxes to fund local operations.

A formal proposal will be presented next week, Dunleavy’s communications director Jeff Turner said. The governor didn’t discuss the idea further ...