SB113

Alaska SB113 amends the Multistate Tax Compact to include provisions for apportionment of income for highly digitized businesses.

Alaska SB113 amends the Multistate Tax Compact to include provisions for apportionment of income for highly digitized businesses. The bill defines a highly digitized business as one where 50% or more of the sales in Alaska consist of digital goods or services. For such businesses, the bill requires apportionment of income to Alaska based on a specific formula. The bill also modifies the definition of "intangible property" to include digital goods and services. The changes apply to tax years beginning on or after January 1, 2026.