Governor Dunleavy Vetoes Senate Bill 54 and Senate Bill 113
Last week, the Governor vetoed two bills: Senate Bill 54 and Senate Bill 113.
Senate Bill 54, sponsored by my office, would extend the statutory authorization for the Board of Architects, Engineers, and Land Surveyors (AELS Board), add Registered Interior Designers to the board’s jurisdiction, and make statutory changes requested by the AELS Board. This bill would allow the AELS Board to continue the important work of regulating design professionals in Alaska and add a qualified interior designer to the board. It is an important measure for streamlining regulation and ensuring that Alaska is open and ready for business. SB 54 passed the Senate 18-2 and the House 30-10.
Senate Bill 113 is a common-sense measure to ensure that online businesses that sell to Alaskans pay their fair share to support Alaska. Many of these companies doing online business in Alaska pay minimal or no corporate income tax due to our outdated tax laws. Under the current law, companies base their taxable income on the sales conducted in Alaska and the percentage of their property and payroll located in the state. But in today’s economy, many companies with no property or payroll in Alaska have a significant presence in Alaska through substantial in-state sales. It is not a new tax. SB 113 ensures that companies doing business in Alaska pay their fair share of Alaska’s corporate income tax.
SB 113 is estimated to raise between $25 million and $65 million each year. Some of the revenue would go directly towards education funding, including career and technical education and reading proficiency grants intended to support the Alaska Reads Act.
With a total of nine vetoed bills out of 33 that the Legislature passed, the Governor has now vetoed over 25% of all passed legislation, the highest proportion in our state's history.
As set forth in Article II, Section 16 of the Alaska Constitution, the Legislature may reconsider both SB 113 and SB 54 and decide whether to override the Governor's vetoes when we return for our next legislative session in January 2026.
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