Oil has been in a free fall over the previous year and has hurt the interest of states with economies closely tied to the energy industry. One of the hardest hit states has been Alaska which has traditionally used oil revenue to provide much of the states budget and spared the citizens an income tax. However, new legislation has been introduced which would introduce a tax on all income with a source in Alaska regardless of the residence of the taxpayer. This is a problem because income from trust administered in the state would be subject to the tax including payouts to a beneficiary which would necessitate filing tax returns in the state. For years Alaska had been viewed as a haven for trust due to it’s friendly laws but this change could potentially force it down a tier and cause an administration exodus to Nevada or South Dakota. Currently the bill remains in the House and has yet to be considered by the Senate.
See Todd Ganos, Embattled Oil Creates Slippery Slope For Alaskan Trusts, Forbes, December 22, 2015.
