Just hours before Gov. Mike Dunleavy stands before Alaska lawmakers for his final State of the State address, the Alaska Legislature held a failed vote to override the governor’s veto of a corporate tax bill.

The 35-25 vote on Jan. 22 to override the governor’s veto fell 10 votes shy of the needed 45, which means Senate Bill 113 is now dead.

Critics of the bill warned that it would pass on additional costs to Alaska consumers as corporations would have needed to adjust their prices on a wide range of goods to account for the now failed tax proposal. A number of GOP lawmakers also noted that they opposed approving new tax measures without first implementing a fiscal plan to curb excessive state spending.

The bill aimed to require online companies to pay corporate income taxes in Alaska for services delivered in Alaska, and it was promoted as a way to generate additional revenue for the state coffers.

Click here to support the Alaska Watchman.