(NEWSER) – It currently pays to live in Alaska—literally. In addition to the lack of a state income tax, Alaskans have since 1982 received an annual dividend check paid from the state's oil wealth savings account.
But the glory days may be over. Gov. Bill Walker this month proposed some big changes in the face of low oil prices. Among them: a state income tax and a change to how the dividend is calculated that would trim it way down—from a record $2,072 this year to about half that in 2016.
The New York Times explains that every barrel of oil that flows though the Trans-Alaska Pipeline results in a royalty and a production tax being paid to the state. Interestingly, the state has the distinction of being the only state to repeal an existing income tax, which it did in 1980 after oil began flowing through the pipeline.
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