# is it true that people in alaska get paid to live there? **URL:** \ **Category:** Factual Questions\ **Created:** [June 6, 2004, 5:51am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922 "2004-06-06T05:51:35Z")\ **Posts on this page:** 17\ **Page:** 1
**Author:** ![vinniepaz](https://avatars.discourse-cdn.com/v4/letter/v/b4bc9f/32.png) [@vinniepaz](https://boards.straightdope.com/u/vinniepaz)\ **Post date:** [June 6, 2004, 5:51am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/1 "2004-06-06T05:51:35Z")
someone told me that they did. i assume if they do it has something to do with oil. anyone know? ---
**Author:** ![js\_africanus](https://avatars.discourse-cdn.com/v4/letter/j/87869e/32.png) [@js\_africanus](https://boards.straightdope.com/u/js_africanus)\ **Post date:** [June 6, 2004, 6:48am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/2 "2004-06-06T06:48:47Z")
Yes, the state distributes oil revenues to residents/citizens. You have to live there for a certain length of time and, IIRC, that includes living through one or two winters. I once lived with a guy who was complaining that his yearly check was only $1,200, or something like that. ---
**Author:** ![octothorpe](https://avatars.discourse-cdn.com/v4/letter/o/b77776/32.png) [@octothorpe](https://boards.straightdope.com/u/octothorpe)\ **Post date:** [June 6, 2004, 7:40am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/3 "2004-06-06T07:40:30Z")
**vinniepaz** : To be a bit more specific, residents are not paid to live there _per se_, rather the annual check the residents receive (that’s man, woman and child) is a dividend of the Alaska Permanent Fund. The Alaska Permanent Fund was set up when the state allowed big oil to harvest on the north slope (Kaparuk & Prudoe Bay). Basically, the state mandated that a certain percentage of each barrel of oil recovered by the oil companies be paid to the state and these monies were divied, if i remember correctly, 50% invested wherever, 25% invested in the state, and 25% given to the residents as a dividend. While i was living there the dividend was about $460, but that has been a few years ago. The story goes that big oil approached the state claiming an abundance of jobs and a strong boost to the economy, but would require certain ahhh, _considerations_ in order to make the exploration and subsequent development of what is now the North Slope Burrough feasible. Fortunately, the powers that be in Alaska seemed to have learned the lessen suffered by Minnesota and the Iron Range and basically told the oil companies that they had it ass-backwards; the oil companies were to be the ones to pay for being allowed to make a shit-pot full of money off the reserves on the slope. Of course, the oil companies balked, but in a rare show of intelligence, the state stood by their guns stating, in essence, “If you don’t want to pay, no problem, it will still be there when you’re ready to pony up.” I guess they found the few extra dollars they needed… Now the funny part of all this is that, not too many years prior, the Feds deeded the slope to the state and, thus, do not see a penny of these funds. You don’t suppose that there are a whole mess of federal government types that wish they’d have had the sense to play hardball with big oil do you? # ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [June 6, 2004, 11:51am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/4 "2004-06-06T11:51:32Z")
Here is a link to the [Alaska Permanent Fund website](https://www.pfd.state.ak.us/YEARAMOU.HTM), which shows the amounts paid to residents since the fund was established. The highest dividend was $1963.86 in the year 2000. The fluctuations generally track the stock market, where the $26 billion fund principal is invested; the formula that determines the dividend averages the growth of the fund over the past five years. ---
**Author:** ![Logitech](https://avatars.discourse-cdn.com/v4/letter/l/e19b73/32.png) [@Logitech](https://boards.straightdope.com/u/Logitech)\ **Post date:** [June 6, 2004, 5:52pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/5 "2004-06-06T17:52:13Z")
This is slightly OT, but in Canada people that live in the territories (Basically the same region of the world as Alaska) get a Tax break (on their income tax) in addition to whatever other benefits they are entitled to. But I’m not sure if it is the same in the US. ---
**Author:** ![Wikkit](https://avatars.discourse-cdn.com/v4/letter/w/c0e974/32.png) [@Wikkit](https://boards.straightdope.com/u/Wikkit)\ **Post date:** [June 6, 2004, 10:20pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/6 "2004-06-06T22:20:18Z")
> [@Logitech](#): > > This is slightly OT, but in Canada people that live in the territories (Basically the same region of the world as Alaska) get a Tax break (on their income tax) in addition to whatever other benefits they are entitled to. But I’m not sure if it is the same in the US. Alaskans pay no state income or sales tax. The PFD is essentially anti-tax. ---
**Author:** ![Cunctator](https://avatars.discourse-cdn.com/v4/letter/c/43a26b/32.png) [@Cunctator](https://boards.straightdope.com/u/Cunctator)\ **Post date:** [June 6, 2004, 11:22pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/7 "2004-06-06T23:22:07Z")
> [@Logitech](#): > > This is slightly OT, but in Canada people that live in the territories (Basically the same region of the world as Alaska) get a Tax break (on their income tax) in addition to whatever other benefits they are entitled to. But I’m not sure if it is the same in the US. Tax rebates are also available in Australia to those who live in geographically isolated areas. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [June 7, 2004, 3:13am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/8 "2004-06-07T03:13:31Z")
> [@Wikkit](#): > > Alaskans pay no state income or sales tax. The PFD is essentially anti-tax. Slight nitpick: Alaskans pay no _state_ sales tax. Many communities have a local sales tax. This all creates a giant welfare state in which everyone feels they are entitled to a handout every year and shouldn’t have to pay for basic services, etc. Property taxes support local services, along with fees for licenses, etc. We have billions in the reserve account and can’t pave our roads or educate our children properly because most voters want the money to be given to them directly and any politician who suggests touching the money can be assured of being soundly defeated in the next election. Consequently, we have a budget crisis in Alaska, which is just patently ridiculous. ---
**Author:** ![Wikkit](https://avatars.discourse-cdn.com/v4/letter/w/c0e974/32.png) [@Wikkit](https://boards.straightdope.com/u/Wikkit)\ **Post date:** [June 7, 2004, 4:04am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/9 "2004-06-07T04:04:14Z")
> [@Chefguy](#): > > Slight nitpick: Alaskans pay no _state_ sales tax. Yes, I meant no state (income or sales) tax, I should have phrased it better. It is an odd situation, but it’s an odd state. 🙂 ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [June 7, 2004, 11:00am UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/10 "2004-06-07T11:00:24Z")
> [@Chefguy](#): > > We have billions in the reserve account and can’t pave our roads or educate our children properly because most voters want the money to be given to them directly and any politician who suggests touching the money can be assured of being soundly defeated in the next election. Now you are getting into Great Debates territory. If you want to discuss whether politicians should be allowed to spend a trust fund created for the citizens of Alaska, start a thread in GD; I’ll be all over that puppy. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [June 7, 2004, 12:13pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/11 "2004-06-07T12:13:10Z")
> [@Fear Itself](#): > > Now you are getting into Great Debates territory. If you want to discuss whether politicians should be allowed to spend a trust fund created for the citizens of Alaska, start a thread in GD; I’ll be all over that puppy. When were you appointed to **Mod** status? ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [June 7, 2004, 12:18pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/12 "2004-06-07T12:18:39Z")
> [@Chefguy](#): > > When were you appointed to **Mod** status? All I’m saying is that I am willing to debate this issue with you, in the proper forum. I have plenty to rebut your assertions with, but I have respect for the forum rules. And that is not limited to moderators. ---
**Author:** ![bibliophage](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bibliophage/32/7615_2.png) [@bibliophage](https://boards.straightdope.com/u/bibliophage)\ **Post date:** [June 7, 2004, 12:45pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/13 "2004-06-07T12:45:55Z")
All right, you two. Go play elsewhere. This thread is for facts, not debating or bickering. bibliophage moderator GQ ---
**Author:** ![Mister\_Rik](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mister_rik/32/491_2.png) [@Mister\_Rik](https://boards.straightdope.com/u/Mister_Rik)\ **Post date:** [June 7, 2004, 4:53pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/14 "2004-06-07T16:53:40Z")
Somewhat related: during my sole semester at Washington State University, I lived on the same dorm floor with a student who was from Alaska. He said that the state was paying for his entire college education. Apparently, because Alaska has no universities, the state pays for people to attend universities out-of-state, in exchange for those people returning to Alaska after graduation and using those college degrees _in_ Alaska for a certain number of years. Does Alaska still do this? ---
**Author:** ![cmkeller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmkeller/32/118_2.png) [@cmkeller](https://boards.straightdope.com/u/cmkeller)\ **Post date:** [June 7, 2004, 5:53pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/15 "2004-06-07T17:53:37Z")
I don’t know specifically what your dorm-mate meant, but there definitely are universities in Alaska. Like, for example, [University of Alaska](http://www.alaska.edu/) or [Alaska Pacific University](http://www.alaskapacific.edu/) ---
**Author:** ![douglips](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@douglips](https://boards.straightdope.com/u/douglips)\ **Post date:** [June 7, 2004, 7:03pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/16 "2004-06-07T19:03:46Z")
> [@Phase42](#): > > Somewhat related: during my sole semester at Washington State University, I lived on the same dorm floor with a student who was from Alaska. He said that the state was paying for his entire college education. Apparently, because Alaska has no universities, the state pays for people to attend universities out-of-state, in exchange for those people returning to Alaska after graduation and using those college degrees _in_ Alaska for a certain number of years. > > Does Alaska still do this? Wasn’t that the premise of Northern Exposure (except the student in question was originally from New York - the Alaskans paid for his MD and he had to go to Cicily AK to work off his debt…) ---
**Author:** ![Daizy](https://avatars.discourse-cdn.com/v4/letter/d/46a35a/32.png) [@Daizy](https://boards.straightdope.com/u/Daizy)\ **Post date:** [June 7, 2004, 7:31pm UTC](https://boards.straightdope.com/t/is-it-true-that-people-in-alaska-get-paid-to-live-there/248922/17 "2004-06-07T19:31:18Z")
> [@Logitech](#): > > This is slightly OT, but in Canada people that live in the territories (Basically the same region of the world as Alaska) get a Tax break (on their income tax) in addition to whatever other benefits they are entitled to. But I’m not sure if it is the same in the US. Perhaps it’s the Northern Living Allowance that you’re thinking of? See [here.](http://www.hydro.mb.ca/MHHumanResources/550-599/g560/g560.htm) Those who work in the Territories, but live outside them are also charged a 1% tax for the _priviledge_ of working there. Non-tax deductible. See [here.](http://www.pwgsc.gc.ca/compensation/pao/pao-5-3-e.html)