Oil tax bill passes before Alaska Legislature's adjournment
By Alex Murray
The House version of Senate Bill 21 passed 27-12 Sunday morning, with the Senate concurring 12-8 later that day. Under the legislation, Alaska's Clear and Equitable Share (ACES), a progressive system advanced by former Gov. Sarah Palin (R), would give way to a new system with a base tax rate of 35 percent of net profits on all oil production in the state. Even though the base rate will increase from 25 percent, producers are expected to have their taxes lowered by $3.5 billion or more over the next five years due to the elimination of the progressive component. After tax credits and allowances, officials say producers could be effectively taxed as low as 14 percent.
Parnell and oil producers say that the ACES system deterred development in the state, which is heavily dependent on the oil industry. Democrats, upset over the loss of revenue, say they will support a push by former state representative Ray Metcalfe to get the issue on the 2014 primary ballot. The Division of Elections says that out of the three public votes that made it to the ballot in Alaska's history, two passed.
Alaska is one of 24 Republican state government trifectas.
- Alaska Legislature
- Alaska House of Representatives
- Alaska State Senate
- Taxes on the ballot
- Senate Finance Committee introduces rewrite of oil tax bill, from March 13
- Alaska Senate passes oil tax revamp, from March 21
- The Associated Press, "Alaska House passes oil tax overhaul," April 13, 2013
- The New York Times, "To Reinvigorate Production, Alaska Grants a Tax Break to Oil Companies," April 15, 2013
- Alaska Public Media, "Legislature Approves Tax Cut for Oil Companies," April 14, 2013
- The Associated Press, "Dems say they'll support push for oil tax cut vote," April 15, 2013