oil taxes

The governor's budget gets about half a billion dollars from the oil and gas industry, proposing deep cuts to the state's system of oil and gas tax credits.

The state paid out more than half a billion dollars in refundable tax credits this past year -- and gave up another half a billion in credits deducted from companies' tax liabilities. Download Audio

With the state facing a deficit next year of more than $3 billion, lawmakers face the always vexing question of what can be cut. One option on the table is reducing tax credits for oil and gas companies.Download Audio

Alaska’s budget is based on oil taxes, and the Legislature changed the oil tax structure last year to allow the industry more income when prices are high. In August Alaska’s voters are being asked whether they want to repeal that change. APRN: Tuesday, June 1, at 10:00 a.m.Download Audio

Since Buccaneer Energy arrived on the scene in Alaska in the summer of 2011, it has seen a few victories and a host of unexpected problems.

At today’s prices, Alaska’s oil tax system can be compared to those of Norway, Russia, and Venezuela in terms of how much money it puts in state coffers. A plan introduced by the Senate finance committee today would change that. It’s a new version of the oil tax plan Governor Parnell introduced earlier this session.

Gov. Sean Parnell's oil tax proposal advanced out of the Senate resources committee on Wednesday, with a few changes. Instead of setting the base tax rate at 25 percent, it bumps it to 35 percent.

The Parnell administration is poised to introduce oil tax reform legislation again. Previous attempts have failed to gain enough support to pass the state legislature. The new bill was previewed for the Fairbanks Chamber of Commerce Tuesday. It incorporates some ideas raised in recent year’s discussions.

In the legislative session that begins in January, members of the House and Senate will face several high priority issues. But at the top will be whether to change the state’s oil tax structure in hopes of encouraging more new production.

Among the issues legislators anticipate dealing with during next year’s session is a revived effort by the Parnell Administration to lower the state’s taxes on oil production.