2012 Oil Tax Debate Underway

Senate Resources Committee holds first hearing

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Story Created: Feb 10, 2012 at 8:58 PM AKDT

Story Updated: Feb 10, 2012 at 9:07 PM AKDT

JUNEAU - The 2012 oil tax debate is officially underway.

Friday the Senate Resources Committee held its first hearing on an alternative to Governor Sean Parnell’s bill, which passed the house last year.

The bill smooths out a part of the profits-based production tax, so that it does not spike above $92.50 per barrel.

Parnell’s bill would go much further, lowering the tax by nearly $2 billion every year. Supporters said that the tax, known as Alaska’s Clear and Equitable Share (ACES), should not be changed without solid information showing that it is preventing investments.

“Give me an example of a project that's on hold because of ACES,” said Senator Hollis French. “Tell me how much it would cost, how much oil it would make, and that way I can see what the barrier is. I can see the real dollars.”

“They do need to come up in front of the legislature and be as specific as they can about what a material change in taxes is going to do,” said Department of Revenue Commissioner Bryan Butcher.

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Jeff said on Monday, Feb 13 at 8:39 AM

The oil companies are sitting on huge amounts of cash. Will they take their money and go invest in Nigeria? How about Venezuela, or Mexico, or Russia, Saudi Arabia, Hell no, they will play this out and either way they will go on developing the slope because they have the infrastructure in place. They have finally been forced to maintain it properly, but they want to shift that cost of neglect back on the people of Alaska. We are the owners, they are guests. Be a good steward Mr. Chenault, get the most you can as a fiduciary of the Owners, your Constituents.

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Anonymous said on Sunday, Feb 12 at 11:28 AM

well if I had control of my oil stock and company I would not be handling it like Alaska does...they hire too many people and make too much paperwork...owner keeps 10% of profits, the 90% is then invested in LOCAL businesses no foreign investments...and a check monthly to Alaskans and a dividend yearly...that would boost the economy and stop the internal whining but what do I know...lol...

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Nicholas Naneng said on Saturday, Feb 11 at 1:04 AM

Gad prices need to be at least half of what they are now before any taxes are lowered for oil companies! Alaska Natives are part of the BILLION DOLLAR profit every year and they prey on poor people, hope our elected representatives are not BOUGHT' like the Guvnor!

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