2012 Oil Tax Debate Underway
Senate Resources Committee holds first hearing
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.