Parnell’s Oil Tax Bill Tabled for Remaining Session
It now appears certain that a bill to lower oil production taxes will not see the light of day, at least for the remainder of this session.
The Senate Resources Committee tabled the tax changes until next year, but that hasn't stopped political jousting over the bill.
Today Senator Bill Wielechowski (D-Anchorage) claimed an analysis, done by his staffers, shows the state will lose billions of dollars in revenue - even with billions in investment by producers - if the state passes changes to the oil production tax known as ACES.
Wielechowski was responding to recent statements made by ConocoPhillips Alaska CEO Jim Mulva. He says if the tax changes pass his company might invest as much as five billion dollars in Alaska before 2020.
Wielechowski says the losses would be the result of Conoco gaining other credits for producing oil from older wells.
Department of Revenue Commissioner Bryan Butcher did not contradict Sen. Wielechowski’s claims about lost revenue.
However, the Commissioner did say that the analysis does not include potential revenue from many independent oil producers who may come to the state enticed by the proposed tax cuts.
Gov. Parnell has warned lawmakers he would veto parts of the state capital budget if the tax changes fell through.
His office declined to detail any projects identified by the Governor as one that might be eliminated.
The bill has already passed the State House and remains alive in the next Legislative session beginning January 2012.
However, the debate is not over this year - as BP announced it’s Alaska president, John Minge will address the tax debate at a press conference tomorrow.