Group advancing oil tax claw back measure; industry calls it short-sighted
A group led by an Anchorage attorney says it’s time the oil industry pay their “fair share” of taxes, especially at a time with the state running multi-million dollar deficits.
It’s proposing a ballot measure called the Fair Share Act and Robin Brena says the measure is aimed at the most profitable and largest fields.
According to the measure’s language, any changes would apply to fields producing more than 40,000 barrels per day or more than 400 million in total production.
“We’re simply not getting enough for our oil,” he said in an interview. “We can see what the results of that is in Alaska. If we’re going to give away our oil, then it’s going to be an Alaska our children shouldn’t have to live in.”
Brena also contends the current regime, known by it’s familiar name of SB21, features “massive tax giveaways between $1 billion and $2 billion a year and we’re just trying to get some of that back.”
Kara Moriarty, CEO of the Alaska Oil and Gas Association said the state should focus on increasing oil production while questioning the timing of tax changes as the state struggles with a longstanding recession.
“While this may seem like an easy fix to the state’s fiscal situation, the reality is, this is bad policy and it is irresponsible to put forth a major policy proposal like this where impacts have not been properly evaluated,” Moriarty said.
“Smart policy should encourage new oil production from all fields in Alaska which puts more oil in the pipeline. More oil means more revenue for the state, and that’s the best long-term approach to helping the state’s fiscal problems.”
Senate Democrats have long said an adjustment to the state’s oil taxes is one part of a solution to the state’s ongoing fiscal crisis.
Sen. Bill Wielechowski, D-Anchorage, sponsored Senate Bill 14, which would repeal the per-barrel tax credit.
Copyright 2019 KTVA. All rights reserved.
MORE KTVA NEWS: