Revenue Commissioner Bryan Butcher says the Parnell administration intends to submit legislation to change Alaska’s oil tax structure.
The administration is looking at production tax credits, which could top $1 billion next fiscal year. The full benefit of that program to the state remains somewhat murky.
Gov. Sean Parnell two years ago introduced legislation to reduce petroleum taxes as a way to boost declining production. While the bill passed the House, it was locked in the Senate, where Republicans and Democrats alike were concerned the state would lose too much revenue and oil companies wouldn’t increase investment in the state.
The Alaska Department of Revenue has released its Fall Revenue Sources Book. It says unrestricted general fund revenue — money that is easier to access and spend — could be $1.6 billion lower than earlier forecast for fiscal years 2013 and 2014 due to various factors, including lower-than-expected oil prices.
Unrestricted revenue is forecast to be between $6-billion and $7-billion a year for the next nine years, assuming oil prices remain above $100 per barrel to the year 2022.
For fiscal year 2013, oil prices are estimated to average $108.67 per barrel. Prices may average $109.61 per barrel for FY 2014.
Oil provides about 90 percent of Alaska’s unrestricted revenue.
- August 31, 2015- Litter, fistfights, intoxicated loiterers, open container violations and sundry calls for emergency services are common at the pocket park in the shadow of the Gastineau Apartments.
- August 31, 2015- "I feel pretty strongly that the way to look at this topic is through science, and I just find it super disappointing that so many people chose to ignore or dismiss solid science," said one protestor.
- August 31, 2015- “I’ve arrived in Alaska a lot of ways and I’ve gotta say that was the most enjoyable," Walker said. "It was really fun, a good experience, a good opportunity for me to have some very meaningful discussions with the president.”
- August 31, 2015- President Barack Obama says submerged countries, abandoned cities and floods of refugees await the world unless it takes urgent action on climate change.