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.
- The state is granting nearly $300,000 to improve water quality in some of Alaska's most damaged watersheds, including Juneau's orange-tinted Duck Creek.
- More than a third of all the penalties imposed since 1976 were logged last year.
- "You know, we're not talking about some smoky, old wood stove here. We’re talking about high-tech equipment," said Daniel Parrent, a program manager at the U.S. Forest Service.
- "Did you think that ganging together seven different taxes would make it more likely or less likely that any would pass?” asked Eagle River Republican Rep. Dan Saddler.