The major oil companies in Alaska testified Tuesday to the state House Resources Committee about the latest version of Governor Sean Parnell’s oil tax reform legislation. The bill passed the Senate last week. It represents a major tax break for the oil companies. The state estimates it will cost Alaska $6 billion in tax revenue over the next five years.
“To us, this single step represents significant improvement. And this change alone, if you did nothing else to ACES, that change alone would significantly improve Alaska’s global competitiveness,” Seckers said.
But Seckers went on to say the base tax rate under the new tax plan – 35 percent – is too high. Damian Bilboa, head of finance for BP Alaska, agreed the tax breaks under the new plan don’t go far enough.
“While it is a step forward in making Alaska more attractive to investment. Alaska’s geographic, technical and cost challenges are such that Alaska may not want to be satisfied with settling on the upper end of average on the competitive scale,” Bilboa said.
Democrats who fought the new tax plan in the Senate say it gives away billions of dollars to the oil companies, with no guarantee they will invest more in oil production in Alaska to make up for the loss.
Committee co-chair Eric Feige hopes to advance the bill sometime next week. It would then go to the House Finance Committee.
See Original Story
- The Juneau Access Project envisions 50 more miles of road up Lynn Canal to a ferry terminal closer to the road system. It has divided the Juneau community for decades and faces significant opposition from other southeast cities including Haines and Skagway. Alaska Gov. Bill Walker pulled the plug on the $574 million project last month.
- The Juneau Assembly heard more than 90 minutes of testimony from dozens of residents including merchants, social workers and homeless people themselves who all agreed on one thing: Juneau has a serious homeless problem. But speakers had radically different viewpoints.
- President Trump indicated that potential deals between the pipeline companies and the federal government would be renegotiated, with the goal of allowing construction to move forward.
- The Alaska Mental Health Trust Land Office will not pursue timber sales at controversial sites in Petersburg and Ketchikan – at least for now.