The oil tax initiative would raise the minimum tax and eliminate oil tax credits for Alaska’s largest legacy fields: Prudhoe Bay, Kuparuk and Alpine.
Another bill proposing changes to the state’s oil and gas tax credit regime was released on Wednesday. This new bill, sponsored by Les Gara (D-Anchorage), would raise minimum tax on oil companies.
Sarah Erkmann, external affairs manager for the Alaska Oil and Gas Association trade group, said the tax amounts to “punishing” oil companies.
Sen. Bill Wielechowski and Rep. Les Gara say they would like to see the tax floor raised from 4 percent to 12.5 percent and certain credits ended in order to bring in more revenue
to the state.
With some ballots yet to be counted, a referendum to repeal Gov. Sean Parnell’s signature oil tax law is trailing by nearly 7,000 votes.
A handful of leading advocates for the new oil tax regime made the case for keeping the law to a friendly audience on Wednesday.
A pair of Anchorage Democrats are calling on Gov. Sean Parnell to pass legislation serving as a guarantee that the new oil tax system will lead to more production on the North Slope.
With three months to go before the primary election, groups with a stake in the oil tax referendum are ramping up their campaigns.
Scott Jepsen with ConocoPhillips Alaska says the oil tax cut approved by lawmakers last year improved the business climate in the state.
With the deadline for filing new legislation arriving Monday, opponents of the new oil tax system have offered their own alternatives.