JUNEAU, Alaska (AP) _ A Sitka senator proposed adjustments to Alaska's oil tax system Friday that he said are aimed at making it fairer to the state.
Republican Sen. Bert Stedman says his bill, SB192, is aimed at the already-producing legacy fields, long the mainstay of Alaska's oil industry.
The bill would keep the base tax rate at 35 percent but would adjust the sliding scale, per-barrel credit for those fields. Beginning in 2015, the highest credit would be $4 a barrel when the average gross value at the point of production was less than $80 a barrel. It would decrease to zero when the average gross value at the point of production was at least $150 a barrel. The highest credit on the sliding scale under the current system starts at $8 a barrel.
Stedman's bill also would raise the minimum tax.
The bill does not get into other aspects of the current tax structure, such as credits provided for new oil.
Stedman says he worries about the effect on the treasury under the new tax structure approved by lawmakers last year. He says it gives up too much money. But he says Alaska was at a competitive disadvantage with the old system, which took more when prices were higher.
Voters in August will decide whether to keep the tax structure or repeal it.