Complaints Arise Over Implementing New Oil Tax Law

The new law that will change the way Alaska taxes the oil industry is drawing complaints that it's confusing and too demanding.

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by Associated Press

ANCHORAGE- The new law that will change the way Alaska taxes the oil industry is drawing complaints that it's confusing and too demanding.
Much attention is being focused on what is "new oil."
New production will give oil producers the biggest tax breaks. The provision was meant as an incentive to invest in prospects that would not otherwise have been developed.
State officials say that may mean the oil industry will have to install meters on individual wells to show that new oil is being produced.
Industry officials say that sort of metering is impractical.
Critics of the new law passed by the Republican-controlled legislature say that a loose standard would give tax breaks in oil fields that were going to be produced anyway.