Senate Finance Unveils Oil Tax Rewrite

A key Senate panel has unveiled its version of the governor's oil tax overhaul, including a time limit for a tax break on new oil.

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by Associated Press

Story Created: Mar 12, 2013 at 11:12 AM AKDT

Story Updated: Mar 12, 2013 at 11:12 AM AKDT

JUNEAU - A key Senate panel has unveiled its version of the governor's oil tax overhaul, including a time limit for a tax break on new oil.

The Senate Finance version builds off Gov. Sean Parnell's bill and the Senate Resources Committee's rewrite of it.

Alaska's current tax structure features a 25 percent base tax rate. It also has a progressive surcharge credited with helping fatten state coffers. Companies say the surcharge eats too deeply into profits when oil prices are high.

The plan released Tuesday, like the others, would scrap progressivity.

But it also would raise the base tax rate to 30 percent and provide a $5-per-barrel credit for oil produced. It also would provide a 10-year, 20 percent tax break, known as a gross revenue exclusion, for new oil.

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