New Bill Proposes Change in Oil Tax Calculation

Dave Donaldson, APRN – Juneau

One of the major goals of the Parnell Administration is to end the year with a plan that will increase oil production on the North Slope.  The governor told several audiences during the election campaign season – and since – that the best way to deal with the state’s financial future is to give oil producers and explorers enough incentives to encourage them to invest more – to turn around the decline in the amount of oil coming through the TransAlaska Pipeline.  So far, he’s been looking at ways to change the current tax regime that came about in 2007.   While the focus has been on more incentives, one of the bills already filed for this year’s legislature takes another approach – change the way the tax is calculated.

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