Changing Oil Tax Top Priority of Legislative Session

Dave Donaldson, APRN – Juneau

The governor and many legislators this year have set changing the state’s tax on oil as the top goal for the session. As work gets underway, the focus is on two bills that, basically, do the same thing – they lower the surtax on oil as prices climb. Estimates by the Parnell administration show that change would cost the state an average of about a Billion dollars a year. However, there’s also legislative interest in re-imposing what’s called the “standard deduction,”  part of the 2007 oil tax that temporarily provided a cap on some deductions the oil industry can now take.

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