Study Criticizes Oil Tax Structure, Legislation To Change It

An independent study criticizes Alaska’s oil tax structure but also takes issue with proposed legislation that would make changes.

The Fairbanks Daily News-Miner reports the Alaska Legislature paid over $32,000 for access to the study and five others by oil and gas consultant Pedro van Meurs.

Van Meurs allowed reporters to review the study covered by copyright.

The study says the current tax system has shortcomings such as inadequate incentives for companies to develop fields with heavy oil. Alaska increased oil production taxes as Canada and Greenland lowered theirs.

But it strongly criticizes aspects of proposed revisions, such as a system of charging different rates in old and new fields, which is included in a bill advocated by Gov. Sean Parnell.

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