Alaska's fiscal puzzle

The time is now - SIGN UP, SHOW UP AND SPEAK OUT.

How can Alaska grow its economy when we keep penalizing our most vital industries?

Please join KEEP and the growing number of Alaskans committed to creating a strong, healthy, prosperous Alaska for generations to come.

Sign our online petition – and help protect Alaska’s economic future

Add your name to this online petition to show our legislators that you support a strong Alaska economy by opposing tax increases that will result in fewer jobs and less production.

Petition:

CS HB 111 (House Resources version) significantly raises taxes on the oil industry at a time of low oil prices and little or no profitability. That is the wrong state policy to create jobs and to continue to put more oil in the pipeline. SB 21 is working and should not be changed now. A stable tax structure with the proper incentives for investment will create more prosperity for Alaskans. Solve Alaska’s fiscal problem without doing it on the back of our resource industry. We do not support the provisions of CS HB 111 that increase oil taxes or create unnecessary and unworkable bureaucracy in DOR and DNR.

Testify in person

House Finance takes public testimony from 10 a.m.-2 p.m. tomorrow, March 25. Please call or visit your local LIO office to testify, or email your legislator to provide written testimony against CS HB 111.

POINTS to consider for your testimony:

  • Solve Alaska’s fiscal problem without doing it on the back of our resource industry.
  • HB 111 raises taxes compared with the current SB 21 tax structure at a time when the oil industry is operating at losses or without any significant profit. This will create a disincentive to invest and reverse the benefits that SB 21 has brought to the North Slope in terms of more production.
  • HB 111 changes the net profit tax formula in SB 21 to significantly increase taxes at oil prices of $70 and up.
  • HB 111 changes the minimum tax rate from 4% to 5%. In the oil price range from $50-$70 barrel, this increases oil taxes between $60 million and $95 million per year.
  • HB 111 effectively changes an annual tax to a monthly tax calculation for the purpose of increasing taxes.
  • HB 111 requires DNR to preapprove capital expenditures for oil development. This is expensive, unworkable and unnecessary.

There are other problematic sections, but these four are the ones that are the biggest disincentives. For more information, take a look at AOGA’s testimony. http://www.akleg.gov/basis/get_documents.asp?session=30&docid=14444

You can also visit KEEP’s website:
http://keepalaskacompetitive.com/
 

P.O. Box 220884, Anchorage, AK 99522 | 907.569.7070 | keepalaskacompetitive.com
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