House Approves Oil and Gas Property Tax Change (HB379/Nageak)
Nageak’s HB379 gives boroughs flexibility in how to use revenues
Monday, April 14, 2014, Juneau, Alaska – The Alaska House of Representatives today passed a bill that would allow a borough or municipality the opportunity to change how it uses revenues from property taxes collected on oil and gas infrastructure. House Bill 379, by the House Community and Regional Affairs Committee, would leave the current 20 mill rate in place, but change the cap calculation from 225-percent to 375-percent in some instances.
C&RA Co-Chair Rep. Ben Nageak said the change would allow the North Slope Borough the opportunity to use revenues for operating costs instead of debt service. “Over the course of the last 34 years, the North Slope Borough has taxed below the state cap, by 1.5 mills. That difference has amounted to about one billion dollars to the State of Alaska. We did so to be a good partner. We provide a whole range of services ourselves, saving the state money while working in conjunction with state agencies. House Bill 379 will allow the Borough to use revenues for operating costs and existing infrastructure, instead of debt service, which has gone down substantially.”
HB 379, which passed unanimously, now moves to the Alaska Senate for consideration.
Posted: April 14, 2014