Governor Signs Bill Ending Cashable Tax Subsidies
HB 111 Also Creates Working Group to Review Underlying Tax Code
Juneau – Today, Alaska Governor Bill Walker signed House Bill 111 into law, ending cashable subsidies on the North Slope, and making modest adjustments to Alaska’s oil and gas tax code. HB 111 was sponsored by the House Resources Committee, Co-Chaired by Representative Geran Tarr(D-Anchorage) and Representative Andy Josephson (D-Anchorage).
“While there were significant disagreements over major components of this legislation, I am grateful to my Senate colleagues for coming to the table and finding a compromise that an overwhelming majority of both chambers agree is an improvement over our existing tax code,” said Rep. Tarr, who Chaired the HB 111 Conference Committee. “Going forward, my hope is that the bipartisan Working Group mandated by this bill will draft a policy to accomplish three things: a policy that works at all prices, a policy that works along all time horizons, and most importantly, a policy that ensures Alaskans receive a fair share for our resources. The industry wants stability that will be good for jobs and investment, and the legislature needs to stop revisiting oil and gas taxes every year to address other priorities like reducing health care costs, improving education outcomes, and diversifying our economy.”
A bipartisan, bicameral working group was established and tasked by HB 111 with reviewing the state’s oil and gas taxes and delivering recommended changes for consideration during the legislative session beginning in January 2018.
“This bill was an important step towards a sustainable and durable tax regime for oil and gas development in Alaska,” said Rep. Josephson. “I look forward to engaging with the Senate and the additional consultants they requested assist the working group consider the underlying tax code. Our current system was never modeled or designed for the low price environment that appears to be the new normal, yet our production tax revenue is needed now more than ever as an essential piece of a comprehensive fiscal plan.”