SCS CSHCR 39(RES): Requesting a study and report on the competitiveness of the state's oil and gas tax and royalty structure.
00 SENATE CS FOR CS FOR HOUSE CONCURRENT RESOLUTION NO. 39(RES) 01 Requesting a study and report on the competitiveness of the state's oil and gas tax and 02 royalty structure. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS the oil and gas industry operates in a diverse, competitive, and global 05 market; and 06 WHEREAS the state receives more than 70 percent of its unrestricted general fund 07 revenue from taxes and royalties on the production of its oil and gas resources; and 08 WHEREAS the legislature has a constitutional obligation to develop the state's 09 resources for the maximum benefit of state residents; and 10 WHEREAS maximizing oil and gas production and the benefits from oil and gas 11 production is in the best interests of the state; and 12 WHEREAS the tax and royalty structures in place in the state's oil and gas sector 13 affect the competitive ability of the state to maintain and attract new capital investments; and 14 WHEREAS although a stable and competitive tax structure is important to maintain 15 and attract new capital investments, it is appropriate to reevaluate periodically the state's 16 system of oil and gas taxes as the scope and cost of oil and gas exploration and production
01 operations change over time; 02 BE IT RESOLVED that the Alaska State Legislature requests the Legislative Budget 03 and Audit Committee to contract with consultants who have expertise in domestic and global 04 oil and gas fiscal structures to perform a comprehensive study of the state's oil and gas tax and 05 royalty structure and prepare a report on the results of the study; and be it 06 FURTHER RESOLVED that the Legislative Budget and Audit Committee shall 07 issue a request for proposals by June 15, 2004, to select consultants to perform the study and 08 contract with the consultants by July 30, 2004, or as soon after that date as is practicable; and 09 be it 10 FURTHER RESOLVED that the study to be performed by the consultants must 11 identify alternative state revenue and industry incentive structures that, after considering the 12 probable range of world oil and gas prices, would maximize the state's oil and gas revenue 13 over the long term, promote development of known oil and gas resources, and encourage 14 additional exploration and development; and be it 15 FURTHER RESOLVED that the study to be performed by the consultants must 16 analyze the consequences of existing and alternative oil and gas tax structures on the state's 17 competitiveness in maintaining existing oil and gas industry investment and attracting new oil 18 and gas industry investment; and be it 19 FURTHER RESOLVED that the consultants shall document the results of the study 20 in a final report and provide the report to the Legislative Budget and Audit Committee not 21 later than November 15, 2004; and be it 22 FURTHER RESOLVED that the Legislative Budget and Audit Committee shall 23 submit the report provided by the consultants to the Twenty-Third Alaska State Legislature 24 not later than December 15, 2004, by submitting it to the Alaska Legislative Council.