SB 242: "An Act relating to lease expenditures that may be deducted for purposes of the production tax on oil and gas; relating to the retroactivity provisions of changes to the production tax on oil and gas enacted in ch. 1, SSSLA 2007; and providing for an effective date."
00 SENATE BILL NO. 242 01 "An Act relating to lease expenditures that may be deducted for purposes of the 02 production tax on oil and gas; relating to the retroactivity provisions of changes to the 03 production tax on oil and gas enacted in ch. 1, SSSLA 2007; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.55.165(a) is amended to read: 07 (a) For [EXCEPT AS PROVIDED IN (k) AND (l) OF THIS SECTION, 08 FOR] purposes of this chapter, a producer's lease expenditures for a calendar year are 09 (1) costs, other than items listed in (e) of this section, that are 10 (A) incurred by the producer during the calendar year after 11 March 31, 2006, to explore for, develop, or produce oil or gas deposits located 12 within the producer's leases or properties in the state or, in the case of land in 13 which the producer does not own an operating right, operating interest, or 14 working interest, to explore for oil or gas deposits within other land in the
01 state; and 02 (B) allowed by the department by regulation, based on the 03 department's determination that the costs satisfy the following three 04 requirements: 05 (i) the costs must be incurred upstream of the point of 06 production of oil and gas; 07 (ii) the costs must be ordinary and necessary costs of 08 exploring for, developing, or producing, as applicable, oil or gas 09 deposits; and 10 (iii) the costs must be direct costs of exploring for, 11 developing, or producing, as applicable, oil or gas deposits; and 12 (2) a reasonable allowance for that calendar year, as determined under 13 regulations adopted by the department, for overhead expenses that are directly related 14 to exploring for, developing, or producing, as applicable, the oil or gas deposits. 15 * Sec. 2. The uncodified law of the State of Alaska enacted in sec. 1(d), ch. 1, SSSLA 2007, 16 is amended to read: 17 (d) It is the intent of the legislature that the legislature will responsibly invest 18 the amounts received after December 31, 2007, as the result of the enactment of this 19 Act that exceed the amounts that would have been received under AS 43.55.011 - 20 43.55.180, as those provisions read on December 19, 2007 [JUNE 30, 2007], as if 21 those provisions had been applied after December 31, 2007, by making appropriations 22 to the following: 23 (1) the public education fund (AS 14.17.300); 24 (2) the budget reserve fund (art. IX, sec. 17, Constitution of the State 25 of Alaska); 26 (3) to extinguish the amount of the employers' unfunded liability in the 27 teachers' defined benefit retirement plan and the public employees' defined benefit 28 retirement plan; 29 (4) the development and implementation of a long-range fiscal plan for 30 the state; and 31 (5) for statewide energy needs of Alaskans to assist with rising energy
01 costs. 02 * Sec. 3. The uncodified law of the State of Alaska enacted in sec. 71, ch. 1, SSSLA 2007, 03 is amended to read: 04 TRANSITION: PAYMENT OF TAX; FILING. (a) A person subject to tax 05 under AS 43.55 that is required to make one or more installment payments of 06 estimated tax or other payment of tax under AS 43.55.020(a) during the period after 07 March 31, 2006, and before the effective date of sec. 22, ch. 1, SSSLA 2007 [OF 08 THIS ACT], and under AS 43.55.020(a), as repealed and reenacted by sec. 22, ch. 1, 09 SSSLA 2007 [OF THIS ACT], for the production of oil or gas during a month after 10 March 31, 2006, and before the effective date of sec. 22, ch. 1, SSSLA 2007, [OF 11 THIS ACT] but that failed to pay the full amount of the installment payments or other 12 payment of tax required under AS 43.55 because of the retroactive application of 13 AS 43.55.165(e)(6) and (19), as amended and enacted in the amendment to 14 AS 43.55.165(e) in sec. 60, ch. 1, SSSLA 2007 [OF THIS ACT], that are retroactive 15 to April 1, 2006, under sec. 74(b), ch. 1, SSSLA 2007 [OF THIS ACT, AND THE 16 RETROACTIVE APPLICATION OF SECS. 15 - 28, 32 - 35, 53 - 61, 63, 65, AND 17 66 OF THIS ACT, AND THAT PART OF AS 43.55.165(e) IN SEC. 60 OF THIS 18 ACT UNDER SEC. 74(d) OF THIS ACT], shall pay, before April 1, 2008, the balance 19 of any tax due under AS 43.55 for the period after March 31, 2006, and before 20 December 20, 2007 [THE EFFECTIVE DATE OF THIS SECTION]. 21 (b) A person required to file a statement under AS 43.55.030(a), as amended 22 by sec. 47, ch. 1, SSSLA 2007 [OF THIS ACT], or a statement under AS 43.55.030(e) 23 or (f), as enacted by sec. 49, ch. 1, SSSLA 2007 [OF THIS ACT], but that failed to 24 file a statement required under AS 43.55 because of the retroactive application of 25 sections of ch. 1, SSSLA 2007 [THIS ACT UNDER SEC. 74(d) OF THIS ACT], 26 shall file, before April 1, 2008, any statement required to have been filed after June 30, 27 2007, and before December 20, 2007 [THE EFFECTIVE DATE OF THIS 28 SECTION]. 29 * Sec. 4. The uncodified law of the State of Alaska enacted in sec. 72, ch. 1, SSSLA 2007, 30 is amended to read: 31 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding
01 any contrary provision of AS 44.62.240, 02 (1) if the Department of Revenue expressly designates in the regulation 03 that the regulation applies retroactively to that date, a regulation adopted by the 04 Department of Revenue to implement, interpret, make specific, or otherwise carry out 05 secs. 15 - 28, 32 - 35, 53 - 61, 63, 65, and 66, ch. 1, SSSLA 2007, applies 06 retroactively to December 20, 2007 [OF THIS ACT MAY APPLY 07 RETROACTIVELY TO JULY 1, 2007], except that a regulation adopted by the 08 Department of Revenue to implement, interpret, make specific, or otherwise carry out 09 AS 43.55.165(e)(6) and (19), as amended and enacted in the amendment to 10 AS 43.55.165(e) in sec. 60, ch. 1, SSSLA 2007 [OF THIS ACT], may apply 11 retroactively to April 1, 2006 [, AND A REGULATION ADOPTED BY THE 12 DEPARTMENT OF REVENUE TO IMPLEMENT, INTERPRET, MAKE 13 SPECIFIC, OR OTHERWISE CARRY OUT AS 43.55.165(k) AND (l), AS 14 ENACTED BY SEC. 62 OF THIS ACT, MAY APPLY RETROACTIVELY TO 15 JANUARY 1, 2007]; 16 (2) a regulation adopted by the Department of Natural Resources to 17 implement, interpret, make specific, or otherwise carry out statutory provisions for the 18 administration of oil and gas leases issued under AS 38.05.180(f)(3)(B), (D), or (E), to 19 the extent the regulation deals with the treatment of oil and gas production taxes in 20 determining net profits under those leases, may apply retroactively to April 1, 2006, if 21 the Department of Natural Resources expressly designates in the regulation that the 22 regulation applies retroactively to that date. 23 * Sec. 5. AS 43.55.165(k) and (l) are repealed. 24 * Sec. 6. Sections 1(c), 74(c), and 74(d), ch. 1, SSSLA 2007, are repealed. 25 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 APPLICABILITY OF CERTAIN SECTIONS OF CH. 1, SSSLA 2007. Sections 15 - 28 28, 32 - 35, 53 - 61, 63, 65, and 66, ch. 1, SSSLA 2007, apply to oil and gas produced after 29 December 19, 2007. 30 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 TRANSITION: APPLICATION OF OVERPAYMENT. A person that overpaid an 02 amount of tax on the production of oil and gas produced after December 31, 2006, and before 03 December 20, 2007, because of the retroactivity of certain provisions of ch. 1, SSSLA 2007, 04 under sec. 74(c) or (d) or both of ch. 1, SSSLA 2007, as that section read before the effective 05 date of this Act, shall take the amount of the overpayment as a credit against a tax payment 06 that is due under AS 43.55.011 - 43.55.170 after the effective date of this Act. 07 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT. Sections 1 - 7 of 10 this Act are retroactive to December 20, 2007. 11 * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).