2006-03-22                     House Journal                      Page 2834
HB 488                                                                                            
The Resources Committee has considered:                                                             
                                                                                                    
     HOUSE BILL NO. 488                                                                             
     "An Act repealing the oil production tax and gas production tax                                
     and providing for a production tax on the net value of oil and gas;                            
     relating to the relationship of the production tax to other taxes;                             
     relating to the dates tax payments and surcharges are due under                                
     AS 43.55; relating to interest on overpayments under AS 43.55;                                 
     relating to the treatment of oil and gas production tax in a                                   
     producer's settlement with the royalty owner; relating to flared                               
     gas, and to oil and gas used in the operation of a lease or property,                          
     under AS 43.55; relating to the prevailing value of oil or gas under                           
     AS 43.55; providing for tax credits against the tax due under                                  
     AS 43.55 for certain expenditures, losses, and surcharges; relating                            
     to statements or other information required to be filed with or                                
     furnished to the Department of Revenue, and relating to the                                    
     penalty for failure to file certain reports, under AS 43.55; relating                          
     to the powers of the Department of Revenue, and to the disclosure                              
     of certain information required to be furnished to the Department                              
     of Revenue, under AS 43.55; relating to criminal penalties for                                 
     violating conditions governing access to and use of confidential                               
     information relating to the oil and gas production tax; relating to                            
     the deposit of money collected by the Department of Revenue                                    
     under AS 43.55; relating to the calculation of the gross value at                              
     the point of production of oil or gas; relating to the determination                           
     of the net value of taxable oil and gas for purposes of a production                           
     tax on the net value of oil and gas; relating to the definitions of                            
     'gas,' 'oil,' and certain other terms for purposes of AS 43.55;                                
     making conforming amendments; and providing for an effective                                   
     date."                                                                                         
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    

2006-03-22                     House Journal                      Page 2835
     CS FOR HOUSE BILL NO. 488(RES)                                                                 
     "An Act repealing the oil production tax and gas production tax                                
     and providing for a production tax on oil and gas; relating to the                             
     relationship of that tax to other taxes, to the dates those tax                                
     payments and surcharges are due, to interest on overpayments of                                
     the tax, and to the treatment of the tax in a producer's settlement                            
     with the royalty owners; relating to flared gas, and to oil and gas                            
     used in the operation of a lease or property under the production                              
     tax; relating to the prevailing value of oil or gas under the                                  
     production tax; providing for tax credits against the tax for certain                          
     expenditures and losses; amending the rates applicable to each of                              
     the two tax surcharges imposed on oil under the production tax                                 
     that are used to support the oil and hazardous substance release                               
     prevention and response fund and relating to those surcharges;                                 
     relating to statements or other information required to be filed                               
     with or furnished to the Department of Revenue, and relating to                                
     the penalty for failure to file certain reports, for the tax; relating to                      
     the powers of the Department of Revenue, and to the disclosure of                              
     certain information required to be furnished to the Department of                              
     Revenue, as applicable to the administration of the tax; relating to                           
     criminal penalties for violating conditions governing access to and                            
     use of confidential information relating to the tax, and to the                                
     deposit of tax money collected by the Department of Revenue;                                   
     relating to the calculation of the gross value at the point of                                 
     production of oil or gas; relating to the determination of the                                 
     production tax value of oil and gas for purposes of a tax on the                               
     production tax value of oil and gas; relating to the definitions of                            
     'gas,' 'oil,' and certain other terms for purposes of the production                           
     tax, and as the definition of the term 'gas' applies in the Alaska                             
     Stranded Gas Development Act; making conforming amendments;                                    
     making uniform throughout the state the deadline for certain                                   
     exploration expenditures used as credits against the production tax                            
     on oil and gas produced from a lease or property in the state by                               
     extending to July 1, 2016, the deadline for those expenditures and                             
     limiting use of the resultant credits; and providing for an effective                          
     date."                                                                                         
                                                                                                    
The report was signed by Representatives Ramras and Samuels, Co-                                    
chairs, with the following individual recommendations:                                              
                                                                                                    

2006-03-22                     House Journal                      Page 2836
Do pass (6):  Gatto, Seaton, Elkins, Olson, Ramras, Samuels                                         
                                                                                                    
Do not pass (1):  Crawford                                                                          
                                                                                                    
Amend (1):  Kapsner                                                                                 
                                                                                                    
The following fiscal note(s) apply to CSHB 488(RES):                                                
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
2.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
HB 488 was referred to the Finance Committee.