Legislature(2013 - 2014)
2013-02-28 Senate Journal
Full Journal pdf2013-02-28 Senate Journal Page 0439 SB 21 The Resources Committee considered SENATE BILL NO. 21 "An Act relating to appropriations from taxes paid under the Alaska Net Income Tax Act; relating to the oil and gas production tax rate; relating to gas used in the state; relating to monthly installment payments of the oil and gas production tax; relating to oil and gas production tax credits for certain losses and expenditures; relating to oil and gas production tax credit certificates; relating to nontransferable tax credits based on production; relating to the oil and gas tax credit fund; relating to annual statements by producers and explorers; relating to the determination of annual oil and gas production tax values including adjustments based on a percentage of gross value at the point of production from certain leases or properties; making conforming amendments; and providing for an effective date" and recommended it be replaced with CS FOR SENATE BILL NO. 21(RES) "An Act relating to appropriations from taxes paid under the Alaska Net Income Tax Act; providing a tax credit against the corporation income tax for qualified oil and gas service industry expenditures; relating to the oil and gas production tax rate; relating to gas used in the state; relating to monthly installment payments of the oil and gas production tax; relating to oil and gas production tax credits for certain losses and expenditures; relating to oil and gas production tax credit certificates; relating to nontransferable tax 2013-02-28 Senate Journal Page 0440 credits based on production; relating to the oil and gas tax credit fund; relating to annual statements by producers and explorers; relating to the determination of annual oil and gas production tax value including adjustments based on a percentage of gross value at the point of production from certain leases or properties; establishing the Oil and Gas Competitive Review Board; making conforming amendments; and providing for an effective date." and further recommended the adoption of the following Resources Committee Letter of Intent: Letter of Intent It is the intent of the Legislature that Alaska's decline in oil production be arrested and reversed; and that the State become competitive within its peer group in the global market of oil and gas resources. The legislature intends, through passage of SB 21, to: (1) put in place a system for the taxation of oil and gas that is fair, stable, predictable, durable, balanced, and free from complexity across a wide range of oil prices; (2) promote a long-term, competitive, and vibrant oil and gas industry in the state; (3) acknowledge that the oil and gas industry plays an historic and crucial role in the state, providing revenue for and underpinning the resource-based economy of the state; (4) attract the necessary capital investment from the industry to increase oil and gas production, increase the throughput of the Trans Alaska Pipeline System, incentivize the exploration and development of new oil, provide a bridge to production for the challenged and stranded oil and gas resources in the state, return the state to a leadership position in national domestic oil production, and ensure the prosperity of future generations of Alaskans; (5) reflect the policy determination that the legislature chooses opportunity over decline. Signing do pass: Senator Giessel, Chair; Senators McGuire, Dyson. Signing do not pass: Senator French. Signing no recommendation: Senators Micciche, Bishop. Signing amend: Senator Fairclough. 2013-02-28 Senate Journal Page 0441 The following fiscal information was published today: Fiscal Note No. 3, Department of Revenue Fiscal Note No. 4, indeterminate, Department of Revenue Fiscal Note No. 5, indeterminate, Department of Natural Resources The bill was referred to the Finance Committee.