Legislature(2019 - 2020)
2019-02-20 House Journal
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Full Journal pdf2019-02-20 House Journal Page 0181 HB 59 HOUSE BILL NO. 59 by the House Rules Committee by request of the Governor, entitled: "An Act repealing the credit for municipal payments against the state levy of tax on oil and gas exploration, production, and pipeline transportation property; repealing the levy of tax by a municipality on oil and gas exploration, production, and pipeline transportation property; and providing for an effective date." was read the first time and referred to the Resources, Community & Regional Affairs, and Finance Committees. The following fiscal note(s) apply: 1. Zero, Dept. of Commerce, Community, & Economic Development 2. Zero, Dept. of Education & Early Development 3. Fiscal, Dept. of Education & Early Development/Fund Capitalization 4. Fiscal, Dept. of Revenue The Governor's transmittal letter dated February 12 follows: "Dear Chief Clerk: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to repealing the credit for municipal payment against the state levy of tax on oil and gas exploration, production, and pipeline transportation property and the levy of tax by a municipality on oil and gas exploration, production, and pipeline transportation property. Under current law, the state assesses the value of oil and gas exploration, production, and pipeline transportation property. Municipalities with this property in their jurisdiction can then levy a property tax based on the state's assessment. Taxpayers are then required to pay a tax to two taxing jurisdictions – the municipality and the state. This system is inefficient for both taxpayers and the state. Taxpayers are allowed to credit payments made to a municipality