Legislature(2017 - 2018)BARNES 124
07/15/2017 01:00 PM Senate CONFERENCE COMMITTEE ON HB 111
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| Audio | Topic |
|---|---|
| Start | |
| HB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 111 | TELECONFERENCED | |
HB 111-OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS
9:22:58 PM
CHAIR TARR announced that the only order of business would be
HOUSE BILL NO. 111, ""An Act relating to the oil and gas
production tax, tax payments, and credits; relating to interest
applicable to delinquent oil and gas production tax; and
providing for an effective date."
[Before the committee were the CSHB 111(FIN) and SCS CSHB
111(FIN).]
9:23:00 PM
CHAIR TARR advised that the Alaska House of Representatives and
the Senate had approved SCR 202, allowing the committee to take
official action on HB 111. She briefly explained the points of
agreement and major features of the bill to include as follows:
the end of cash credits statewide, effective July 1, 2017;
establish a carry forward annual loss program allowing 100
percent of the carry forward lease expenditures to be deducted
in the calculation of future production taxes once the property
comes into production; ring fencing that ensures carry forward
lease expenditures may only be deducted in the calculation of
future taxes after the project that incurred those expenses also
comes into regular production; a down lift starting after the
tenth year a lease expenditure had been carried forward on a
non-producing property, or seventh year for a property in
production, will be reduced in value by 10 percent based on the
value of the preceding year; establish a working group to
address oil and gas tax issues with new consultants; allow
application of unpaid credits toward corporate income taxes and
production tax audits with certain limitations, such as the CVR
language; interest rates at 5.25 percent above the federal
reserve rate; and technical amendments, suggested by the
Department of Revenue, related to retroactive regulation making
to accommodate the July 1, 2017 effective date for the end of
the cash credits, as well as the CVR language to clarify
limitations.
9:25:08 PM
CHAIR TARR explained that the proposed conference committee bill
makes changes to the versions passed in the House of
Representatives and the Senate and therefore requires limited
powers of free conference, detailed in a memorandum the
committee will sign. She explained that Sec. 38 is entirely new
and provides transition language to allow for the retroactive
regulation making to accommodate the July 1, 2017 effective date
for the elimination of cash credits and therefore requires free
conference powers. Chair Tarr entertained a motion to request
the necessary limited and free conference powers.
9:25:40 PM
CHAIR GIESSEL made a motion that the committee pass limited
powers of free conference for HB 111, and that Uniform Rules
42(a) and 42(b) be suspended relating to tax credits eligible
for purchase by the state during calendar year 2017. There
being no objection, the motion passed.
9:26:19 PM
The committee took an at-ease from 9:26 p.m. to 9:28 p.m.
9:28:01 PM
CHAIR GIESSEL made a motion that pursuant to receiving the
powers and suspension of the Uniform Rules as requested, the
Conference Committee on HB 111 recommends that the House of
Representatives and the Senate adopt CCSHB 111, Version 30-
LS0450\OO, Shutts/Nauman, 7/15/17, and its forthcoming fiscal
notes, with individual recommendations.
CHAIR TARR advised that the motion before the committee is to
send the report to its respective bodies recommending the
approval of Conference CSHB 111, Version 30-LS0450\OO.
9:29:10 PM
A roll call vote was taken. Representatives Tarr, Josephson,
and Talerico and Senators Giessel, Stedman, and Olson voted in
favor of passing Conference CSHB 111, Version 30-LS0450\OO, with
its forthcoming fiscal notes, to the committee's respective
bodies. There being no objection, Conference CSHB 111 passed
out of the Conference Committee on CCS HB 111.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB111 CCS Comparison 2017.07.15.pdf |
JHB111 7/15/2017 1:00:00 PM |
HB 111 |
| CCCSHB 111-Version O.pdf |
JHB111 7/15/2017 1:00:00 PM |
HB 111 |