HB 3005: "An Act providing for an additional production tax on oil when the price index on oil is above a certain amount; and providing for an effective date."
00 HOUSE BILL NO. 3005 01 "An Act providing for an additional production tax on oil when the price index on oil is 02 above a certain amount; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.55 is amended by adding a new section to read: 05 Sec. 43.55.014. Additional production tax on oil. (a) In addition to the taxes 06 levied under AS 43.55.011(a) - (c), for each month for which the oil price index 07 determined under (b) of this section is greater than zero, there is levied on the 08 producer of oil a tax for all oil produced during that month from each lease or property 09 in the state, less any oil the ownership or right to which is exempt from taxation. The 10 tax is equal to .35 percent of the gross value at the point of production of the oil 11 multiplied by the oil price index as determined under this section. 12 (b) The oil price index for a month is the number of dollars equal to the 13 average United States Gulf Coast price per barrel determined under (c) of this section 14 for that month of West Texas Intermediate crude oil, less 50, except that, if the
01 average price determined under (c) of this section is 02 (1) not more than $50 a barrel, the oil price index is zero; and 03 (2) more than $150 a barrel, the oil price index is 100. 04 (c) For purposes of (b) of this section, the department may calculate the 05 average price or may, by regulation, specify the method by which the average price 06 shall be calculated with reference to one or more published sources of price 07 information. If, in the department's judgment, reliable published sources of price 08 information on West Texas Intermediate crude oil cease, or appear likely to soon 09 cease, to be available, or if, in the department's judgment, the price of West Texas 10 Intermediate crude oil ceases, or appears likely to soon cease, to be a reliable indicator 11 of the general price level of crude oils, the department shall, by regulation, specify a 12 substitute for the use of West Texas Intermediate crude oil. The substitute formula 13 specified by the department under this subsection must bear, as nearly as is reasonably 14 possible, the same relationship to the general price level of crude oils as did, on the 15 effective date of this section, the United States Gulf Coast price of West Texas 16 Intermediate crude oil. 17 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 TRANSITION: RETROACTIVITY OF REGULATIONS; PAYMENT OF TAX. (a) 20 Notwithstanding any contrary provision of AS 44.62.240, a regulation adopted by the 21 Department of Revenue to implement, interpret, make specific, or otherwise carry out 22 AS 43.55.014, enacted by sec. 1 of this Act, may apply retroactively to April 1, 2006, if the 23 Department of Revenue expressly designates in the regulation that the regulation applies 24 retroactively to April 1, 2006. 25 (b) A person subject to tax under AS 43.55.014, enacted in sec. 1 of this Act, shall 26 pay the amount of tax due under AS 43.55.014 that accrues after March 31, 2006, and before 27 the effective date of this Act 28 (1) in a single payment within 30 days after the effective date of this Act; or 29 (2) in six equal monthly payments, with the first payment due within 30 days 30 after the effective date of this Act. 31 (c) The amount of any tax due under AS 43.55.014, enacted in sec. 1 of this Act, that
01 accrues after March 31, 2006, and before the effective date of this Act and that is not paid 02 within 30 days after the effective date of this Act accrues interest at the rate applicable to a 03 delinquent tax in AS 43.05.225 starting on the 31st day after the effective date of this Act. 04 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 RETROACTIVITY. Section 1 of this Act is retroactive to April 1, 2006, and applies 07 to oil produced after March 31, 2006. 08 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).