00                            SENATE BILL NO. 186                                                                         
01 "An Act establishing a tax on certain entities producing or transporting oil or gas in the                              
02 state; and providing for an effective date."                                                                            
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       SHORT TITLE. This Act may be known as the Petroleum Corporate Tax Loophole                                        
07 Elimination Act.                                                                                                      
08    * Sec. 2. AS 43.20 is amended by adding a new section to read:                                                     
09            Sec. 43.20.019. Tax on income attributable to a qualified entity. (a) If an                                
10       entity has qualified taxable income over $4,000,000 in a tax year, the entity shall pay a                         
11       tax of 9.4 percent on the qualified taxable income over $4,000,000.                                               
12            (b)  The tax under this section does not apply to a corporation paying tax under                             
13       AS 43.20.011.                                                                                                     
14            (c)  The department may aggregate the qualified taxable income of two or                                     

01       more entities for the purpose of determining the tax due under this section if the                                
02       department determines that, without the provisions of this section, the qualified                                 
03       taxable income would reasonably be expected to be attributed to a single entity.                                  
04            (d)  In this section,                                                                                        
05                 (1)  "entity" means a sole proprietorship, partnership, or entity that has                              
06       elected to file federal returns under 26 U.S.C. 1361 - 1379 (Internal Revenue Code);                              
07                 (2)  "qualified taxable income" means income from the production of                                     
08       oil or gas from a lease or property in the state or from the transportation of oil or gas                         
09       by pipeline in the state.                                                                                         
10    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       APPLICABILITY. Section 2 of this Act applies to an entity with qualified taxable                                  
13 income over $4,000,000 for a tax year beginning on or after the effective date of sec. 2 of this                        
14 Act.                                                                                                                    
15    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
16 read:                                                                                                                   
17       TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations                                          
18 necessary to implement the changes made by this Act. The regulations take effect under                                  
19 AS 44.62 (Administrative Procedure Act), but not before July 1, 2020.                                                 
20    * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c).                                    
21    * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect July 1, 2020.