SB 106: "An Act establishing a tax on certain entities producing or transporting oil or gas in the state; and providing for an effective date."
00 SENATE BILL NO. 106 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, 2021. 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, 2021.