Legislature(2005 - 2006)
2006-03-22 House Journal
Full Journal pdf2006-03-22 House Journal Page 2834 HB 488 The Resources Committee has considered: HOUSE BILL NO. 488 "An Act repealing the oil production tax and gas production tax and providing for a production tax on the net value of oil and gas; relating to the relationship of the production tax to other taxes; relating to the dates tax payments and surcharges are due under AS 43.55; relating to interest on overpayments under AS 43.55; relating to the treatment of oil and gas production tax in a producer's settlement with the royalty owner; relating to flared gas, and to oil and gas used in the operation of a lease or property, under AS 43.55; relating to the prevailing value of oil or gas under AS 43.55; providing for tax credits against the tax due under AS 43.55 for certain expenditures, losses, and surcharges; relating to statements or other information required to be filed with or furnished to the Department of Revenue, and relating to the penalty for failure to file certain reports, under AS 43.55; relating to the powers of the Department of Revenue, and to the disclosure of certain information required to be furnished to the Department of Revenue, under AS 43.55; relating to criminal penalties for violating conditions governing access to and use of confidential information relating to the oil and gas production tax; relating to the deposit of money collected by the Department of Revenue under AS 43.55; relating to the calculation of the gross value at the point of production of oil or gas; relating to the determination of the net value of taxable oil and gas for purposes of a production tax on the net value of oil and gas; relating to the definitions of 'gas,' 'oil,' and certain other terms for purposes of AS 43.55; making conforming amendments; and providing for an effective date." and recommends it be replaced with: 2006-03-22 House Journal Page 2835 CS FOR HOUSE BILL NO. 488(RES) "An Act repealing the oil production tax and gas production tax and providing for a production tax on oil and gas; relating to the relationship of that tax to other taxes, to the dates those tax payments and surcharges are due, to interest on overpayments of the tax, and to the treatment of the tax in a producer's settlement with the royalty owners; relating to flared gas, and to oil and gas used in the operation of a lease or property under the production tax; relating to the prevailing value of oil or gas under the production tax; providing for tax credits against the tax for certain expenditures and losses; amending the rates applicable to each of the two tax surcharges imposed on oil under the production tax that are used to support the oil and hazardous substance release prevention and response fund and relating to those surcharges; relating to statements or other information required to be filed with or furnished to the Department of Revenue, and relating to the penalty for failure to file certain reports, for the tax; relating to the powers of the Department of Revenue, and to the disclosure of certain information required to be furnished to the Department of Revenue, as applicable to the administration of the tax; relating to criminal penalties for violating conditions governing access to and use of confidential information relating to the tax, and to the deposit of tax money collected by the Department of Revenue; relating to the calculation of the gross value at the point of production of oil or gas; relating to the determination of the production tax value of oil and gas for purposes of a tax on the production tax value of oil and gas; relating to the definitions of 'gas,' 'oil,' and certain other terms for purposes of the production tax, and as the definition of the term 'gas' applies in the Alaska Stranded Gas Development Act; making conforming amendments; making uniform throughout the state the deadline for certain exploration expenditures used as credits against the production tax on oil and gas produced from a lease or property in the state by extending to July 1, 2016, the deadline for those expenditures and limiting use of the resultant credits; and providing for an effective date." The report was signed by Representatives Ramras and Samuels, Co- chairs, with the following individual recommendations: 2006-03-22 House Journal Page 2836 Do pass (6): Gatto, Seaton, Elkins, Olson, Ramras, Samuels Do not pass (1): Crawford Amend (1): Kapsner The following fiscal note(s) apply to CSHB 488(RES): 1. Zero, Dept. of Natural Resources 2. Fiscal, Dept. of Revenue HB 488 was referred to the Finance Committee.