2015-04-07                     Senate Journal                      Page 0849
SB 100                                                                                                                        
SENATE BILL NO. 100 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to the assessment of property for oil                                                                
          and gas exploration, production, and pipeline                                                                         
          transportation property tax on a North Slope natural                                                                  

2015-04-07                     Senate Journal                      Page 0850
          gas project; amending the definition of "taxable                                                                      
          property"; adding a definition for "North Slope                                                                       
          natural gas project"; and making conforming                                                                           
          amendments."                                                                                                          
                                                                                                                                
was read the first time and referred to the Community and Regional                                                              
Affairs, Resources and Finance Committees.                                                                                      
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
                                                                                                                                
Governor's transmittal letter dated April 6:                                                                                    
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the assessment of                                                            
property for the property tax for a North Slope natural gas project.                                                            
                                                                                                                                
Due to the achievements by the Municipal Advisory Gas Project                                                                   
Review Board and the Alaska Liquefied Natural Gas project, it is time                                                           
to move forward with legislation to address the property tax on a                                                               
North Slope natural gas project. Revenues from the property tax on a                                                            
North Slope natural gas project are anticipated to provide vital support                                                        
for the State and local governments to establish sustainable fiscal                                                             
platforms.                                                                                                                      
                                                                                                                                
The bill would provide a framework for the assessment of property tax                                                           
on a North Slope natural gas project once the project begins to                                                                 
transport gas. The assessment for property exclusively used for a                                                               
North Slope natural gas project would be based on the full and true                                                             
value of the property determined by adjusted original cost and                                                                  
annualized throughput. The bill would define a North Slope natural                                                              
gas project for the purposes of the property tax to include a gas                                                               
treatment plant, a gas pipeline, a liquefaction plant, and a marine                                                             
terminal. Consistent with the concerns expressed by local governments                                                           
and legislative direction last year, the property tax on existing North                                                         
Slope oil and gas and pipeline properties would be unchanged by this                                                            
bill.                                                                                                                           
                                                                                                                                

2015-04-07                     Senate Journal                      Page 0851
There is still much work to be done before this all-important project                                                           
can be built. This bill demonstrates my administration's continued                                                              
commitment to building a gasline to provide gas to Alaskans and                                                                 
liquefied natural gas to world markets. I urge your prompt and                                                                  
favorable action on this measure.                                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor