Legislature(2025 - 2026)SENATE FINANCE 532
04/15/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| University of Alaska Finance Budget Subcommittee of the Whole Close-out | |
| SB92 | |
| SB137 | |
| SB133 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 92 | TELECONFERENCED | |
| + | SB 137 | TELECONFERENCED | |
| + | SB 133 | TELECONFERENCED | |
SENATE BILL NO. 92
"An Act establishing an income tax on certain entities
producing or transporting oil or gas in the state; and
providing for an effective date."
9:08:11 AM
SENATOR CATHY GIESSEL, SPONSOR, reintroduced the
legislation. She expressed that the bill was a simple
update to the state's corporate tax structure and would
place the same responsibility on the many types of
corporations that were profiting from the state's oil and
gas resources. She stressed that the bill effectuated the
state constitution in ensuring that the state received
maximum benefit for the people in the state.
9:09:07 AM
Co-Chair Hoffman OPENED public testimony.
9:09:40 AM
REBECCA LOGAN, CHIEF EXECUTIVE OFFICER, THE ALLIANCE,
ANCHORAGE (via teleconference), testified against SB 92.
The Alliance opposed the bill, which she thought clearly
targeted one company and one industry and ignored future
investment. She asserted that Hilcorp had invested in Cook
Inlet, which had led to increased oil and gas production
and delayed shortages. Hilcorp had invested in the North
Slope, resulting in greater production than would otherwise
have happened. She thought the tax policy in 2012 had led
to more production and more royalties.
9:11:35 AM
ADAM HASSE-ZAMUDIO, SELF, WASHINGTON DC (via
teleconference), spoke in support of the legislation. He
supported closing the tax loophole that benefited out-of-
state corporations. He did not think the tax loophole
incentivized companies to support the state's economy. He
referenced the constitution.
9:12:50 AM
MARY MAY, SELF, SOLDOTNA (via teleconference), testified in
support of SB 92. She thought 77 percent of Alaskans were
in support of the bill's proposal. She referenced the state
constitution. She thought Hilcorp paid taxes in every state
except Alaska. She emphasized that there was no evidence
that giving a tax break to S corporations would bring more
revenue to the state. She noted that the bill targeted
companies with taxable income over $5 million and would not
affect small businesses. She thought it was far past time
that the state benefited from the extraction of resources.
She mentioned attrition because of crumbling infrastructure
and under funded schools.
9:16:05 AM
THOMAS BACHERK, SELF, FAIRBANKS (via teleconference), spoke
in support of the bill. He thought it was far overdue for
such a change. He thoguht there was no reason S
corporations should be given an advantage over C
corporations. He approved of the additional funds to state
coffers to fund education and state services. He pointed
out that the company could deduct any state tax from its
federal tax liability.
9:17:51 AM
SCOTT CRASS, SELF, FAIRBANKS (via teleconference),
testified in support of the legislation. He thought the
bill was common-sense reform that would bring over $100
million into the state's revenue. He thought Alaska was the
only state that did not collect income tax from C
corporations. He did not think the bill was punitive, but
thought it leveled the playing field. He thought the bill
was a long-overdue alignment with other states. He
referenced the state constitution. He thought the reform
would allow the state to recapture tax dollars sent to the
federal government. He thought the bill encapsulated years
of recommendations from fiscal working groups.
9:20:12 AM
SARAH FURMAN, SELF, FAIRBANKS (via teleconference), spoke
in support of the bill. She was concerned about the outlook
for the state budget and the projected deficit. She
referenced school closures in Fairbanks. She supported
increases in education spending and energy investment and
thought the bill would bring in much-needed revenue. She
thought it was unfair that some corporations paid state
income tax while others did not. She thought every other
state required S corporations to pay tax. She cited recent
polling that indicated 70 percent of Alaskans supported the
bill.
9:22:37 AM
CATHY WALLING, SELF, FAIRBANKS (via teleconference),
testified in support of the legislation. She thanked the
other testifiers and echoed their comments. She thought the
bill was a long-awaited effort to close a loophole. She
supported more revenue generation and leveling the playing
field. She thought the state and country were in a very
different position than it was in 2012.
9:25:06 AM
JESSE CARLSTROM, SELF, ANCHORAGE (via teleconference),
spoke against the bill. He had lived in Alaska for over 30
years and worked in the shipping industry. He thought the
bill was bad policy that targeted one company and one
industry. He thought the bill ignored what Hilcorp had done
for the state. He discussed Hilcorp's payment of royalties
and its investments. He discussed job creation. He was
concerned about the message the bill sent to those wanting
to invest in the state.
9:26:47 AM
THERESA OBERMEYER, SELF, ANCHORAGE (via teleconference),
testified in support of the legislation. She associated
herself with the comments made earlier in support of the
bill. She lived in the state for 47 years. She thought the
state was at a turning point. She thought the tax regime
should have been changed in 2020. She mentioned former
Governor Frank Murkowski and his support of the bill.
Co-Chair Hoffman CLOSED public testimony.
SB 92 was HEARD and HELD in committee for further
consideration.