In my latest column for State Tax Notes, I discuss several tax-related bills that were introduced during the most recent Alaska legislative session, which ended on May 17. Of the session, I noted that “…after the Alaska Department of Revenue released its Spring 2023 Revenue Forecast in March, the level of activity around tax legislation
Things Heat Up in Juneau
In my most recent column for State Tax Notes, I look at the numbers in the Alaska Department of Revenue’s (DOR) spring 2023 revenue forecast, which the governor and Legislature rely on for budget discussions during the legislative session. I also provide a summary of some of the bills legislators introduced during the last
Bracing for Another Budget Debate
In my most recent column for State Tax Notes, I look at the numbers in the Alaska Department of Revenue’s (DOR) 2022 Fall Revenue Sources Book, which tabulates historical revenues and provides the revenue forecast that the governor and Legislature will rely on for budget discussions during the legislative session. I also discuss the status of the refundable/rebatable tax credits that have been available for more than a decade in Alaska to companies that invested in oil and gas exploration and development and in refinery infrastructure in the state.
Unrestricted revenues in Alaska, which fund government operations, are driven by royalties for oil produced from state leases and by three categories of taxes—oil and gas production taxes, petroleum property taxes, and corporate income taxes. As a result of lower predicted oil prices and reduced production, DOR lowered its 2022 fall forecast for unrestricted general fund revenue from that of its official spring 2022 forecast to $3.9 billion ($1.1 billion decrease) for fiscal 2023 and $3.4 billion ($0.7 billion decrease) for fiscal 2024.
Tax Actions by the Alaska Legislature in 2022
In my most recent column for State Tax Notes, I look at several bills that did and didn’t pass in the latest session of the Alaska State Legislature, which adjourned in May, and at what may be on the horizon.
Legislators introduced several bills that would have increased taxes on individuals or businesses in Alaska
Alaska Gets a Boost from Oil
In my latest column for State Tax Notes, I outline the impacts rising oil prices are having on the Alaska economy and the state’s citizens, the accomplishments and tasks ahead of the Legislature as it passes the midway point in its regular session, and the fall prognostication by the Department of Revenue for revenue
2021 Alaska Legislative Sessions Run From ‘Frenzy to Fizzle’
In my latest column for State Tax Notes, I outline several bills to increase taxes introduced during the 2021 sessions of the Legislature, and discuss the status of the government’s repayment of rebatable tax credits, two packets of regulations promulgated by the DOR, and a preliminary revenue forecast issued by the DOR for 2022.
Recent Alaska Legislative Sessions Leave Future Unclear for State’s Taxpayers
In my latest column for State Tax Notes, I provide an update on the status of the Alaska Permanent Fund and on actions taken during the regular legislative session and three special sessions to attempt to clarify the many questions that exist surrounding Alaska’s fiscal structure.
The Permanent Fund was created in 1976 through an
Jon Iversen: Trials of the Season
In my latest column for State Tax Notes, I provide an update on Alaska’s budget woes, on possible tax hikes and fiscal uncertainty still faced by the state’s taxpayers, and on the state’s ongoing inability to make payment to holders of over $700 million in rebatable oil and gas production tax credits.
In 2020,
Jon Iversen Discusses Alaska Supreme Court Decision Overturning Tax Credit Bond Program
In previous columns for State Tax Notes, I have discussed H.B. 331, which was passed by the Alaska State Legislature to remedy the state’s failure to pay off outstanding rebatable oil and gas production tax credits. However, the Bill faced numerous lawsuits, culminating in a Sept. 2020 Alaska Supreme Court ruling that the financing
Alaska Faces Challenges of COVID-19, Low Oil Prices and Increase in Production Tax
In my latest column for State Tax Notes, I look at the challenges that Alaska, and particularly the state’s oil and gas industry, has faced in 2020 thanks to the COVID-19 pandemic, low oil prices and the threat of a major increase to Alaska’s oil and gas production tax.
The state of Alaska is
Alaska Oil & Gas Conservation Commission Proposes Changes to Bond Regulation
The Alaska Oil and Gas Conservation Commission (“AOGCC”) is considering revisions to 20 AAC 25.025 of the Alaska Administrative Code. One revision would “allow a reduction in the requisite bond amount if an operator demonstrates that it has a bond in place with the landowner dedicated exclusively to the plugging and abandonment of a well