A Citizen’s Guide

JUNEAU—The latest attempt to rewrite Alaska’s oil and gas production taxes is headed to the House floor.

The House Finance Committee on Thursday moved the bill from its committee on a 9-1 vote, with Rep. Beth Kerttula, D-Juneau, the sole dissenter.

Under the proposal, companies’ base tax rates would be between 20 percent and 25 percent of their profits from their Alaska operations. That tax rate would be based on a company’s capital investments: The more a company invests in Alaska, the lower its tax rate. The less a company invests, the higher the rate.

When the price of oil reaches about $55 per barrel, that tax rate would start to rise.

The bill is a departure from the original tax rewrite, which would have imposed a flat tax on oil companies’ Alaska profits. But the Legislature has twice this year failed to agree on what the tax rate should be, or how much that rate should rise at high oil prices.

Republican majority lawmakers on the committee see this “produce or pay” plan as a compromise designed to increase tax revenue and encourage investment in Alaska.

The debate on the House floor is scheduled to begin Friday. If it passes, it will go to the Senate for consideration.

The special legislative session can adjourn no later than next Thursday.