A Citizen’s Guide

From Dillon in Juneau:

The Legislature appears destined to pass a higher tax on oil companies this week.

The full Senate takes up the bill at noon and is expected to pass a 25 percent tax rate with a 0.4 progressivity surcharge as oil prices rise before the end of the day. The House will likely concur tonight – if the bill isn’t substantially changed on the Senate floor. That would leave one day for a possible conference committee, if needed.

The one possible glitch is a provision that puts a standard tax deduction on the North Slope legacy fields. Rep. Harry Crawford insists the standard deduction stay in the bill – and without a three-year sunset provision.

Sen. Johnny Ellis, D-Anchorage, said the votes are there for the 25 percent tax rate and higher progressivity, but the standard deduction is still in doubt.

If it doesn’t survive the Senate, the question is whether Crawford and his supporters will sink the bill in the House.

Such a move could be politically dangerous given all the work that’s been put into getting a tax hike past the industry’s supporters.