Alaska: Committee takes up decoupling bill
JUNEAU, Alaska—Alaska's revenue commissioner doesn't anticipate a repeat of 2010, when Gov. Sean Parnell vetoed a measure that would have changed the state's system of taxing oil and gas production together.
Bryan Butcher told the Senate Finance Committee he's thinks Revenue can work with lawmakers to develop a plan that's agreeable to both sides.
The committee has proposed the same bill that Parnell vetoed as a starting point for a discussion on the issue, expected to be included in the broader oil tax debate.
Under the current system, there's risk of a dilution effect on revenues when oil prices are high relative to gas. That hasn't been a problem yet, given the little commercial gas production. But it could mean huge revenue losses at the time of a major oil sale.
