Alaskan tax reform: Gas raises questions

摘要

The second part on Alaskan tax reform: Gas raises questions is presented. The progressivity mechanism has been through one test (high oil prices), and from the state's point of view it worked. Prices went to levels in 2008 only previously dreamed of, and the progressivity mechanism worked to produce the intended result of a significantly higher state take. The general effect for any taxpayer with gas and oil production might be that adding gas production actually lowers production tax liability. Consultants for the current administration have suggested that the gasoline tariff is likely to be about $5/MMbtu, which translates into a tariff of $30/boe of gas. The industry's perception of the possibility or likelihood of such a tax change to fix the issues posed by gas for a combined progressivity tax mechanism is likely to provide its own inhibition to further development and investment in a gas line.