Oil tax bill advances; special session looms

Associated PressApril 11, 2012 

JUNEAU -- The Senate Finance Committee has advanced a bill changing Alaska's oil tax structure, virtually guaranteeing a special session on the issue.

Earlier Wednesday, Gov. Sean Parnell said he'd call a special session if the Senate passed an oil tax bill by Sunday, the Legislature's scheduled adjournment date. The Senate still must vote on the bill before sending it to the House.

One of the challenges in crafting the bill is arriving at one capable of getting enough buy-in in the Senate.

The bill calls for a progressive severance tax that would be levied on gross production after royalties.

It would reward producers in the legacy fields for production above a decline curve and address new production by lowering progressivity on new fields for the first 10 years.

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