Alaska: Estimates provided on oil profits bill

AP News
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Posted: Mar 01, 2012 11:32 AM
Alaska: Estimates provided on oil profits bill

Preliminary Revenue Department estimates show Alaska would've received $1.3 billion more from oil and gas companies over the last five years if a bill that would change how companies pay corporate income taxes had been in effect.

The fiscal note is attached to HB328. The bill, and a similar one in the Senate, would require that oil companies account for profit made in Alaska and pay state corporate income tax on that profit.

Under the current method, Rep. Paul Seaton says companies can essentially write-off less profitable or not profitable worldwide investment against what he's called their highly profitable Alaska investment.

Alaska once used separate accounting but went back to the so-called unitary system for fear of losing a court challenge. The state ultimately prevailed in the Alaska Supreme Court.