Alaska oil and gas taxation booklet 2017

Lisa murkowski in july voted against an obamacare repeal amid threats to block plans for more oil. The 2017 tax cut and jobs act also slashed the effective tax rate for corporations, and oil companies were among the biggest beneficiaries of the changes because of the ability to defer taxes. Understanding alaskas revenue t he revenue picture in alaska is strikingly different than in other states. Special session ends with compromise on oil and gas tax. Alaska house democrats introduce oiltax bill, sparking.

Alaska credit for prior year minimum tax see instructions 11 12. What percentage of the cost of gas in alaska comes from taxes and gas station profit. Oct 09, 2017 up to 60,000 barrels of light oil a day could fortify pipeline flow, state coffers and alaska job rolls. Alaska oil and gas laws can be found in title 31 and title 38 of alaska statutes. The book aims to be the first choice for the new starter in upstream oil and gas taxation. This includes both the juneau and anchorage offices and lobbies. After october 1, 2017 production from endicott, sag delta, eider, minke, and badami is also included in this category. Three days later, on april 6, 1955, governor frank heintzleman signed the bill into law without comment. Tax bill would open alaska wildlife refuge to drilling the republican tax bill includes a provision that would open up the arctic national wildlife refuge to oil exploration and drilling. Understanding alaskas budget understanding alaskas. We provide accurate and timely information to alaska taxpayers. History of oil and gas taxes in alaska four main sources of state of. Cochair tarr provided brief background information on.

The tax bill opens the arctic national wildlife refuge to drilling after nearly 40 years, congress will grant permission to extract oil and gas from the arctic national wildlife refuge. Department of commerce, community, and economic development. T he revenue picture in alaska is strikingly different than in other states. Bp prudhoe bay royalty trust 2017 tax information booklet. Federal income tax 35% top rate federal alternative minimum tax amt 20% federal withholding tax o dividends 30% o interest 30%. The current tax rate of 35% was set in 20 by senate bill 21 commonly known as the more alaska production act or mapa. Sep 01, 2016 prudhoe bay production includes production from prudhoe bay, midnight sun, aurora, polaris, borealis, orion, northstar, milne point, schrader bluff, sag river and ugnu.

Trencs watersedge combined reporting appears firmly rooted in multistate corporate franchise income tax law, but anomalies can be expected. Use this site to search case files for state and blm land. Parts of alaska wilderness open to oil and gas drilling with tax overhaul alaska sen. Annual industry projections for alaska, anchorage, the fairbanks area, and southeast alaska. Alaska residents to receive record payment from oil.

Late 2017 also saw new oil and gas exploration drilling in federal waters in the. Taxpayers must complete the dr 0021d, colorado oil and gas severance tax schedule, and attach it to the dr 0021 return. The oil and gas production tax legislation passed the full house on the same day it was introduced on a vote of 17 to 2. Since the completion of the trans alaska oil pipeline, petroleum revenues to the state of alaska have averaged over 85 percent. Alaska oil and gas association comments on the department of revenues 2019 spring revenue forecast 11062018 aoga comments to dor regarding the dors proposed technical corrections to 15 aac 55. Alaskas oil and gas production tax tax credits history. This publication has been written as a general investment and taxation tool. Strong end of 2017 for oil and gas on federal lands and. The amount legally required to be paid each year the statutory minimum appropriation to the oil and gas tax credit fund under a statutory formula set out in as 43. Feb 22, 2016 sponsors representatives gara, guttenberg, kito title an act bearing the short title of the fair oil share and heavy oil production incentive act.

The state of alaska imposes a production tax, under as 43. Fy 2016 and vetoed the entire appropriation for fy 2017. For example, alaska requires worldwide combined reporting, but only for oil and gas corporations. Some states have imposed taxes and fees on the extraction, production and sale of natural gas and oil. For first time, state reveals recipients of cash credits.

The current tax rate of 35 % was set in 20 by senate bill 21 commonly known as the more alaska production act or mapa. Hb111 supporting document alaska s oil and gas competitiveness report 2015 3. Oil and gas exploration, production, and pipeline transportation property taxes chapter 57. The tax division offices are closed to the public until further notice. Mar 18, 2017 with its oil production tax collecting less than the state provides in oil tax credits, alaska is. Corporate income tax oil and gas income 28% other income 28%. John butrovich, rfairbanks, said the bill was nothing more than a baseball bat, that would discourage oil and gas development in alaska. Except as otherwise provided under f, j, k, and o of this section.

From 20092014, several oil and gas production tax credits were offered. The 8th edition captures the latest tax and regulatory changes that have occurred in the oil and gas industry during the past two years. The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution marketing, and taxes. Oil production tax in alaska duke law scholarship duke university. It also aims to be the best introduction of international tax issues relating to upstream oil and gas, enabling the reader to analyse and understand new situations and circumstances, rather than an encyclopaedic reference of tax.

Jan 30, 2017 alaskas oil and gas taxation status report presentation to house resources committee ken alper, tax division director alaska department of revenue january 30, 2017. In the states 20 fiscal year, oil and gas revenues represented 92 percent of alaska s unrestricted revenue. The tax committee of the alaska oil and gas association provides a forum for and coordination of collective industry efforts to promote fair, practical, efficientlyadministered and equitablyapplied tax policies, laws, regulations, and ordinances affecting the oil and gas industry in alaska. Royalties are payable by upstream oil and gas companies under the terms set out in the mineral and petroleum resources royalty act. Alaskas oil production tax is broken anchorage daily news. Alaskas state budget at heart of oil tax debate local news. The state of alaskas fiscal circumstances updated 12017. Alaska hb111 2017 natural gas development legislature. Oil and gas production taxes and oil surcharge chapter 56. Mapa, however, was not the first major alaskan oil production tax. For most of alaskas history, both the state and local governments have derived a significant amount of. Alaska incentive credits claimed as refund from form 6300, line 35 12. Investment and taxation guide 9 foreword welcome to the 8 th edition of the pwc indonesia oil and gas in indonesia investment and taxation guide.

Search the division of oil and gas collection of maps and displays related to oil and gas activity in alaska. Alaska department of revenue tax division alaska oil. Title 15 revenue oil and gas production tax and oil department of law file number. Special session ends with compromise on oil and gas tax credits. Oil and gas taxation in the united states deloitte taxation and investment guides1 1. Click on the specific tax type you are interested in. Prudhoe bay oil field is a large oil field on alaska s north slope. Sep 06, 2018 this web document highlights state oil and gas severance tax laws. Liberty oil project bodes well for alaska anchorage daily news skip to main content. These severance taxes apply to materials severed from the ground and include the extraction or production of oil, gas and other natural resources. Alaska house democrats introduced legislation wednesday pushing for higher taxes and fewer subsidies for oil companies, and a fight broke out even before the bill got to.

The principal taxes applicable to companies in the oil and gas industry are currently as follows. Fund as the opportunity cost of north slope production tax credits, we find that the. The gop tax bill could forever alter alaskas indigenous. The alaska oil and gas association said in a tweet. In 2017, for the first time in twentyfour years, democrats were in a leadership role. Alaska department of revenue tax division oil and gas. The department of commerce, community, and economic development is working to understand the fast paced and everchanging effects of covid19 on alaska and our communities.

While we are charged with collecting state taxes and administering tax laws, we also regulate charitable gaming and provide revenue estimating and economic forecasting. Monthly production of oil, gas, and water from wells within alaska. Alaska is the only state in the union that is so dependent on one industry to fund its government services. Understanding alaskas revenue understanding alaskas budget. Jul 17, 2017 special session ends with compromise on oil and gas tax credits. Alaska oil and gas corporation net income tax return. Alaska oil and gas association recognizes historic milestone of moving 18 billion barrels of oil down the trans alaska pipeline. It is the largest oil field in north america, covering 2,543 acres 86,418 ha and originally containing approximately 25 billion barrels 4. We promote tax compliance through quality service and fair administration.

Mineral tax i 8% of gross value of oil and gas, less property tax credit of 3. The amount of recoverable oil in the field is more than double that of the next largest field in the united states by acreage the east texas oil field, while the. View and download alaska state parks trail guides, which include detailed maps for trail navigation. Be sure to carry the correct totals from the dr 0021d schedule to the dr 0021 return.

Oil and gas taxation in the united states deloitte. Natural gas alaska brings ambitious lng export project to ferc. Parts of alaska wilderness open to oil and gas drilling. The question of whether to drill for oil in the arctic national wildlife refuge anwr has been an ongoing political controversy in the united states since 1977. It is being mailed to all persons who appeared as unit holders on the trustees records at any time during 2017. On january, 2017, the regulations were adopted by the commissioner of revenue. We will make sure to walk you through each step of our simple and easy bonding process. Alaska has a lot of what other states wish they had more of oil and gas royalties and none of what other states wish they had less of personal income and state sales tax. A bill to provide a leasing program within the coastal plain, and for other purposes. A brief history lisa weissler revised march 23, 2019 4 the attacks on skinners proposal came fast and furious, both from fellow legislators and oil industry officials. The alaska department of revenues fall 2016 sources.

Liberty oil project bodes well for alaska anchorage daily news. Act 12 of the 2016 first extraordinary session extended the imposition of the franchise tax to additional types of entities. The tax cuts and jobs act, which the senate passed early saturday morning, will change federal law on a matter that has little to do with the tax code. Federal and alaska taxable income relating to your past or present ownership of units in bp. Initiative on gas pipeline development authority this bill would create the alaska natural gas development authority authority as a public corporation of the state. Motor fuel tax information by state updated september 2017. Jan 05, 2018 finally, the legislation establishes a royalty rate of 16. Congress is close to lifting a 40yearold ban on energy development in alaska s arctic national wildlife refuge, but drilling for oil in that frozen wilderness may still be years away. Robin brena on the status of the oil and gas tax regime in alaska. The alaska oil and gas association said in a tweet that the bill will have a. Alaska lawmakers set to end cash subsidies for oil companies. Final the effect of alaska north slope oil and gas tax credits page.

Our production tax is broken and no longer helps us realize our fair share as owners. Bill walker signs house bill 111 into law, cashable tax credits to oil and gas companies working in alaska will be a thing of the past. Many examination features in the oil and gas industry are common to commercial enterprises but the handbook will highlight those areas peculiar to the industry. The role of the oil and gas industry in alaskas economy prepared for. Includes the annual actuarial study and financial handbook, tax rates and the tax calculation process, and links to related information. As of 2017, republicans have attempted to allow drilling in anwr almost fifty times, finally being successful with the passage of the tax cuts and jobs act of 2017. Production tax 1% of the gross value for a 5year period from the date production begins for well, for which the initial permit issued by the oil and gas board is dated. This tax booklet is intended to provide information necessary for you to determine federal and alaska taxable income relating to your past or present ownership of units in bp prudhoe bay royalty trust the trust. Notice of mandatory electronic filing 1182017 press release refined fuel surcharge. Tax bill would open alaska wildlife refuge to drilling. The role of the oil and gas industry in alaskas economy.

An act establishing a program of public funding for campaigns for state elected offices, to be known as the alaska clean elections act, and amending the oil and gas production tax to levy and collect a surcharge on oil as a source of funding for that program. Annual report 2018 alaska department of revenue tax division. Our employees are still working and able to provide customer service over the phone. Starting with the 2017 franchise tax period, a limited liability company l. With that, alaska had its first oil and gas production. The alaska department of revenue has adopted changes to its oil and gas production tax regulations, 15 aac 05 and 15 aac 55, which were publicly noticed in september 2016. Alaska department of revenue tax division reports page. The authority would acquire and condition north slope natural gas, and construct a pipeline to transport the gas. The tax bill opens the arctic national wildlife refuge to. Unpacking house bill 111 published by wed, 19 jul 2017 21. Title 15 revenue oil and gas production tax and oil.