Daily Archives: July 16, 2012

Alaska Oil Tax Policy| Ships Passing in the Night (from the July 2012 Alaska Business Monthly)

Recently, I agreed to write a bi-monthly column on oil & gas issues for the Alaska Business Monthly.  This is the first column, originally published in the July 2012 print edition and available online here.  

Alaska’s approach to oil and gas taxes has taken a number of twists and turns over the last several years. The latest twist may largely be the result of ships passing in the night.

Background

Shortly following her election in 2006, Gov. Sarah Palin proposed a set of changes to the then-existing tax structure. She termed the package “Alaska’s Clear and Equitable Share,” or “ACES.”ACES changed a previous package of modifications which had been enacted in 2006.

Although he supported ACES at the time it was passed, late in his campaign for his own term in 2010 Gov. Parnell began generally to talk about what he then termed as the need for “tweaks” in ACES. Following his election, Parnell proposed a set of changes, which was introduced in the Alaska House of Representatives and subsequently referred to as “HB 110.” Continue reading