Senate Finance Committee adopts working draft of SB 227 that narrows bill to oil-and-gas production tax and cuts rate

The Alaska Senate Finance Committee on May 14 adopted the committee substitute for Senate Bill 227 as its working document and set the bill aside for further consideration. Chair Senator Hoffman said the committee will rehear the bill on Monday, May 18 at 9 a.m. with invited testimony from members of the oil and gas industry.

Senator Stedman formally moved adoption of the substitute, saying, “I move that the finance committee adopt the committee substitute for senate bill 2 27 finance version o before the committee as our working document.” The motion was adopted without objection.

Liz Harpold, staff to Senator Olson, explained the changes in the substitute. “What this version of SB 2 27 does, from version G to version O, everything was removed except for oil and gas production tax,” Harpold said. “And to give a very high level synopsis of this, it reduces production tax rate from 35% to 17%, eliminates the gross value reduction, eliminates per barrel credits in sliding scale and GVR, and limits carry forward allowance to 40% of annual production tax liability.”

The committee did not take a roll-call vote on the substitute; Chair Senator Hoffman stated there was no objection and the CS was adopted as the committee’s working document and set aside for further consideration. The committee’s next scheduled hearing on SB 227 will include invited testimony from industry on May 18 at 9 a.m.

No fiscal estimates, projected revenue impacts or amendments were presented during the meeting record; the substitute’s detailed statutory language and any fiscal notes are not specified in the transcript.