Alaska Oil Tax Study Criticizes Structure, Proposed Changes

An Alaska oil tax study criticizes the system’s structure, but also takes issue with proposed legislation that would make changes.

The Fairbanks Daily News-Miner reports the Alaska Legislature paid $32,250 for access to the independent study and five others by oil and gas consultant Pedro van Meurs.

The study is covered by copyright but Van Meurs allowed reporters to review it.

The study says the current tax system has shortcomings such as inadequate incentives for companies to develop fields with heavy oil. It says Alaska increased oil production taxes as Canada and Greenland lowered theirs.

But it strongly criticizes aspects of proposed revisions, such as a system of charging different rates in old and new fields, which is included in a bill advocated by Gov. Sean Parnell.