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Oil Tax Reform A Priority For New Senate Majority

By Abby Hancock

Channel 2 News

6:08 PM AKST, November 7, 2012

ANCHORAGE, Alaska

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The issue of oil tax reform will likely be a priority for Alaska's newly formed state Senate leadership under a GOP majority -- a hot topic during the last legislative session, when a plan proposed by Gov. Sean Parnell was rejected by the former bipartisan coalition.

The upcoming session could play out very differently after the Senate's makeover, with majority members telling the media Wednesday that tax reform in cooperation with Parnell was a major item on their agenda.

That's welcome news for the Make Alaska Competitive Coalition, which has pushed this year for "meaningful" oil tax reform.

"I absolutely believe there will be legislation passed this year," said MACC spokesperson Mark Hamilton.

Hamilton says an oil tax reform plan that passes will be a victory, no matter who brings it to the table.

"This is probably a necessary step toward getting it passed, but it certainly doesn't constitute the victory," said Hamilton.

Tuesday's Senate power shift was disappointing for some including David Gottstein, co-founder of Backbone, a group that formed about 12 years ago to provide input on how Alaska's resources are managed and worked alongside the coalition. Gottstein said he is hopeful that there will still be a spirit of compromise among the reshaped Senate.

"I'm hoping that with the remake of the Senate and the House that we can reach some kind of compromise that'll move us forward, but not in a way that puts the state's financial risk in great peril," Gottstein said.

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