Alaska tax structure subject of study

Commonwealth North, an Alaska organization with a mission to disseminate information about public policy issues in the state, is initiating a study into the structure of Alaska oil taxes.

“It is the responsibility of Alaskans to ensure the state establishes a fiscal and tax structure that does not inhibit growth,” wrote Jim Egan, Commonwealth North executive director, when announcing the new study on Nov. 24. “Commonwealth North will conduct a study to determine if and to what extent investment in Alaska’s oil resources is conducive under the current oil tax structure and what action may be taken to establish tax policy, amend law and reform regulations to re-incentivize investment and increase the competitiveness of Alaska relative to other oil basins.”

The objective is to provide insights into the tax situation for policy makers prior to the start of the Alaska legislative session at the beginning of 2011, Egan wrote. Commonwealth North anticipates posting some results from the study on its website while restricting access to much of the study data to the organization’s members.

In March the organization’s Board of Directors passed a resolution saying the Alaska Legislature and governor should establish policies, amend laws and reform regulations to make Alaska’s oil and gas basins more competitive with basins elsewhere; to create revenue and jobs in Alaska; and to sustain Alaska businesses.

—Alan Bailey