Referendum costs estimated at up to $2.5M

The state estimates it could cost up to $2.5 million to implement a repeal of Alaska’s recently approved oil tax structure.

The state is required to provide cost estimates for implementing proposed initiatives or referenda.

Lt. Gov. Mead Treadwell has certified a proposal that would repeal the tax overhaul recently approved by lawmakers. A fiscal analysis indicated the overhaul could cost the state up to $4.6 billion through 2019. That assumes a continued net decline in production and prices between $109 and $118 a barrel.

The overhaul is aimed at boosting production. Most of its provisions take effect Jan. 1.

The state says its estimates don’t include litigation expenses or a potential revenue impact from changing tax structures.

The referendum could appear on next year’s ballot if organizers are successful.

—Associated Press