HB 111 has passed. Now let’s focus on refilling the pipeline.
It’s Done – a compromise bill on HB 111, the Oil Tax Policy passed both the House and Senate. The final version eliminated cashable credits to oil companies, something the Legislature, the Governor and the public understand Alaska can no longer afford. It made a few other changes as well in an effort to compromise, such as limiting use of tax deductions.
Although it takes more than the fair share of revenue from the oil industry, it was time to put the compromise to rest and let the oil industry move forward with a level of certainty. Stability is the crucial element for a positive investment climate in Alaska. The passage of HB 111 marks the seventh time in the last 12 years that Alaska has increased taxes and government take on the oil industry.
Enough is enough. We must stop threatening the oil industry with further increases and unstable tax policies every Legislative session. If we don’t, we will suffer the obvious consequences: less investment, fewer jobs, less oil through the pipeline and a worsening economy.
Compromise has been reached. Now it’s time to move forward and work on ideas and opportunities to increase investment and production in Alaska’s number one resource.
Investment Requires Stability
Dear KEEP Supporter,
The KEEP Alaska Competitive Coalition, five thousand members strong, is a broad-based group of Native corporations, businesses, unions and individual Alaskans who share one common objective: We care deeply about our state and its economic future.
The oil industry pays for about 70 percent of Alaska’s government services. Oil has funded our schools, roads, airports and public safety. Oil strongly supports our charities and has created about one-third of Alaska’s jobs. Oil has funded Alaska’s $60 billion permanent fund and has allowed Alaskans the luxury of not having to pay state income or sales taxes.
But times have changed. It’s been a great ride, but it’s not sustainable. Alaska is in a recession due to low oil prices and an unsustainable fiscal situation that discourages investment.
After months of stalemate, the legislature once again changed the state’s oil tax system, the seventh change in 12 years. But that’s not enough for some legislators. A legislative working group on oil taxes will convene later this year to review the state’s oil tax system.
KEEP strongly recommends this working group make no further changes to Alaska’s oil tax policy. We cannot continue to threaten the oil industry with unstable tax policies and expect further investment from them.
This is where KEEP members can make a difference. Please remind your representatives in Juneau to not kill our resource industries with yet another tax increase for the industry that is the economic foundation of our state.
Once again, thank you for your support of the KEEP Alaska Competitive Coalition. We look forward to working with you to ensure Alaska will be open for business for years to come.
Keep Alaska Competitive
Keep Alaska Competitive
KEEP Alaska Competitive is a 501(c)(6) organization composed of individual Alaskans, Alaska Native organizations, businesses and labor groups who care deeply about our long-term economic future. We do not take contributions from oil producers.
Stable Tax Policies and a Balanced Fiscal Plan are the Foundation for a Strong Alaska
Alaska is in a recession due to low oil prices and declining production.
- Alaska has an approximately $3 billion deficit
- Reserve accounts are almost drained
We have the ability to fix our fiscal problems.
- Don’t destroy our resource industries with increased taxes and unstable tax policies
- Continue cutting cost of government
- Restructure the Permanent Fund
- Add new revenues, if necessary