Fairclough: Raise tax rate for 25 percent stake

Published on NewsOK Modified: March 4, 2014 at 6:01 am •  Published: March 4, 2014

JUNEAU, Alaska (AP) — An Eagle River senator says she would like to see the tax rate in the gas line bill increased to give the state a full 25 percent stake in a liquefied natural gas project.

Sen. Anna Fairclough said during a Senate Finance Committee meeting Monday that she would like to see an analysis by the Legislature's consultants on how competitive Alaska's tax structure is.

The committee is considering a bill aimed at advancing the mega-project and plans to take public testimony Tuesday. Under the proposal, the state's equity stake would be determined by its royalty share and gas tax rate.

The state is mulling a stake of 20- to 25 percent. The currently proposed tax rate is 10.5 percent, which would put the state's overall share at about 22 percent.