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Smaller companies, AOGA weigh in on tax change

Published on NewsOK Modified: March 27, 2013 at 4:57 pm •  Published: March 27, 2013

JUNEAU, Alaska (AP) — Smaller oil companies and an industry trade group see good points to a bill that would overhaul Alaska's oil tax structure.

But they say it would set the base tax rate too high and have problems with the proposed tax credit changes.

The House Resources Committee was taking testimony Wednesday from some of the smaller companies exploring for or producing oil on the North Slope, plus the Alaska Oil and Gas Association.

The committee earlier heard from the North Slope's major players, who said SB21 would be an improvement over the existing system and make Alaska more competitive.

But they couldn't say what level of new investment the state might see, had concerns about the base rate and wanted clarity on what oil would qualify for a tax break.