AK SB305

Establishes separate tax rates for oil and gas production, with rates increasing when average monthly production tax values exceed $30 per BTU equivalent barrel, using tiered calculations with a 50 percent maximum tax rate

Creates a new tax subsection (p) for gas produced outside the Cook Inlet sedimentary basin and not used in the state, calculated separately from other gas and oil under the same threshold and rate structure

Modifies lease expenditure deductions by allowing allocation of pre-production exploration costs to specific oil and gas categories based on geographic areas (north of 68 degrees North latitude, Cook Inlet basin, or outside Cook Inlet basin)

Allows the legislature to appropriate 20 percent of oil and gas production tax revenue to the community revenue sharing fund, capped at $60 million or an amount that brings the fund balance to $180 million

Applies retroactively to January 1, 2010, with underpayments due by the first installment payment after the effective date and interest accruing only after that payment is due