SB 167 Summary

• Establishes a tiered production tax rate structure for oil and gas: 0.4% per dollar above $30 per barrel (or BTU equivalent) up to $92.50, then 25% plus 0.1% per dollar above $92.50, capped at 50% total tax rate.

• Creates separate tax treatment for different gas categories: gas from Cook Inlet sedimentary basin, gas outside Cook Inlet used in-state, and gas outside Cook Inlet not used in-state, each with distinct tax calculations.

• Amends community revenue sharing fund to allocate 20% of oil and gas production tax revenues, with maximum annual appropriation of $60 million or $180 million fund balance limit.

• Modifies lease expenditure deductions to allow allocation of exploration and pre-production development costs across oil and gas production by geographic area, with regulations to be adopted by the Department of Revenue.

• Makes sections 2-5 and 7-8 retroactive to January 1, 2012, with transition provisions allowing extended payment deadlines for any underpayments resulting from retroactive application.