AK SB188

Establishes the "Protect the Permanent Fund Dividend Act" to ensure permanent fund dividends are protected when earnings reserve account funds are withdrawn for state budget purposes.

Creates a new progressive surcharge tax on oil production when oil prices exceed $20 per barrel, applying a rate of 0.3 percent multiplied by the difference between the average monthly production tax value and $20.

Allows the legislature to appropriate revenues collected from the new surcharge tax to replenish the earnings reserve account in amounts equal to funds previously withdrawn for non-dividend purposes.

The surcharge tax applies only in calendar years following fiscal years when earnings reserve account appropriations occur, and only to oil from mature fields (400 million+ cumulative barrels produced with average daily production exceeding 20,000 barrels).

Increases the base oil production tax rate from 35 percent to 35 percent plus the monthly surcharge amount for production occurring on or after January 1, 2022.