HB 411 Summary

• Reduces oil production tax rate from 35% to 25% effective July 1, 2018, while adding a progressive tax based on monthly production values exceeding $40 per BTU barrel.

• Establishes separate tax rates starting January 1, 2022: oil taxed at 25% plus progressive rates, while gas taxed at flat 13% of gross value at point of production.

• Modifies tax payment schedules and installment payment calculations for producers, with different rules for periods before/after July 1, 2018 and January 1, 2022.

• Changes production tax value calculations under AS 43.55.160(h) to create separate categories for oil based on geographic location and lease characteristics, effective January 1, 2022.

• Takes effect July 1, 2018, with transition provisions allowing continued application of prior tax rules to pre-effective date production.