SB 129 Summary

• Establishes a new tax on oil produced from major oil fields (north of 68 degrees North latitude producing over 40,000 barrels per day) at 35% of production tax value plus an additional 15% tax on monthly values exceeding $50 per barrel, with monthly minimum tax rates ranging from 10-15% based on oil prices.

• Makes oil production tax return information public through amendments to confidentiality provisions in AS 43.05.230(m), requiring disclosure of producer return data for oil taxes assessed under the new major oil field tax.

• Modifies payment schedules and installment calculations for oil and gas producers, creating separate tax treatments for production on and after January 1, 2021, including new categories for major oil fields and adjusted tax credit applications.

• Restricts application of tax credits and capital expenditure allowances to prevent their use against the new major oil field tax under AS 43.55.011(s), while allowing credits against other production tax liabilities.

• Takes effect January 1, 2021, and includes provisions for Department of Revenue regulations on calculating gross value at point of production and allocating costs for major oil fields.