AK SB106

Establishes a 9.4 percent tax on qualified taxable income exceeding $4,000,000 for entities involved in oil and gas production or pipeline transportation in Alaska.

Applies to sole proprietorships, partnerships, and entities that have elected to file federal returns under Internal Revenue Code sections 1361-1379, but excludes corporations already paying tax under AS 43.20.011.

Allows the Department of Revenue to aggregate qualified taxable income from two or more entities if income would reasonably be attributed to a single entity to prevent tax avoidance.

Defines "qualified taxable income" as income from oil or gas production from state leases or properties, or from pipeline transportation of oil or gas within the state.

Takes effect July 1, 2021, with the Department of Revenue authorized to adopt implementing regulations no earlier than July 1, 2021.