SB 107 - Oil & Gas Production Tax Bill Summary

• Introduces a new "major oil field" tax for oil produced from fields north of 68 degrees North latitude that produce over 40,000 barrels per day, effective January 1, 2021, with a base 35% tax rate plus an additional 15% tax on production value exceeding $50 per barrel.

• Modifies tax credits and installment payment schedules for oil and gas producers, including changes to exploration tax credits, capital expenditure credits, and small producer credits under AS 43.55.011.

• Makes certain oil and gas production tax information public by allowing disclosure of producer return information related to the new major oil field tax under AS 43.05.230(m).

• Changes the gas tax structure to 13% of gross value at point of production for gas produced after January 1, 2022, and establishes minimum tax rates for major oil fields ranging from 10-15% based on monthly oil prices.

• Takes effect immediately with retroactive application to January 1, 2021, with a provision that unpaid installment payments from retroactivity do not accrue interest until after December 31, 2021.