Oil Tax Bill moving too quickly?

 

A leader of Senate efforts to change Alaska's oil tax structure last year says the legislature doesn't need to rush on a tax bill this session.
 
Senator Bert Stedman says the risk in moving too quickly is a bill that won't be as fleshed–out or understood by the public or decision–makers.
 
He says the bill currently under consideration is moving fast.
 
The Sitka Republican is concerned the proposal would give too much cash back from legacy fields.
Early modeling indicated government take of roughly between 63 percent and 65 percent for prices from $100 to $160 a barrel for existing producers.
 
A consultant last year told lawmakers government's take of 70–75 percent for existing operations was ``reasonable,'' though maybe slightly high.
 
Stedman said he'd prefer take around 68 or 69 percent.
 
Members of the Interior Delegation sounded off Saturday about Stedman's comments.
 
SENATOR LYMAN HOFFMAN (D) BETHEL told Newscenter 11 "I agree. We shouldn't be rushing into a DNO. We make one wrong move and we could be devastated. We've had testimony with Senator Steadman when he was chairman and I was his co–chairman for the last four years and it is a very, very complicated issue. When you're talking billions of dollars on an annual basis it could swing really quick and we could end up in a situation where we would be facing an income tax. So I think that we need to be very, very careful."
 
REPRESENTATIVE SCOTT KAWASAKI (D) FAIRBANKS said  "Until we know what kind of money we're going to get, what kind of building, what kind of info structure we're going to get from any sort of tax cuts to dig oil, I think that we need to move cautiously."