Representative Geran Tarr

Share on Facebook   JULY 20, 2017

Compromise on HB 111 – Ending Cash Payments to Oil
 

Dear Friends and Neighbors,

I’m pleased to write this after having worked hard to negotiate a compromise bill to end oil and gas cash subsidy payments.  When asked about these subsidies in a recent budget survey, 93% of respondents in our area said they needed to end.  I listened and worked with my colleagues, and as the Chair of the Conference Committee on HB 111, to make that a reality.

On July 15th the Legislature passed a compromise version of the oil and gas tax credits bill (HB111). The bill passed the House 33-6 and the Senate 18-0. After weeks of negotiations, this does represent a genuine compromise.

Elements of the oil tax credit compromise:

  • Ends cash payments for oil and gas tax credits retroactive to July 1, 2017, saving the state about $200 million per year
  • Companies can claim losses as tax deductions, but they only receive the deductions once a project starts producing oil
  • After 7 years, if oil is produced from an already producing field (and 10 years if from a new development) the value of deductions decreases 10% per year
  • Adds what’s called “Ringfencing” to the tax law so that if one company buys out another company that is operating at a loss, those losses can only be applied as tax deductions once the field in in production
  • Increases the interest rate on delinquent taxes
  • Creates an interim working group to continue examining the state’s oil tax system and make recommendations for changes during the second half of the 30th Alaska Legislature

While House Bill 111 did not accomplish the overhaul I think is necessary to have a more stable and reliable system we have a Working Group in place to continue evaluating our oil and gas tax policy  over the remaining time in the interim.  I’ll keep pushing for something that works better.  In the meantime, the bill passed was absolutely the right thing for the state and will save hundreds of millions of dollars.

Russian Jack Community Picnic!

Russian Jack ribbon cutting for new skate park
Russian Jack ribbon cutting for new skate park

Last month, we got together for the Airport Heights Picnic and the Mountain View Street Fair! It was so nice to see you! This weekend, we have the Russian Jack Community Picnic on Saturday, July 22, from 11 am – 2 pm, hosted by the Russian Jack Community Council.  Hope you’ll come out, grab a hot dog, get your face painted, and say hello to your local legislators! I’ll definitely be there, along with Senators Begich and Wielechowski, Representative Spohnholz, and Assemblymen Dunbar and Petersen! This year they’re encouraging everyone to think green, so be sure to remember to bring picnic blankets, plates and utensils too!

Hope you can make it this Saturday, July 22nd, from 11am-2pm at the Polar Bear Park!

Sincerely,

signed: Geran Tarr
Representative Geran Tarr

P.S. We’re back and set up in our Anchorage office at 1500 W. Benson, on the 4th floor in Room 422.  Please come by for a visit or get in touch and let us know where we can meet you! 

MY OFFICE

SESSION
State Capitol Bldg. Room 126
Juneau, AK 99801
P (907) 465-3424 F (907) 465-3793

INTERIM
1500 W Benson Blvd, Rm 229
Anchorage, AK 99503
P (907) 269-0144 F (907) 269-0148

Rep.Geran.Tarr@akleg.gov
http://www.repgerantarr.com/
http://www.facebook.com/geran.tarr

Thatcher Brouwer, Legislative Aide
+1 (907) 465-3424
Thatcher.Brouwer@akleg.gov

Magdalena Oliveros, Legislative Aide
+1 (907) 465-3424
Magdalena.Oliveros@akleg.gov

  MY DISTRICT

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550 West 7th Avenue, Suite 1700
Anchorage, AK 99501
T (907) 269-7450 F (907) 269-7461
EMAIL: Governor Bill Walker

STATE of ALASKA
http://alaska.gov/

State Info (907) 269-5111

 

  D.C. DELEGATION

Senator Dan Sullivan
510 L St, Ste 750
Anchorage, AK 99501
T (202) 224-3004
EMAIL: Sen. Dan Sullivan

Senator Lisa Murkowski
510 L Street, Suite 600
Anchorage, AK 99501
T (907) 271-3735 F (877) 857-0322
EMAIL: Sen. Lisa Murkowski

Congressman Don Young
4241 B Street, Suite 203
Anchorage, AK 99503
T (907) 271-5978 F (907) 271-5950
EMAIL: Rep. Don Young