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Oil Industry’s Taxes Create Odd
Wedge for Alaskan Voters

New York Times, by Kirk Johnson

Original Article

Posted By:MissMolly, 8/18/2014 8:15:14 AM

ANCHORAGE — Many Alaskans chart state history along a timeline of before oil and after, so crucial were those first big strikes in the late 1960s in making the state what it is today. Now a proposal to shake up the way oil companies are taxed — headed for a vote Tuesday in a statewide referendum — has stirred a passionate public debate. At stake is the fate of major tax breaks and incentives for the oil industry, part of a system that was pushed through the Republican-controlled Legislature last year by Gov. Sean Parnell, who billed it as a

      


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Reply 1 - Posted by: mws50, 8/18/2014 9:54:31 AM     (No. 9970230)

As usual, our clueless media fools got it wrong. The "tax" is not a tax. It is royalties on the oil taken from the state lands. This is common as dirt, and the average land owner in Texas gets 22-25% of the oil recovered from their property. Alaska residents get a chunk of the royalties from the oil recovered from the State lands, along with a part of those royalties funding their state government.

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Reply 2 - Posted by: Coy860, 8/18/2014 10:35:28 AM     (No. 9970301)

Plus every Alaskan, gets a hefty check once a year for oil royalties.

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Reply 3 - Posted by: LadyVet, 8/19/2014 9:25:57 AM     (No. 9971582)

#1, It has been my experience that the standard royalty to the landowner is 1/8 or 12.5%. If there is a group of landowners,say 5 siblings who inherited property, those five split the 1/8th share. That applies to private deals. The feds always try for more.

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Reply 4 - Posted by: mws50, 8/20/2014 8:57:02 AM     (No. 9973225)

In South Texas, the going rate is 22% for the 1 mile deep stuff and 25% for the 2+ mile deep stuff (Eagle Ford shale). And there are rumors of 3 mile deep oil that is substantially more than the Eagle Ford field.

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