• Alaska, 25 percent-50 percent petroleum profits tax, depending on net value of oil and gas.
• Colorado, 2 percent-5 percent severance tax based on gross income.
• Kansas, 8 percent of gross value, less 3.67 percent property tax credit.
• Kentucky, 4.5 percent of gross value, less transportation expenses.
• North Dakota, 6.5 percent of gross value at well.
• Texas, 7.5 percent of market value.
• West Virginia, 5 percent of gross value.
Source: National Conference of State Legislatures/ AP
Comments (10)
Add commentso
It looks like Alaska is an unfriendly place for oil company's
It might seem so, dandy
But look a little more closely. Note that those other states are generally taxing gross value, or market value, while we're taxing profits. That allows the oil companies to write off all sorts of expenses before they turn a profit here.
Also note that in most of those states the oil and gas companies also pay royalties to the private land owners for the stuff they're extracting - typically 12.5% in the case of gas, not sure what it is for oil, but I think it's a lot higher. Not the case in Alaska with no private land.
The oil companies are making billions in profits every year off of our world-class hydrocarbon basin. They aren't going anywhere. But they will lie to our faces if it will gain them another billion or two.
The rest of the story
From what I can tell the numbers posted above in the Empire are from this article, would be nice if they would have posted the whole article for some perspective.
http://www.myfoxchicago.com/story/21644105/oil-and-gas-extraction-taxes-...
This is some more info, what the above fails to say, for example, is that N Dakota charges an oil and gas gross production tax as well as an oil extraction tax.
http://www.ncsl.org/issues-research/budget/state-energy-revenues-update....
Not to mention, N Dakota is having the same problem as Alaska, oil companies fighting the state's tax system. What a surprise.
http://bismarcktribune.com/bakken/oil-industry-opposes-north-dakota-hous...
off the top
is the difference between the tax rate in other states and Alaskan oil taxes. And as Lat stated there is the royalties off the top going to miner rights owners in places like ND where they relieve 12.5%.
Would you expect any information focused on lower oil tax in Alaska to provide full and complete disclosure? Well you might expect it but you will not get it.
I keep asking for a simple set of numbers. What was the gross value of the oil produced in Alaska and what was the total taxes received on that production. So far those numbers seem to be unavailable to the general public. For if we saw the numbers it would be very easy to determine the true tax rate being paid: taxes paid divided by gross revenues = tax rate.
Islander
Last year 206.7 million barrels of crude were pumped off the North Slope according to the DNR. The average 2012 price was about $110 per barrel. So that comes to a gross value of $22.7 billion.
Dept. of Revenue states that they took in $6.1 billion in oil taxes in 2012. So by my simplistic math, that comes to a 'take' of 27%.
I'm sure some accountant or employee of the Department or perhaps some oil industry shill on Parnell's staff can point out the errors in my logic, but 27% doesn't seem to be such an outrageous cut for our own oil, does it?
Very vague
This article is so vague its barely worth printing. You can't decipher anything from it.
Latitude58 Thanks for the
Latitude58 Thanks for the numbers. Sure can't ask a journalist to do anything but a raise taxes piece(they get money from the state).
If you take those numbers one step further 6,100,000,000 divided by population 731,449 I get around $8339 a citizen. It's a far cry from $878. mmmmmmmmmmmm
Latitude
you are right on but those figures won't fly against the rhetoric. Norway taxes at 78%, wonder what the take would have been for Alaska then?
The answer...
Is an Alaskan state-owned and operated oil company. Do everything in house, profits all go directly to the treasury, focus on TRUE Alaskan hire. Make UAF the leading petroleum engineering school in the world.
No having to put up with BP, Conoco, Shell, or anyone but ourselves.
At least, that's my dream.
Do not worry.....
Do not worry about the oil companies making money in Alaska. Don't GIVE them anything; they'll find a way to TAKE what they want.
The current attempt to give away Alaska's wealth is just sickening to those who remember the long hard battles to get us where we are.
Leave it alone. And....who CARES what other states charge. Remember, the oil guys walk all over COUNTRIES so messing with some little state is nothing to them.