Governor introduces gas line legislation

JUNEAU — Gov. Sean Parnell has introduced gas line legislation that would set a gross tax rate of 10.5 percent on gas.

The provision’s part of a larger bill meant to help advance a liquefied natural gas project.

The bill proposes moving from a net to gross tax.

Parnell, in his transmittal letter, said for gas produced after 2021, the tax levy would be 10.5 percent of annual gross value at the point of production. The bill also would allow certain leases to pay production taxes with gas.

Mike Pawlowski, a deputy revenue commissioner, called the 10.5 percent a starting point for discussions. It would put the state’s share of a project, considering royalties, at about 22 percent.

He said nothing says the rate could not be changed as the project progressed.

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