House Dems warn against rush on energy tax bill

Posted: Wednesday, March 24, 2010

JUNEAU - Weeks after key senators warned that Alaska could lose billions in revenue if it didn't change its system of taxing oil and gas production together, House Democrats said the opposite may be true.

Democrats say the state could face financial ruin if lawmakers rush through changes before a natural gas pipeline open season later this year, when producers can reserve space in proposed pipelines.

Their conclusion follows a meeting with Alaska's attorney general.

Democrats say Alaska can separate oil and gas for taxation after the anticipated May 1 open season but the state risks locking itself into a gas tax rate if the oil and gas taxes are separated before the open season.

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