Alaska Governor Releases Draft ACES Bill

October 2, 2007, Anchorage, Alaska - Alaska Governor Sarah Palin yesterday released to members of the Legislature the draft bill that would replace the current Petroleum Profits Tax with a new production tax – Alaska’s Clear and Equitable Share, or ACES. This release, 17 days before the beginning of the legislative special session, will allow additional time for the public and members of the Legislature to review the bill prior to the start of the special session. The final bill will be introduced in the state House and Senate on October 18, the first day of the special session. During the next two weeks, the Administration plans to hold town hall meetings to explain the plan and work with the Legislature on committee hearings.

The draft bill codifies the principles set out in the Governor’s September 4, 2007, ACES announcement. As promised, the draft bill provides a more transparent tax system and increases public confidence by improving the state’s audit function, providing for forward-looking cost data from producers and economic information sharing between the state departments of Revenue and Natural Resources and the public. The bill aims to clearly establish the value of oil produced in Alaska and how the state and producers of that oil will share that value. There are a variety of improvements to the State’s authorities to protect Alaskans’ interests. Among other changes, the ACES plan removes the deduction for producers who fail to maintain pipelines and other infrastructure.

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The draft bill is available at http://www.gov.state.ak.us/aces/ or you may call the Department of Revenue to have a paper copy mailed to you at (907) 465-2301.

Source: Alaska Governor