Alaska Senate Passes Oil Tax Hike

0:00It's March 26, from your city to your ears. This is Anchorage News Today, powered by AI. I'm Cory with the story. The Alaska Senate has passed a measure to raise taxes on oil and gas production by closing a corporate income tax loophole. Lawmakers added it to a routine renewal of a state oil royalty deal with marathon petroleum. The change could bring in more than $100 million in new revenue each year for the state. This tax would apply the state's corporate rate of up to 9.4% on companies with net profits over $5 million annually, with oil prices surging due to the Iran War. State officials project big revenue gains ahead. Sponsors say it's the perfect time to act while prices are high and companies are profiting. Supporters like Senator Forrest Dunbar from Anchorage argue the state can't afford to keep the loophole open amid school closures and cuts to services, like troopers and firefighters. In his district alone, the Anchorage School Board faces a $90 million shortfall, forcing

1:03three elementary school shutdowns and staff. Reductions. Critics, including Senator Jesse Bjorkman from Soldatna, worry about rushing without studying impacts on the industry and energy supplies. The move builds on years of debates over Alaska's oil tax system, targeting firms like Hillcorp, the state's top producer on the North Slope. A related bill on Hillcorp sits stalled in committee, but this broader fix aims to keep more money in Alaska for schools, roads and dividends. Now the amended bill heads to the House for approval. If it passes, it could ease some of the state's budget pressures just as oil winds fill the sales.