Fairbanks, Alaska (AP) - A new Alaska group hopes to overhaul the state's oil and gas tax credit system through a ballot initiative called the Fair Share Act, a report said.
The group hopes to enact the proposal into law in 2020, The Fairbanks Daily News-Miner reported Tuesday.
The group submitted the initiative application to Republican Lt. Gov. Kevin Meyer, who has until Oct. 15 to approve or reject the application. If approved, the group would need to collect at least 28,501 signatures, or 10 percent of the number of voters in the last general election.
The group includes former Democratic state Sen. Joe Paskvan, a previous Senate Resources Committee chair.
Group member Robin Brena said the initiative would only apply to three of the state's large oil fields. Prudhoe Bay, Alpine and Kuparuk produced an average daily minimum of 40,000 barrels of oil in the last calendar year, she said.
The initiative would increase the gross minimum production tax for those fields from the current 4 percent to 10 percent. It would also increase the 10 percent minimum by 1 percent, up to a maximum of 15 percent, for each $5 per-barrel increase in the price of oil beginning at $50 per barrel.
The measure would additionally increase net production tax by eliminating the $8 per-barrel credit and adding an additional 15 percent tax on producers' profits beginning at $50 per barrel of profit.
The initiative would require publication of production tax returns for the fields.
"In order to be a fair share, it needs to be fair to the industry and it needs to be fair to Alaskans," Brena said. "Right now, it's not fair to Alaskans."