Current through August 30, 2024
(a) The sales
factor of a taxpayer subject to
AS
43.20.144 is a fraction
(1) the numerator of which is the sum of the
following for the tax period:
(A) the tariffs
allowed and received by or for the taxpayer for transporting oil or gas by
pipeline in this state, regardless of whether the tariffs are paid by third
parties or by entities within the taxpayer's unitary business; and
(B) the total sales of the taxpayer's unitary
business in this state determined in accordance with the Multistate Tax Compact
(AS 43.19), but excluding those sales already included in the tariffs described
in (A) of this paragraph; and
(2) the denominator of which is the sum of
the following for the tax period:
(A) the
tariffs allowed and received by or for the taxpayer's unitary business for
transporting oil or gas by pipeline everywhere, regardless of whether the
tariffs are paid by third parties or by entities within the taxpayer's unitary
business; and
(B) the total sales
of the taxpayer's unitary business everywhere, determined in accordance with
the Multistate Tax Compact (AS 43.19), but excluding those sales already
included in the tariffs described in (A) of this paragraph.
(b) The property factor
of a taxpayer subject to
AS
43.20.144 is a fraction
(1) the numerator of which is the sum of the
following for the tax period:
(A) the average
value, determined under the Multistate Tax Compact (AS 43.19) of the taxpayer's
real and tangible personal property owned or rented in the taxpayer's unitary
business and used in this state during the tax period; and
(B) the average amount of cumulative
intangible drilling and development costs capitalized or expensed for federal
income tax purposes under Internal revenue Code section 263(c) (26 U.S.C.
263(c)), for the taxpayer's
producing oil and gas wells in this state; and
(2) the denominator of which is the sum of
the following for the tax period:
(A) the
average value, determined under the Multistate Tax Compact (AS 43.19) of the
real and tangible personal property everywhere owned or rented and used by the
taxpayer's unitary business during the tax period; and
(B) the average amount of cumulative
intangible drilling and development costs capitalized or expensed for federal
income tax purposes under Internal Revenue Code section 263(c) (26 U.S.C.
263(c)), for the producing
oil and gas wells everywhere of the taxpayer's unitary business.
(c) The extraction
factor of a taxpayer is a fraction
(1) the
numerator of which is the sum of the following for the tax period:
(A) the number of barrels of the taxpayer's
oil (net of royalty to an unrelated party) produced from or allocated to leases
or properties of the taxpayer in this state; and
(B) one-sixth the number of Mcf of the
taxpayer's gas (net of royalty to an unrelated party) produced from or
allocated to leases or properties of the taxpayer in this state, excluding
reinjected gas and gas consumed for production operations for the lease or
property from which it is recovered; and
(2) the denominator of which is the sum of
the following for the tax period:
(A) the
number of barrels of oil of the taxpayer's unitary business (net of royalty to
an unrelated party) produced from or allocated to leases or properties of the
taxpayer's unitary business everywhere; and
(B) one-sixth of the number of Mcf of gas of
the taxpayer's unitary business (net of royalty to an unrelated party) produced
from or allocated to leases or properties of the taxpayer's unitary business
everywhere, excluding reinjected gas and gas consumed for production operations
for the lease or property from which it is recovered.
(d) The factors may not include
intercompany income and expenses, except the tariffs allowed under
AS
43.20.144(d).
In 2012 the revisor of statutes, acting under
AS
01.05.031, renumbered former AS 43.20.072 as
AS
43.20.144. As of Register 204 (January 2013),
the regulations attorney made conforming technical revisions under
AS
44.62.125(b)(6), to
15 AAC 20.500, so that
cross-references to former AS 43.20.072 now refer to the renumbered statute,
AS
43.20.144. In addition, the regulations
attorney made a conforming technical revision to the authority citation that
follows 15 AAC 20.500, so that the
citation to former AS 43.20.072 now refers to the renumbered statute,
AS
43.20.144.
Authority:AS
43.05.180
AS 43.19.010
AS 43.20.144
Art. IV, § 18,
Ak Const.
