Current through August 30, 2024
(a) For purposes of
AS
43.90.320, the amount for a calendar year of
a producer's gas production tax obligation that is calculated under the gas
production tax in effect at the start of the first binding open season held
under AS 43.90, and that applies to production taxes that are levied on North
Slope gas produced during the calendar year and transported as described in
15 AAC 90.210(a) (1) - (3) equals TE + TU + TI, as reduced by
the application of tax credits under (c) of this section, and
where
(1) TE equals
the amount of tax calculated under (b)(4) or (5) of this section, as
applicable;
(2) TU equals the
amount of tax under
AS
43.55.011(e) for North Slope
gas that is
(A) taxable under
AS
43.55.011(e);
(B) produced by the producer during the
calendar year;
(C) produced before
2022;
(D) transported as described
in 15 AAC 90.210(a) (1) - (3); and
(E) used in the state;
(3) TI equals the amount of tax under
AS
43.55.011(i) for North Slope
gas
(A) that is taxable under
AS
43.55.011(i);
(B) that is produced by the producer during
the calendar year;
(C) the
ownership or right to which constitutes a landowner's royalty; and
(D) that is transported as described in
15 AAC 90.210(a) (1) - (3).
(b) The calculations required to determine TE
under (a)(1) of this section are as follows:
(1) first, the tax levied by
AS
43.55.011(e) is calculated
for North Slope oil and North Slope gas produced by the producer during the
calendar year, other than gas produced before 2022 and used in the
state;
(2) second, the applicable
minimum amount of tax under
AS
43.55.011(f) is calculated
for North Slope oil and North Slope gas produced by the producer during the
calendar year;
(3) third, the
amounts calculated under (1) and (2) of this subsection are compared;
(4) if the minimum amount of tax calculated
under (2) of this subsection exceeds the amount calculated under (1) of this
subsection, the applicable percentage under
AS
43.55.011(f) is multiplied
by the greater of
(A) zero; or
(B) the gross value at the point of
production of the North Slope gas that
(i) is
taxable under
AS
43.55.011(e);
(ii) is produced by the producer during the
calendar year;
(iii) is transported
as described in
15 AAC 90.210(a) (1) - (3); and
(iv) is not gas produced before 2022 and used
in the state;
(5) if the minimum amount of tax calculated
under (2) of this subsection does not exceed the amount calculated under (1) of
this subsection, the amount calculated under (1) of this subsection is
multiplied by the fraction: GCG / (GCG + GOG + GVO), where
(A) GCG equals the greater of
(i) zero; or
(ii) the value described in (4)(B) of this
subsection;
(B) GOG
equals the gross value at the point of production of North Slope gas that
(i) is taxable under
AS
43.55.011(e);
(ii) is produced by the producer during the
calendar year;
(iii) is not
transported as described in
15 AAC 90.210(a) (1) - (3); and
(iv) is not gas produced before 2022 and used
in the state;
(C) GVO
equals the gross value at the point of production of North Slope oil that
(i) is taxable under
AS
43.55.011(e); and
(ii) is produced by the producer during the
calendar year.
(c) A tax credit available to be applied for
a calendar year against a tax levied under
AS
43.55.011 for North Slope oil and gas or for
North Slope gas must be allocated, proportional to the respective gross values
at the point of production of the gas or oil, between
(1) North Slope gas transported as described
in 15 AAC 90.210(a) (1) - (3); and
(2) other gas or oil produced from leases or
properties in the state against a tax levied under
AS
43.55.011 for which the tax credit is also
available to be applied.
(d) A calculation under this section is made
under the provisions of AS 43.55 as those provisions were in effect at the
start of the first binding open season held under AS 43.90.
(e) In this section, "North Slope oil" means
oil produced from a lease or property in the state north of 68 degrees North
latitude.
Authority:AS
43.90.300
AS 43.90.320
AS 43.90.330
AS
43.90.410
