Alaska's oil-tax income at lowest since pipeline's first days
The oil production tax that has long been Alaska’s sugar daddy has collapsed with the price of oil, to a low rarely seen in state history.
The oil production tax that has long been Alaska’s sugar daddy has collapsed with the price of oil, to a low rarely seen in state history. Adjusted for inflation, state revenue from the tax is on track to have its worst year since the early days of the trans-Alaska pipeline nearly four decades ago.
The hit is so bad the treasury is making a small fraction of what it did in 2014, or about $2.30 for every taxed barrel.
The troubling statistics are just two takeaways from Alaska's latest revenue forecast - and decades of revenue records -- in which the numbers paint a grim picture of the state's stark reversal in fortune as it faces a $3.5 billion deficit, Alaska Dispatch News reports.