(a) An annual tax
of 20 mills is levied each tax year beginning January 1, 1974, on the full and
true value of taxable property taxable under this chapter.Chapter 43.56.
OIL AND GAS EXPLORATION, PRODUCTION AND PIPELINE TRANSPORTATION PROPERTY TAXES
Sec. 43.56.010. Levy of tax.
(a) An annual tax
of 20 mills is levied each tax year beginning January 1, 1974, on the full and
true value of taxable property taxable under this chapter.
(b) A municipality
may levy and collect a tax under
(c) If the total
value of assessed property of a municipality taxing under AS
29.45.080 (c) exceeds the product of 225 percent of the average per capita
assessed full and true value of property in the state, to be determined by the
department and reported to each municipality by January 15 of each year,
multiplied by the number of residents of the taxing municipality, the department
shall designate the portion of the tax base against which the local tax may be
applied.
(d) A tax paid to a
municipality under AS
29.45.080 or former AS 29.53.045 on or before June 30 of the tax year shall
be credited against the tax levied under (a) of this section for that tax year.
If, however, a tax is not paid to a municipality until after June 30 of the
taxable year, the department upon application shall refund to the taxpayer the
amount of tax paid to the municipality under AS
29.45.080 or former AS
29.53.045 . The credit or refund of taxes paid to a municipality may not
exceed the total amount of tax levied by the department upon the taxpayer for
the tax year, under (a) of this section.
Sec. 43.56.018. Oil or gas property education credit.
(a) For cash
contributions accepted for direct instruction, research, and educational support
purposes, including library and museum acquisitions, and contributions to
endowment, by an Alaska university foundation or by a nonprofit, public or
private, Alaska two-year or four-year college accredited by a regional
accreditation association, the owner of property taxable under this chapter is
allowed as a credit against the tax due under this chapter
(1) 50 percent of
contributions of not more than $100,000; and
(2) 100 percent of
the next $100,000 of contributions.
(b) [Repealed, Sec.
12 ch 71 SLA 1991].
(c) Each public
college and university shall include in its annual operating budget request
contributions received and how the contributions were used.
(d) A contribution
claimed as a credit under this section may not
(1) be claimed as a
credit under another provision of this title; and
(2) when combined
with credits taken during the taxpayer's tax year under
(e) The department
may, by regulation, establish procedures by which a taxpayer may allocate a pro
rata share of a credit claimed under this section against monthly tax payments
made during the tax year.
Sec. 43.56.020. Exemptions.
(a) The following
are exempt from local taxes levied or authorized under
(1) property rights
attached to or inherent in the right to explore for or produce oil or gas;
(2) oil or gas
leases or properties, whether producing or not;
(3) oil or gas in
place;
(4) oil or gas
produced or extracted in the state;
(5) the value of
intangible drilling expenses and exploration expenses;
(6) an interest in
property described in AS
43.55.017 (a).
(b) There is exempt
from state taxes levied or authorized under AS 43.56.010(a), before the
construction commencement date, property that is committed by contract or other
agreement for use in this state primarily for the production or pipeline
transportation of gas or unrefined oil, or in the operation or maintenance of
facilities for the production or pipeline transportation of gas or unrefined
oil.
(c) In (a) (2) of
this section, "properties" means mineral interests in oil and gas and
working interests, royalty interests, and overriding royalty interests in oil
and gas leases.
Sec. 43.56.030. In place of other taxes.
Except for those taxes imposed under AS 43.55, the taxes levied or authorized under
AS 43.56.010 (b) are in place of(1) all other ad
valorem taxes or other taxes imposed by a municipality on property subject to
tax under this chapter or exempted from taxation by AS
43.56.020 ; and
(2) all other taxes
imposed by a municipality on or with respect to the property subject to tax
under this chapter or exempted from taxation by AS
43.56.020 , including, but not limited to,
(A) taxes on the
retail sale or use of the property except for the retail sales tax on the first
$1,000 of each sale;
(B) taxes on the
sale or use of gas or unrefined oil;
(C) taxes on the
sale or use of services used in or associated with the property or in its
maintenance or operation except for the sales tax on the first $1,000 of each
sale;
(D) taxes on or
measured by gross or net income from the property, including income from the
exploration for, production of, or pipeline transportation of gas or unrefined
oil or property; and
(E) any license,
excise, fee, charge or other tax on or pertaining to the property or services.
Sec. 43.56.040. State Assessment Review Board.
The State Assessment Review Board is created within the department. The board consists of five persons appointed by the governor to serve at the pleasure of the governor, each of whom must be knowledgeable of assessment procedures. Each board member is subject to confirmation by a majority of the members of the legislature in joint session.
Sec. 43.56.050. Per diem and expenses.
Members of the board shall receive per diem and expenses authorized by law for boards and commissions.
Sec. 43.56.060. Assessment.
(a) The department
shall assess property for the tax levied under AS 43.56.010(b) and
(b) The department
shall assess property for the taxes levied under AS 43.56.010(a) at its full and
true value as of January 1 of the assessment year except that in the case of
taxable property used or committed by contract or other agreement for the
pipeline transportation of gas or unrefined oil or for the production of gas or
unrefined oil to be transported by that pipeline, the first assessment date
shall be the construction commencement date. If the construction commencement
date is used as the assessment date, the tax payable shall be prorated on the
basis of the assessment year remaining.
(c) The full and
true value of taxable property used or committed by contract or other agreement
for use in the exploration for gas or unrefined oil, or in the operation or
maintenance of facilities for the exploration for gas or unrefined oil, is the
estimated price that the property would bring in an open market and under the
then prevailing market conditions in a sale between a willing seller and a
willing buyer both conversant with the property and with prevailing general
price levels.
(d) The full and
true value of taxable property used or committed by contract or other agreement
for the production of gas or unrefined oil or in the operation or maintenance of
facilities for the production of gas or unrefined oil is:
(1) on the
construction commencement date the actual cost incurred or accrued with respect
to the property as of the date of assessment;
(2) determined on
each January 1 thereafter on the basis of replacement cost less depreciation
based on the economic life of proven reserves.
(e) The full and
true value of taxable property used or committed by contract or other agreement
for pipeline transportation of gas or unrefined oil or in the operation or
maintenance of facilities for the pipeline transportation of gas or unrefined
oil is:
(1) on the
construction commencement date and until January 1 following the date the
pipeline begins to transport gas or unrefined oil, the actual cost incurred or
accrued with respect to the property as of the date of assessment;
(2) determined on
each January 1 thereafter with due regard to the economic value of the property
based on the estimated life of the proven reserves of gas or unrefined oil then
technically, economically and legally deliverable into the transportation
facility; however, if the proven reserves of gas or unrefined oil then
technically, economically and legally deliverable indicate an economic life
materially shorter than the estimated physical life of the transportation
facility, the full and true value is the actual cost reduced by an annual
allowance for depreciation on a straight line basis over an economic life based
on the actual elapsed life from the commencement of full operation to the date
of assessment plus the estimated remaining life of the proven reserves of gas
and unrefined oil then technically, economically and legally deliverable into
the transportation facility as of the date of the assessment;
(3) on the
assessment date next following inability to use or construct all or a
substantial part of the facility for a period of 90 or more consecutive days
because of natural disaster or legal prohibition, or other events beyond the
control of a person having ownership or control of the property, adjusted to
take into account any diminution in value.
(f) For purposes of
this section, "actual cost" and "replacement cost" do not
include interest capitalized before or during the period of construction nor the
value of intangible drilling expenses. In the case of taxable property under
construction, "actual cost" for purposes of this section means the
costs incurred or accrued with respect to the property as of the date of
assessment.
(g) The department
may enter into agreements with a municipality for the cooperative or joint
administration of the assessing authority conferred on the department by this
section.
Sec. 43.56.070. Returns.
(a) The department
may require by notice every person having ownership or control of an interest in
property taxable under this chapter to submit a return in the form prescribed by
the department, based on property values existing on January 1 of each year,
except as otherwise provided in this chapter.
(b) The department
by written notice may require a person to provide additional information within
30 days of the notice.
Sec. 43.56.080. Investigation.
(a) The department
may make an investigation of property on which a return has been filed or of
taxable property upon which no return has been filed. In either case, the
department may make its own valuation of the taxable property, which is prima
facie evidence of full and true value.
(b) An employee or
agent of the department may enter any premise necessary for the investigation
during reasonable hours and may examine property and appropriate records. The
owner of the taxable property upon request shall furnish to the employee or
agent of the department reasonable assistance required for the investigation. If
refused entry, the department may seek a court order to compel entry.
(c) For the purpose
of the investigation the owner of the taxable property or a representative of
the owner may be required to appear for examination under oath by the
department.
Sec. 43.56.090. Assessment roll.
The department shall prepare annually the assessment roll for taxation under this chapter. The roll must contain:
(1) a description
of all taxable property;
(2) the assessed
value of all taxable property;
(3) the names and
addresses of persons owning property subject to assessment and taxation.
Sec. 43.56.100. Assessment notice.
(a) On or before
March 1 of each year, the department shall send to every owner of taxable
property named in the assessment roll a notice of assessment, showing the
assessed value of the property. Notice of assessment is effective on the date of
mailing.
(b) The department
shall send to a municipality a copy of the notice of assessment on any taxable
property that is assessed under the provisions of this chapter and that is
located in the municipality and on which a tax is authorized under
Sec. 43.56.110. Appeal to the department.
(a) An owner of
taxable property or a municipality receiving an assessment notice may object to
the assessment by advising the department in writing of the objections to the
assessment within 20 days of the effective date of the notice.
(b) The department
shall provide by regulation for notices of appeals to interested persons and
municipalities.
(c) Following an
objection the department may adjust the assessment and the assessment roll. An
adjustment based on an objection from an owner of taxable property or a
municipality shall be made within 30 days of the effective date of the notice of
assessment.
Sec. 43.56.120. Appeal to the board.
(a) After a ruling
by the department on an appeal made under AS 43.56.110, the owner or a
municipality may further appeal to the board. The appeal must be filed in
writing within 50 days of the effective date of the notice of assessment.
(b) The board shall
provide by regulation for notices of appeals to interested persons and
municipalities.
Sec. 43.56.130. Hearings of the board.
(a) The board shall
hear appeals filed under
(b) A majority of
the board constitutes a quorum required to transact business.
(c) The board shall
provide by regulation for notices of hearings to interested persons and
municipalities.
(d) If an appellant
fails to appear at the hearing, the board may proceed with the hearing in the
absence of the appellant.
(e) The appellant
bears the burden of proof at the hearing.
(f) The only
grounds for adjustment of assessed value is proof of unequal, excessive or
improper valuation or valuation not determined in accordance with the standards
set out in this chapter, based on facts stated in a written appeal timely filed
or proved at the hearing.
(g) The board shall
certify its determinations to the department within seven days of the hearing.
(h) [Repealed, Sec.
5 ch 107 SLA 1976].
(i) An owner or
municipality may appeal to the superior court for, and is entitled to, trial de
novo of the board's action.
Sec. 43.56.135. Certification.
No later than June 1 of each year, the department shall certify the final assessment roll and mail to the owner of the taxable property or an authorized agent a statement of the amount of tax due.
Sec. 43.56.140. Supplementary assessment rolls.
The department shall include property omitted from the assessment roll on a supplementary roll, using the procedures set out in this chapter for the original roll.
Sec. 43.56.150. Collection and deposit.
(a) The tax levied
by
(b) The department
may provide for voluntary prepayment and for payment by installments.
(c) The tax levied
under AS
43.56.010 (a), interest and penalties collected with respect to this levy
shall be deposited in the general fund.
Sec. 43.56.160. Interest and penalty.
When the tax levied by
AS 43.56.010 (a) becomes delinquent, a penalty of 10 per cent shall be added. Interest on the delinquent taxes, exclusive of penalty, shall be assessed at a rate of eight per cent a year.Sec. 43.56.170. Lien for tax. [Repealed, Sec. 4 ch 84 SLA 1976. For current law, see
AS 43.10.035 ].Repealed or
Renumbered
Sec. 43.56.180. Remedy.
The remedy of distraint of property set out in
AS 43.20.270 applies to the tax levied by AS
43.56.010 
(a).
However, only property subject to the tax may be distrained.
Sec. 43.56.190. Penalties. [Repealed, Sec. 46 ch 113 SLA 1980. For current law, see
AS 43.05.290 ].Repealed or
Renumbered
Sec. 43.56.200. Regulations.
The board and the department may adopt regulations under the Administrative Procedure Act (AS 44.62) as appropriate to carry out their respective duties under this chapter.
Sec. 43.56.210. Definitions.
In this chapter
(1)
"board" means State Assessment Review Board;
(2)
"construction commencement date" means the earlier of April 1, 1974 or
the date the following occur:
(A) there has been
issued to the owner or an agent of the owner right-of-way permits, leases, and
title and other rights in land, and other approvals, permits, licenses, and
certificates, by federal, state and local agencies that a reasonable and prudent
person would consider adequate to commence construction of the facilities in the
expectation that all other approvals, permits, licenses, and certificates
necessary for the completion of facilities will be obtained;
(B) all approvals,
permits, licenses and certificates are in full force and effect, unrevoked and
without any modification that might jeopardize the completion or continued
construction of the facilities; and
(C) no order,
judgment, decree, determination or award of a federal, state, or local court or
administrative or regulatory agency enjoining, either temporarily or
permanently, the construction or the continuation of construction of the
facilities is in effect;
(3) [Repealed, Sec.
38 ch 168 SLA 1990].
(4) "gas"
includes all natural gas and all hydrocarbons produced at the wellhead not
defined as oil;
(5)
"intangible drilling expenses" means those expenses defined in 26
U.S.C. 263(c) (Internal Revenue Code) as defined on January 1, 1974;
(6) [Repealed, Sec.
88 ch 74 SLA 1985].
(7) "taxable
property"
(A) means real and
tangible personal property used or committed by contract or other agreement for
use within this state primarily in the exploration for, production of, or
pipeline transportation of gas or unrefined oil (except for property used solely
for the retail distribution or liquefaction of natural gas), or in the operation
or maintenance of facilities used in the exploration for, production of, or
pipeline transportation of gas or unrefined oil; "taxable property"
includes
(i) machinery,
appliances, supplies, and equipment;
(ii) drilling rigs,
wells (whether producing or not), gathering lines and transmission lines,
pumping stations, compressor stations, power plants, topping plants, and
processing units;
(iii) roads, tank
farms, tanker terminals, docks and other port facilities, and air strips;
(iv) aircraft and
motor vehicles owned by a person whose principal business in the state is the
exploration for, production of, or pipeline transportation of gas or unrefined
oil and whose operation of the aircraft or motor vehicle directly relates to the
conduct of that business;
(v) maintenance
equipment and facilities, and maintenance camps and other related facilities;
and
(vi) communications
facilities owned by a person whose principal business in the state is the
exploration for, production of, or pipeline transportation of gas or unrefined
oil and whose operation of the communications facilities directly relates to the
conduct of that business;
(B) does not
include
(i) permanent
residences;
(ii) office
buildings requiring substantial local government services;
(iii) oil and gas
pipeline systems owned and operated by a public utility that is certificated
under
(iv) aircraft and
motor vehicles, except aircraft and motor vehicles taxable under (A) (iv) of
this paragraph; and
(v) communications
facilities, except communications facilities taxable under (A) (vi) of this
paragraph;
(8) "unrefined
oil" includes crude petroleum oil and other hydrocarbons regardless of
gravity that are produced at the wellhead in liquid form and the liquid
hydrocarbons known as distillate or condensate recovered or extracted from gas
other than gas produced in association with oil and commonly known as casinghead
gas.