Senate Democratic members introduced two pieces of legislation which aims to increase revenue in Alaska. Senate Bill 3002 is sponsored by Senators Tom Begich, Elvi Gray-Jackson, and Donny Olson. It increases the motor fuel tax from $0.08 per gallon to $0.16 per gallon, decrease the oil and gas per barrel tax credit from $8 to $5, and close a loophole in Alaska’s corporate tax law by requiring non-public companies to pay the corporate income tax rate of 9.4%. The proposed revenue measures would generate $250 million next per fiscal year for the state and grow continually at a steady rate.
Sen. Tom Begich:
“Now together these things provide the revenue for a larger dividend. They allow us to continue modest, but not unsustainable growth for inflation for our budget. I certainly would welcome other bills and legislation that are out there that might entail a statutory spending cap of some kind, those kinds of things. The idea, though, Mr. President is to put these on the table knowing we may not have enough time to deal with these and hoping that they’ll be addressed immediately so that we can move everything to the finance committee and they can do its work so that it can resolve what needs to be done in terms of all of these issues – revenue, sustainability and permanency – all of these are important.”
Begich also introduced Senate Bill 3003 accompanied by Senate Joint Resolution 302. The proposal would prioritize Power Cost Equalization as well as other critical government services, resolve spending tensions between dividends and government spending, and provides for a minimum $1,200 sustainable dividend that will grow over time.
Senate Bill 3002 was referred to the resources committee and Senate Bill 3003 was referred to the finance committee.
Transcribed audio courtesy of KTOO 360 TV.