To the editor: I don’t understand the Legislature’s thinking not to tax limited liability corporations like Hilcorp the same way C corporations like BP are taxed, especially when the extraction of the state’s resources are involved. Now the state has to either lose a $1 billion in tax revenue or remake the sausage of oil taxation. With everything else the Legislature and the governor have on their plate, I am skeptical the taxation issues can be fixed in the time we need it before we fall further behind in the revenues we need to provide services people need.
In the past, we’ve pretty given the two Big Oil operators what they wanted, but now they have better profit alternatives in other parts of the world. New, secondary operators are interested in Alaska. They will say their profits will be less because extraction costs will be higher. I suspect they will tell us many reasons why they can’t pay the taxes of a C corporation. Do we need a special session to resolve this tax problem?