Day 113
5/9/17, 8:55 AM
Senator Cathy Giessel
District N
Northeast Anchorage, Anchorage Hillside,
Indian, Bird, Girdwood and Portage
May 9, 2017
DearFriendsandNeighbors:
Today I am sharing information
about what Royalty Oil means to
Alaskansinrealdollars.Mostfolks
don'thearaboutthisgoodnews.
Click here to email me.
HereiswhatrecentlypassedtheSenate:
Youcanclickonthebillnumbertoreadtheactualbill.
SR5-PurchaseofAlaska;150thAnniversary-IvotedYes
OnWednesday,May3rd,theAlaskaStateSenateunanimouslyapproved
aresolutioncommemoratingthe150thanniversaryofthepurchaseof
Alaska.
Theresolutionencouragesthefederalgovernmenttorecognizethe
significantcontributionsAlaskahasmadetotheenergyneeds,economic
stabilityandnationalsecurityoftheUnitedStates,andtoallowthestate
thefreedomtopursueaprosperousfuture.Further,itrecognizesthe
NativepeopleswhoresidedinAlaskapriortorecordedhistory.
OnMarch30,1867,theU.S.SecretaryofStateWilliamSewardagreedto
purchaseAlaskafromRussiafor$7.2million($123millionin2017
dollars),increasingthesizeoftheU.S.byalmost20percent.
RoyaltiesandTaxesPart2
It'sOurOil!
SenatorCathyGiessel
LastweekwetalkedaboutRoyalty,whatitisandwhy"It'sOurOil".
Clickheretoreadlastweek'sarticle.
"It'sOurOil"Money
Today,IwanttosharewithyouwhatRoyaltymeansindollarstothe
State'streasury.Royaltyisthe"It'sOurOil".
Forclarity,AlaskahasseveralstreamsofmoneythatcomefromOil
andGas.
PropertyTax(thatispaidtothepropertyowners:State,Native
Corporations,privatelandowner)
CorporateIncomeTax(thatispaidbyallCCorporationsin
Alaska)
Royalty(paidtoState,whoownsallsubsurfacerightsinAlaska)
Production(Severance)Tax(whichiswhatallthedebatein
Juneauisabout)
WeareonlydiscussingRoyaltytoday,onebucketofmoneyfromoiland
gas.
TheStategetsaRoyaltyof12.5-16.6%ofthevalueofeverybarrelofoil
comingoutoftheNorthSlopefields.Whethertheoilisprofitabletoa
taxpayerdoesn'tmatterforRoyalty:regardlessofprice,orhowthe
companyisoperating,royaltiesaredueonevery,single,barrelproduced.
Underallcircumstances,thetaxpayermustpaythestatetheRoyalty
payment.
RoyaltyDollarsandCents
InthemonthofMarch2017,Alaska'sOilandGasRoyaltyvaluewas
$89.6million.Whencombinedwithotherfundsfromoilandgas
leases,thetotalpaidtothestateforMarchalonewas$94million.
LookingattheFiscalYear17(July2016toJune30,2017),Alaska'sOiland
GasRoyaltyvalueis$689.8millionsofar.Whencombinedwithother
fundsfromoilandgasleases,thestateofAlaskawillhavereceivedatotal
of$741millioninthisfiscalyear,basedonprojectionestimates.
RoyaltyvalueiswhymyfellowSenatorsandItalkaboutthe
importanceofmoreproduction.Wefocusonincentivizingnewoil
andgascompaniestocometoourState,toinvestinourState,and
producemoreoilandgasinourstate.Theirworkandsuccessbringing
oilandgasoutofthegroundputsmoremoneyintoourstate's
treasury.
WheredoestheRoyaltymoneygo?
Royaltymoneyfundseducation!Yes,½of1%oftheRoyaltymoney
goesintotheSchoolFund.
ForthemonthofMarch,theSchoolFundreceived$470,183.40in
Royaltymoney.
FortheFiscalYear,theSchoolFundhasreceived$3.7millionin
Royaltymoneysofar.
RoyaltymoneyfundsyourPFD!Atleast25%oftheRoyaltymoney
goesintothePermanentFund,whichisinvestedaroundtheworldand
generatesearnings.Outofthoseearnings,yourPFDisappropriatedby
theLegislature.Wehaveforyearsputmorethan25%intothePermanent
Fund
ForthemonthofMarch,thePermanentFundreceived$24.1
millioninRoyaltymoney.
FortheFiscalYearsofar,thePermanentFundhasreceived$212.8
millioninRoyaltymoney.
Royaltymoneyfundspublicsafety,health,roads.Themajorityof
theRoyaltymoneygoesintotheGeneralFund.FromtheGeneralFund,
allthefunctionsofstategovernmentarefunded.
ForthemonthofMarch,theGeneralFundreceived$69.4million
inRoyaltymoney.
FortheFiscalYearsofar,theGeneralFundhasreceived$509.6
millioninRoyaltymoney.
WhataboutOilTaxes?
Nearlyeveryyear,there'salotofdiscussionintheLegislatureabout
whethertoincreasethetaxonoilandgas.
Taxesarebasedonincomeandprofitability,justlikeyouandIare
taxedbytheIRSonourincome.Oilandgasincomedependsonthe
priceoftheproduct,justlikeincomefromagrocerdependsonthe
priceofmilk,eggs,cerealandveggies.Globally,theworldpriceofoil
droppedover70%inthelast3years.Asaresult,ouroiltaxincomehas
gonedownsignificantly.
InFiscalYear2017(thecurrentyear),weareprojectedtoreceive$189.5
millioninoilproductiontaxmoney.
AlaskaalsoreceivesCorporateIncomeTax,paidbyprimarilyenergy
companies,whichforFiscalYear2017isprojectedtobe$122.6million.
Anddon'tforgetPropertyTaxforFiscalYear2017,whichisprojectedto
be$115.8milliontostategovernment.Thatnumberdoesn'tinclude
the$426millioninpropertytaxespaidtolocalgovernments.
That'satotalof$427.9millionfromalltaxesforthisFiscalYearforour
stategovernment.
Comparethattothenumber,sofarinFY17,ofRoyaltypaymentsof
$741million.
Nowyoucanseetherealvalueof"OurOil"-it'sintheRoyalty.
MoreProduction=MoreRoyalty+moreothertaxrevenue.
Thegoodnewsisthattheproductionofoilhasincreasedby3%overlast
year.Ithasincreasedby6%fromtwoyearsago.
Wheretofindthisinformationyourself?
YoucanfollowthesenumbersyourselfontheState'swebsite.
TheDepartmentofNaturalResources,DivisionofOilandGas,hasthe
Royalty
information:http://dog.dnr.alaska.gov/Royalty/Funds.htm#received
TheDepartmentofRevenue,TaxDivision,hastheRevenueSources
Book,Spring1017edition:
http://www.tax.alaska.gov/programs/documentviewer/viewer.aspx?1331r
Uber/LyftRideShareBill
There'salotofinterestintheride-sharebill.Forthosewhoare
interested,SB14RideShareUber/LyftbillpassedtheSenateonMarch
23,2017.IvotedYes.
GlennHighway/MuldoonRoadConstructionUpdate
BealerttointermittentLANE
RESTRICTIONS,Mondaythrough
Friday,from7:00amto5:30pm.
Expectincreasingconstruction
activitywithinthevicinityofthe
interchangeoverthenexttwo
weeks.
It'sapleasuretoserveandrepresent
thewonderfulpeopleofdistrictN!
Ilookforwardtohearingyourideas,
suggestionsandcomments.
To email me, click here.
Juneau: State Capitol, Room 427, Juneau, Alaska 99801
Anchorage: 1500 W. Benson Blvd., Anchorage, AK 99503
Phone: 800.892.4843
Copyright © 2017. All Rights Reserved.
Staff
Contacts
Quick
Links
Congressional
Delegation
Jane Conway
Senate Republican Majority
Senator
Lisa Murkowski
Anchorage Office
907.271.3735
Akis Gialopsos
Alaska State Legislature
Senator
Dan Sullivan
Anchorage Office
907.271.5915
Kari Nore
State of Alaska
Congressman
Don Young
Anchorage Office
907.271.5978
http://campaign.r20.constantcontact.com/render?m=1116334797370&ca=293a0324-c623-4cca-81ff-e207c32d34eb
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