Alaska LNG tax bill advances to floor on split conference committee votes

A revised Alaska LNG tax bill advanced out of the Legislature's conference committee Thursday on a 2-1 vote in both the House and Senate delegations, restructuring how the proposed 800-mile North Slope gas pipeline and liquefied natural gas export project would be taxed. Rep. Justin Ruffridge, the lone dissenter in the House, argued the bill would redirect potential municipal property-tax revenue to the state.

The stakes for Alaska communities are concrete. Department of Revenue modeling presented to the Senate Finance Committee last month estimated that under current law, municipal property-tax revenue from the project would start at roughly $50 million in 2029 and rise to nearly $500 million by 2033, when full export operations would begin. Combined state and municipal property-tax revenue could reach about $750 million per year by 2033. The bill replaces that structure with an alternative volumetric tax, and Ruffridge argued the shift is a direct taking from local governments.