Dunleavy to Call Special Session on Gas Line Property Tax Within Hour of Adjournment

Governor Mike Dunleavy announced Tuesday he will call a special legislative session: "Immediate. It is 1 hour after. You cannot do it any later than 1 hour after adjournment. There will be a special session," Dunleavy stated during a press conference.

The special session will address restructuring Alaska's property tax law for the proposed gas pipeline project. Under current law, investors would face roughly $1 billion in annual property taxes before gas begins flowing through the pipeline. That structure makes Alaska uncompetitive even compared to Texas, Dunleavy said.

Secretary of the Interior Doug Burgum, who joined Dunleavy at the press conference, warned that federal participation would come with expectations about state action on property taxes. "The federal government is not going to throw a bunch of money in so that the state can have, you know, among the highest property taxes," Burgum said.

The statement highlights a key dynamic in the gas line negotiations: Federal support hinges on Alaska restructuring its property tax system to make the project financially viable for investors.

The governor said municipalities along the pipeline route would need to accept restructured property taxation to make the project financeable. "We have to ask that the various municipalities that will be impacted come together with us to ensure we get a gas line first and then make sure that those communities, the state of Alaska, gets its fair share. There is no fair share though if there is no gas line," Dunleavy stated.

Burgum described the opportunity as unique, noting that the project was the only infrastructure initiative President Trump mentioned in his address to Congress 15 months ago. "If it is not built, there will not be property taxes, there will not be royalties, there will not be whatever. If it is built, you got the next 50 years to argue over, you know, how do you extract revenue out of it," Burgum said.