There is always more than the liberal press will tell you. It took a bit but I found out the real story. This "windfall tax" was Bill #2001. The Legislature after modifying , read increasing, her proposed tax on increased prices went ahead and raised taxes across the board..
The key thing to note here is the final vote to adopt was veto proof. It was Yeas, 35... Nays, 4... Excused, 1... Absent, non.
I've been reading the arguments leading up to this and it appears Palin tried to head off the Legislature's Chair's intent to revisit the ACES [tax] on their own by her introducing a lesser version. It didn't work apparently. The Legislature saw blood in the oil and got greedy. Its quit the read but one can start here;
Press Release: 2007-10-31 - PPT/ACES Documents Uploaded to Majority Web Site -- 25th AK Legislature House Majority
This puts it into plainer language but there is still some stuff inbetween the lines not mentioned:
Local News | Windfall tax lets Alaska rake in billions from Big Oil | Seattle Times Newspaper
Then last year, Palin introduced a graduated tax pegged to increased oil prices. The
state Legislature modified her proposal to increase the state's take even further."because"
Production falling
The bill's proponents —
a coalition of Democrats and maverick Republicans — argued that oil production was declining in Alaska, and that the lower tax rate under previous governors had done little to spur additional investment in the state's oil industry.
Critics say the companies, who have lobbied to open the federal Arctic National Wildlife Refuge to exploration, have lagged badly in developing already available fields on state lands. Some estimates indicate those fields may contain billions of barrels of oil, mostly heavy crude that's difficult to extract.
They argue that the state — which owns most of the land around Prudhoe Bay, North America's largest oil field — needs to grab its fair share of proceeds from the declining output there.
"You don't get to grow another oil barrel," said French, the Anchorage lawmaker. "You sell that barrel once, and it's gone forever."
The Alaska tax is imposed on the net profit earned on each barrel of oil pumped from state-owned land, after deducting costs for production and transportation, which are currently estimated at just under $25 a barrel.
The tax is set at its highest rate in Prudhoe Bay, where the state takes 25 percent of the net profit of a barrel when its price is at or below $52.
The percentage then escalates as oil prices rise over that benchmark. Alaska gets about $49 of a $120 barrel, not counting other fees.
ConocoPhillips said that in total, once royalty payments and other taxes are added in, the state captures about 75 percent of the value of a barrel.
An accounting benefit eases the sting for oil companies. They get a huge deduction on their state taxes when calculating their federal taxes.
Journal Text for HB2001 in the 25th Legislature
Journal Text for HB2001 in the 25th Legislature
Full Journal
11-16-2007 House Journal 1667 Yeas: Buch, Cissna, Coghill, Crawford, Dahlstrom, Doll, Doogan,
Edgmon, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris,
Holmes, Joule, Kawasaki, Keller, Kelly, Kerttula, LeDoux, Lynn,
Nelson, Salmon, Seaton, Stoltze
Nays: Chenault, Fairclough, Hawker, Johansen, Johnson, Meyer,
Neuman, Olson, Ramras, Roses, Samuels, Thomas, Wilson
Excused: Foster
And so, lacking the necessary 27 votes, the effective date clauses were
not adopted, and the new title follows:
SENATE CS FOR CS FOR HOUSE BILL NO. 2001(FIN)
am S(efd fld H)
"An Act relating to the production tax on oil and gas and to
conservation surcharges on oil; providing a limit on the amount of
tax that may be levied on the production of certain gas that is
produced outside of the Cook Inlet sedimentary basin; relating to
the sharing between agencies of certain information relating to the
production tax and to oil and gas or gas only leases; expanding the
period in which the Department of Revenue may assess the
amount of oil and gas production tax and conservation surcharges;
relating to state oil and gas audit masters; relating to oil and gas
auditors and certain oil and gas auditor supervisors; establishing
an oil and gas tax credit fund and authorizing payment from that
fund; and making conforming amendments."
Representative Samuels moved that the House adopt the Senate letter
of intent (Senate Journal page 1549).
The question being: "Shall the House adopt the Senate letter of
intent?" The roll was taken with the following result:
SCS CSHB 2001(FIN) am S(efd fld H)
Concur
Senate Letter of Intent
YEAS: 35 NAYS: 4 EXCUSED: 1 ABSENT: 0
11-16-2007 House Journal 1668 Yeas: Buch, Chenault, Cissna, Crawford, Dahlstrom, Doll, Doogan,
Edgmon, Fairclough, Gara, Gardner, Gatto, Gruenberg, Guttenberg,
Harris, Hawker, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,
Kelly, Kerttula, LeDoux, Lynn, Nelson, Neuman, Olson, Roses,
Salmon, Samuels, Seaton, Stoltze, Thomas
Nays: Coghill, Meyer, Ramras, Wilson
Excused: Foster
And so, the Senate letter of intent was adopted.
The Chief Clerk notified the Senate.
SCS CSHB 2001(FIN) am S(efd fld H) was referred to the Chief Clerk
for engrossment.
Palin Pleased with Obama's Energy Plan
:ROFLMFAO:
than anything Obama has proposed.
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