Bill > SB280

This bill establishes an alternative tax system for certain natural gas pipeline projects, referred to as "qualified property," which are defined as components of an Alaska liquefied natural gas project or integrated carbon capture infrastructure that began construction after January 1, 2026, and were owned or financed by a state instrumentality. Specifically, it creates a temporary tax abatement, known as a "ramp-up period," during which these qualified properties are exempt from state and municipal property taxes. This period begins when the project starts commercial operations and ends when it reaches a certain daily natural gas throughput or after a set number of years, whichever comes first. Following this abatement, an alternative volumetric tax is imposed, calculated at $0.06 per 1,000 cubic feet of natural gas throughput, with an annual increase. This volumetric tax replaces all other property taxes, as well as certain municipal sales, use, income, and excise taxes, on the qualified property. The revenue from this volumetric tax is allocated between municipalities and the state based on the original cost of the property within their jurisdictions. The bill also clarifies that "local contribution" for school funding purposes will not include revenue received by a municipality under this new tax system and amends existing laws to ensure that municipalities cannot levy taxes on this qualified property beyond what is allowed by the new volumetric tax. Finally, the bill specifies that the benefits and alternative tax status for qualified property will terminate on January 1, 2040, if commercial operations have not commenced by that date.