Natural Gas Throughput
Gasline owners would pay based on flow, not property value
Under HB 381, the levy would start at 6 cents per 1,000 cubic feet after ramp-up, then rise 1% a year. The bill would also replace several project taxes and local charges tied to the line.
In Alaska, HB 381 would shift the gasline project from property-based taxes to a throughput tax tied to gas moving through the system. The bill sets a starting rate of 6 cents per 1,000 cubic feet after ramp-up and replaces several other project taxes.
- The new tax would be based on gas flow, not property value.
- It starts after ramp-up at 6 cents per 1,000 cubic feet.
- The rate increases 1% each year after the first year.
- Late payments would face a 10% penalty plus interest.
- The bill would replace several project-related state and local taxes.
In Alaska, HB 381 would change the way the gasline project is taxed once its ramp-up period ends. Instead of leaning on property taxes, the state would levy an alternative volumetric tax, a charge based on the gas moving through the project rather than the value of the infrastructure itself.
The new tax would begin the day after ramp-up expires, starting at $0.06 per 1,000 cubic feet of natural gas throughput. After the first year, the rate would rise by 1% each year.
A tax that follows the gas
The bill also sets the paperwork clock. Returns would be due each month for the prior month’s throughput, with payment sent to the department.
If the tax is not paid on time, the bill adds a 10% penalty plus interest under existing delinquency rules. That makes the new levy less like a one-time project fee and more like an ongoing tax that tracks actual flow through the line.
What gets pushed aside
HB 381 would not just add a new charge. It would replace taxes on qualified property, the AS 43.56.010 tax, ad valorem taxes under AS 29.45.080, and certain municipal sales, use, income, license and excise taxes tied to the project.
That shift changes the project’s tax bill and the way some revenue is counted for state and local government. Recorded votes show the bill cleared a floor vote.