Gasline owners would pay based on flow, not property value

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.