State: Revenue Lower Due to Oil Prices, Production
The state is expecting nearly $2 billion less in oil and gas production taxes this year, which Revenue officials say has more to do with lower-than-expected oil prices and declining production than with the new oil tax law.
The fall revenue forecast, released Wednesday, shows the state expects to receive nearly $2.1 billion in unrestricted revenue from the production tax. That compares to nearly $4.1 billion in fiscal year 2013 and an estimated $1.7 billion in fiscal year 2015.
Revenue Commissioner Angela Rodell says lower oil prices are expected to continue having the largest impact on the state's revenue picture.
Oil revenues account for more than 90 percent of Alaska's unrestricted revenue, which is money that isn't restricted in its use by the law, constitution or something else.
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