Section 15.21.001. Findings of fact.

Based upon the entire legislative history culminating in the passage of ch. 110, SLA 1978, and also the legislative history of ch. 113, SLA 1980, and ch. 116, SLA 1981, and, after reviewing in-depth the tax returns of corporations engaged in oil and gas production or pipeline transportation in the state, the department finds that  
		(1) the three-factor formula set out in AS 43.19.010, Art. IV, does not fairly or fully represent the income-producing activity in the state or the income earned in the state of corporations engaged in oil and gas production or pipeline transportation in the state;  
		(2) specifically, the property factor, payroll factor, and sales factor in combination do not accurately represent the value of activity relating to or associated with the extraction and transportation of nonrenewable resources of oil and gas in the state; and  
		(3) the application of the three-factor formula in AS 43.19.010, Art. IV, results in a total distortion of the income-producing activities and income earned by corporations engaged in oil and gas production and pipeline transportation because little weight is given to the tremendous raw wealth represented by the oil and gas produced from a lease or property in the state or transported in the state, or both.  

Authorities

43.05.010;43.05.080;43.19.010;43.20.142;44.25.020;01.05.031;43.20.065;44.62.125

Notes

Reference

15 AAC 21.003
15 AAC 21.005

Authority

AS 43.05.010 AS 43.05.080 AS 43.19.010 Art. IV, _ 18, Ak Const. AS 43.20.142 AS 44.25.020 Editor's note: In 2012 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 43.20.065 as AS 43.20.142. As of Register 204 (January 2013), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 15 AAC 21.001, so that the citation to former AS 43.20.065 now refers to the renumbered statute, AS 43.20.142.

History

Eff. 2/22/79, Register 69; am 5/21/81, Register 78; am 3/26/82, Register 81

References

15.21.001