Competitive Framework for Alaska: 2012

Deficiencies in HB 110 In addition HB 110 creates an entirely new problem. Specifying different tax rates for Existing and New Production requires tax payers to submit different tax returns for these two classes of production. This is called ring fencing. This in turn means that all revenues and costs need to be allocated to "existing" and "new". This is complex to administer and could lead to significant revenue losses for the State. HB 110 does not specify how this process would have to take place. HB 110 is therefore not a viable alternative to ACES. 73

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