Local Government
The oil and gas industry directly and indirectly affects the Alaska economy at a statewide and local level. At a statewide level, the taxes, fees and royalties paid by the oil and gas industry to the State coffers and make possible programs such as revenue sharing, and energy relief programs. On a local level, individual municipalities reap benefits from oil and gas local property taxes. The Table below describes each of the study’s regional revenues from local oil and gas property taxes. According to the Office of the State Assessor, in FY2007, local property taxes paid by the industry amounted to $236 million, most of which (about $199 million) was collected in the North Slope Borough. Valdez received the second largest share of property taxes from oil and gas, at almost $20 million.
Local Property Tax Revenue [1]
Table 1: Oil & Gas Local Property Tax Revenues, 2004-2007
City, Borough or Municipality |
2007 |
2007 |
2006 |
2005 |
2004 |
Borough or Municipality |
% of total property tax |
($ millions) |
($ millions) |
($ millions) |
($ millions) |
Municipality of Anchorage |
1.0% |
$4.2 |
$1.3 |
$0.8 |
$0.8 |
Fairbanks North Star Borough |
6.9% |
$5.7 |
$4.2 |
$4.3 |
$4.3 |
Kenai Peninsula Borough |
13.2% |
$7.0 |
$6.7 |
$7.5 |
$7.9 |
Also taxed by Kenai City |
4.1% |
$0.1 |
$0.1 |
$0.0 |
$0.0 |
Matanuska-Susitna Borough |
0.0% |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
North Slope Borough |
98.2% |
$199.1 |
$192.8 |
$189.0 |
$194.2 |
Boroughs and Municipalities Subtotal |
26.3% |
$216.1 |
$205.2 |
$201.6 |
$207.3 |
Cities in Unorganized Boroughs |
|
($ millions) |
($ millions) |
($ millions) |
($ millions) |
Cordova |
3.7% |
$0.1 |
$0.05 |
$0.0 |
$0.0 |
Valdez |
63.4% |
$19.9 |
$18.3 |
$13.0 |
$13.1 |
Whittier |
1.3% |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
Unorganized Borough Subtotal |
56.7% |
$19.9 |
$18.4 |
$13.1 |
$13.2 |
Total Oil & Gas Property Tax Revenues |
27.5% |
$236.0 |
$223.5 |
$214.7 |
$220.5 |
Table 2 shows the State taxable oil and gas property full value. In 2007, the State oil and gas full value was $15.6 billion, up from the previous year’s $14.4 billion.
Table 2: State Taxable Oil and Gas Property Full Value, 2004-2007
City, Borough or Municipality |
2007 |
2006 |
2005 |
2004 |
Borough |
($ millions) |
($ millions) |
($ millions) |
($ millions) |
Municipality of Anchorage |
$264.9 |
$201.7 |
$77.6 |
$47.2 |
Fairbanks North Star Borough |
$369.5 |
$377.8 |
$275.3 |
$271.2 |
Kenai Peninsula Borough |
$607.1 |
$557.0 |
$561.7 |
$611.3 |
Matanuska-Susitna Borough |
$2.7 |
$3.0 |
$3.8 |
$3.3 |
North Slope Borough |
$11,415.7 |
$10,455.9 |
$10,132.4 |
$10,342.0 |
City in Unorganized Borough |
$12,659.9 |
$11,595.5 |
$11,050.8 |
$11,275.0 |
| Borough Subtotal | ($ millions) |
($millions) |
($millions) |
($ millions) |
Cordova |
$4.4 |
$4.0 |
$2.8 |
$2.8 |
Valdez |
$992.9 |
$915.4 |
$652.5 |
$663.5 |
Whittier |
$0.7 |
$0.6 |
$0.5 |
$0.5 |
Unorganized Borough Subtotal |
$997.9 |
$920.0 |
$655.8 |
$666.8 |
Outside Taxing Jurisdictions Subtotal |
$1,957.5 |
$1,874.4 |
$1,336.6 |
$1,357.4 |
State Oil & Gas Full Value |
$15,615.3 |
$14,389.9 |
$13,043.2 |
$13,299.1 |
1. All the information in this section comes from Alaska Department of Community and Regional Affairs, “Alaska Taxable: Municipal Taxation, Rates, and Policies,”2007, 2006, 2005, & 2004.
