A recent recalculation of Alaska’s HB 381 reveals significant changes in municipal revenues. The updated analysis shows that state revenues under HB 381 are further reduced compared to the previous version, with municipal revenues slashed by two-thirds in 2042 and over half in 2062.

Revenue Reductions

The facts: HB 381 allows a combined State and municipal revenue reduction of 92.4% in 2042, 89.3% in 2052, and 77.8% in 2062. Municipal revenues take a much steeper reduction than State revenues, with reductions being approximately twice that of the State’s revenue reduction.

Proponents of the tax cut argue that reducing tax burdens on project producers will benefit the average Alaskan by reducing the price of gas. Opponents argue that HB 381 fails to capture a revenue source for the State and local governments, which are feeling the effects of tight budgets.

Original reporting: Must Read Alaska (Anchorage) — read the source article.