FINAL DRAFT RSB Fall 2007aw - Alaska Department of Revenue - Tax

126 Pages·2008·0.85 MB·English

Revenue Sources Book
Alaska Department of Revenue – Tax Division
FALL 2007
Revenue Sources Book
Alaska Department of Revenue – Tax Division
FALL 2007

Revenue Sources Book
Alaska Department of Revenue – Tax Division
FALL 2007
1. Introduction ..................................................................................1
2. Executive Summary ......................................................................3
3. Minerals ......................................................................................17
Recent high metals prices have inspired new exploration, development and plans
to open additional large mines in Alaska. General Purpose Unrestricted Revenue
from the mining industry reached $151.6 million in fi scal year 2007.
4. Oil Revenue .................................................................................29
In FY 2008, oil revenues are projected to contribute 89% of the state’s General
Purpose Unrestricted Revenue. Oil revenues will continue to play a key role in
Alaska’s future.
5. Other Revenue (except Federal & Investment) ..........................53
Revenue from non-oil sources includes non-oil taxes, charges for services, fi nes and
forfeitures, licenses and permits, rents and royalties and other revenue sources.
6. Federal Revenue ..........................................................................67
Federal funding accounted for 16% of the state’s total revenue in FY 2007.
7. Investment Revenue ....................................................................71
Investment earnings come from the Alaska Permanent Fund, Constitutional Bud-
get Reserve Fund, General Fund and other state investments.
8. State Endowment Funds .............................................................81
Alaska has six endowment funds including the Alaska Permanent Fund, Mental
Health Trust, Public School Trust, Alaska Children’s Trust, Power Cost Equaliza-
tion Endowment and the University of Alaska Endowment.
9. Public Corporations & the University of Alaska .......................85
Seven public corporations and the University of Alaska are treated as separate
component units of state government for fi nancial reporting purposes.
10. Appendices ..................................................................................93
Th e appendices provide 10 years of historical data and 10 years of forecast data
on oil revenue, prices and production. For a complete set of historical data, please
visit our web site at www.tax.alaska.gov/sourcesbook/index.asp.
11. Index .........................................................................................117
Fall 2007 Revenue Sources Book · i
Revenue Sources Book
Alaska Department of Revenue – Tax Division
FALL 2007
Tax Division Contact Persons Contact Persons for Specifi c Topics
Alaska Permanent Fund
Jonathan Iversen, Director Julie Hamilton, Director of Finance
907-269-6620 Alaska Permanent Fund Corporation
[email protected] 907-796-1535
[email protected]
Michael D. Williams, Chief Economist
907-269-1019 Constitutional Budget Reserve Fund
[email protected] Brian Andrews, Deputy Commissioner
Alaska Department of Revenue, Treasury Division
Jennifer Duval, Economist, Editor
907-465-2300
907-269-1025
[email protected]
[email protected]
Non- Petroleum Revenue
Clay Cummins, Program Coordinator, Publisher
Dan Stickel, Economist
907-465-2370
Alaska Department of Revenue, Tax Division
[email protected]
907-465-3279
[email protected]
Restricted Revenue
John Boucher, Senior Economist
Offi ce of the Governor, Management and Budget
907-465-4677
[email protected]
www.tax.alaska.gov
ii · Fall 2007 Revenue Sources Book
1. Introduction
General Discussion
Th e purpose of the semi-annual the market price of oil has more than Alaska’s total revenue picture also
Revenue Sources Book is to provide the tripled. For FY 2008, we project ANS includes earnings from investments
governor, legislature and citizens of the oil production will decrease to 0.731 in the Permanent Fund and CBRF,
state a summary of our past collections million barrels per day. federal revenue and other sources, such
of state revenue and a forecast of future as taxes, charges for services, licenses,
Before 2003, the Constitutional
revenue. Revenues are categorized permits, fi nes and forfeitures. Th e
Budget Reserve Fund (CBRF) was used
into four major components: (1) oil, information provided in this book will
to balance the state’s budget in 10 of
(2) federal, (3) investment, and (4) all provide greater insight not only into
the previous 15 years. Even if prices
other. the sources of revenue that support
remain high, the rapid fall in North
the state today, but also into future
Oil revenues continue to dominate Slope crude oil volumes could lead to
revenues from potential new sources.
the unrestricted revenue picture—and future budget shortfalls and draws on
are projected to provide more than the CBRF. Please note that totals in some tables
87% of General Purpose Unrestricted throughout this publication may not
Th e Alaska Legislature passed a new
Revenue through FY 2014. However, equal the sum of components due to
oil and gas production tax known as
North Slope oil production is rounding.
Alaska’s Clear and Equitable Share
declining. In FY 2007, Alaska North
(ACES) during November 2007.
Slope (ANS) output was 0.740 million
Th e governor signed this bill into
barrels per day compared to a peak of
law during December 2007 and the
2.006 million barrels per day in FY
projections in this forecast contain the
1988. While production declined by
tax revenue associated with the new
approximately 63% over that period,
law.
Fall 2007 Revenue Sources Book · 1
Alaska Tax Division • Department of Revenue
Revenue Sources Book
Alaska Department of Revenue – Tax Division
FALL 2007
2 · Introduction
2. Executive Summary
Total State Revenue
Figure 2-1. FY 2007 Total State Revenue: $12.3 billion
$13
$12
$11
Investment $3.9 billion
$10
$9
$8
Federal $2.0 billion
$7 Total Revenue
$12.3 billion
$6 Other ( except Federal & Investment)
$1.2 billion
$5
$4
$3 Oil $5.2 billion
$2
$1
$0
Fall 2007 Revenue Sources Book · 3
Alaska Tax Division • Department of Revenue
Figure 2-2. Total State Revenue by Major Component, FY 2007 and Forecasted FY 2008-2009
($ million)(1)
Oil Revenue History Forecast
Unrestricted FY 2007 FY 2008 FY 2009
Property Tax 65.6 53.5 52.4
Petroleum Corporate Income Tax 594.4 598.9 594.6
Production Tax 2,292.3 3,404.3 2,201.2
Royalties (including Bonuses, Rents, & Interest) 1,613.0 1,846.3 1,571.9
Subtotal 4,565.3 5,903.0 4,420.0
Restricted
Royalties to Perm Fund & School Fund (includes Bonuses & Rents) 545.7 629.6 537.6
Tax Settlements to CBRF 113.6 20.0 20.0
NPR-A Royalties, Rents & Bonuses 12.8 5.2 5.1
Subtotal 672.1 654.8 562.6
Total Oil Revenue 5,237.4 6,557.8 4,982.7
Other Revenue (except Federal & Investment) History Forecast
Unrestricted FY 2007 FY 2008 FY 2009
Taxes 437.3 406.6 390.0
Charges for Services 28.5 28.5 28.5
Fines and Forfeitures 7.2 8.4 8.4
Licenses and Permits 42.0 42.4 43.0
Rents and Royalties 11.8 10.0 10.0
Other 9.7 23.4 14.4
Subtotal 536.5 519.3 494.3
Restricted
Taxes 105.9 132.9 134.8
Charges for Services 228.2 246.3 248.0
Fines and Forfeitures 22.7 34.4 34.6
Licenses and Permits 35.6 36.6 36.9
Rents and Royalties 5.8 5.3 5.3
Other 286.7 122.5 181.8
Subtotal 684.9 578.0 641.4
Total Other Revenue 1,221.4 1,097.3 1,135.7
4 · Executive Summary