Opinion ID: 2524427
Heading Depth: 5
Heading Rank: 1

Heading: Alaska Statute 29.45.080(b): mill rate based on maximum taxable revenue under the $1,500 per capita limitation

Text: Alaska Statute 29.45 addresses municipal taxation, and subsection .080 specifically addresses oil and gas taxation as provided for in 43.56, discussed above. This section describes the two methods by which municipalities may levy and collect taxes on 43.56 property. Alaska Statute 29.45.080(b) describes the first method by which municipalities may tax oil and gas property. This method is based on the total tax revenue that the municipality may collect in a given year. It imposes a $1,500 a year per-person cap on revenue: A municipality may levy and collect a tax on the full and true value of taxable property taxable under AS 43.56 as valued by the Department of Revenue at a rate not to exceed that which produces an amount of revenue from the total municipal property tax equivalent to $1,500 a year for each person residing in its boundaries. Thus, this section requires municipalities to adjust mill rates such that the total tax revenue from 43.56 property and other taxable property does not exceed $1,500 per person. Moreover, AS 43.56.010(b), discussed above, requires the municipality to tax the 43.56 property at the same rate that it applies to other taxable property.