Opinion ID: 2524427
Heading Depth: 1
Heading Rank: 2

Heading: Calculating the Portion of Oil and Gas Property Taxable By a MunicipalityA Plain Reading of the Act

Text: Alaska Statute 43.56.010(c) provides that where the total value of assessed property of a municipality taxing under AS 29.45.080(c) exceeds the 225% cap, the Department of Revenue shall designate the portion of the tax base against which the local tax may be applied. Subsection .010(c) does not itself include a formula that would control how the Department of Revenue chooses to designate the taxable portion of the local tax base. But subsection .010(c) applies only to municipalities taxing under AS 29.45.080(c), and subsection .080(c) does contain such a formula. Shortened for ease of understanding, AS 29.45.080(c) provides: A municipality may levy ... a tax on the ... value of that portion of [oil and gas property] which value, when combined with the value of property otherwise taxable by the municipality does not exceed [the 225% cap]. This describes in plain language the formula for determining what portion of oil and gas property is taxable by a municipality. From the 225% cap subtract the value of property otherwise taxable. The remainder is the portion of oil and gas property taxable by a municipality. Expressed mathematically the equation is [portion of value of oil and gas property taxable by municipality] = [225% cap]-[value of property otherwise taxable]. Once the portion of oil and gas property taxable by a municipality is determined, it becomes a simple matter for the Department of Revenue to designate the portion of the tax base against which the local tax may be applied under AS 43.56.010(c). The Department arrives at that figure by adding the value of property otherwise taxable by the municipality to the value of the portion of oil and gas property taxable by the municipality, the latter of which has already been determined under AS 29.45.080(c). The sum of these two figures is the portion of the total tax base that the municipality may tax. Mathematically this equation is [tax base] = [portion of value of oil and gas property taxable by municipality] + [value of property otherwise taxable]. The fact that AS 29.45.080(c) clearly supplies a formula for determining the portion of oil and gas property taxable by a municipality does not necessarily mean that the plain language of that subsection is controlling. We have rejected the aspect of the plain meaning rule that bars a court from considering legislative history as an interpretative aid if a statute's meaning is facially plain. [14] Nonetheless, the literal meaning of a statute will control unless it is convincingly contradicted by evidence of legislative intent. Although we normally give unambiguous language its plain meaning, we may rely on legislative history as a guide to interpreting a statute. But `the plainer the language of a statute, the more convincing contrary legislative history must be' to interpret a statute in a contrary manner. [15] In this case, the literal or plain meaning of the formula expressed in .080(c) is in harmony with the legislative history of the Oil and Gas Property Tax Act. The act was intended to permit the state to raise revenue from a property tax on oil and gas property, while also permitting municipalities whose boundaries encompassed oil and gas property to tax it for local revenue needs. The formula expressed in subsection .080(c) accomplishes this purpose. [16] Therefore, the literal meaning of this subsection is controlling.