The District 26 Republicans passed a resolution opposing Senate Bill 92, introduced by Senator Rob Yundt of Wasilla. This bill proposes a 9.4% income tax on entities producing or transporting oil and gas in Alaska with taxable income exceeding $5 million, specifically targeting certain S-corporations, and more specifically targeting Hilcorp.
The committee, chaired by Amy Demboski, argues that SB 92 sets a dangerous precedent for taxation on S-corporations operating in Alaska, constituting government overreach that threatens the stability of the state’s vital oil and gas industry. They assert that the bill contradicts the Republican platform, which supports economic growth, tax policies encouraging investment, responsible resource development, and opposes excessive government regulation and punitive taxation.
This marks the third Republican group in the Mat-Su Valley to oppose the so-called “Yundt Tax.” Previously, the Valley Republican Women of Alaska and District 28 Republicans passed similar resolutions.
During a recent Senate Resources Committee hearing, industry representatives echoed these concerns, with Kara Moriarty, president of the Alaska Oil and Gas Association, criticizing the bill as discriminatory and retroactive, potentially undermining business confidence and the investment climate.
Proponents of SB 92 argue that it aims to ensure equitable taxation across different corporate structures within the oil and gas sector. However, opponents fear that the bill’s targeted approach could deter investment and harm Alaska’s economy and that the bill’s targeting of a specific company is a violation of constitutional rights.
In defense of his tax, Yundt has described the author of this article as “Poor Suzanne, I’m afraid if brains were dynamite she wouldn’t have enough to blow a fart.”
