The Alaska House Finance Committee has begun considering a 1 percent tax hike on the state’s most profitable mining operations.
House Bill 253 is one of several measures proposed by Gov. Bill Walker to address the state’s $4 billion annual deficit.
As originally crafted by a working group organized by the governor, the bill would have raised mining taxes on mines of all size. The bill was redrafted by the House Resource Committee, and the new version calls for an increase only on mines earning more than $100,000 per year in profit.
“What kind of analysis was done to determine a tax increase was necessitated?” asked Rep. Cathy Muñoz, R-Juneau, at one point in the hearing.
The finance committee is the last stop for the bill before a floor vote, and on Wednesday members discussed what impact a tax increase could have on the state’s mining industry.
“We need different people at the table for that part of the discussion,” said Rep. Tammie Wilson, R-North Pole, who commented that she believes miners are already suffering the costs of increased regulation.
HB 253 was held in committee for additional hearings.
