Department: Senate plan not meaningful change

JUNEAU, Alaska (AP) — The state Revenue Department says a Senate plan to address oil taxes doesn't represent the kind of change needed to boost oil company investment.

This comes from the department's presentation to the Senate Finance Committee, which was released in advance of a Wednesday hearing.

The Senate plan would, among other things, address progressivity, reward new production and set a production tax floor. It also would separate oil and gas production for purposes of taxation.

The department says the new production allowance would cut oil taxes by less than $25 million total. It says the tax floor would increase revenue by less than $25 million a year, based on the department's fall production forecast. If oil fell to $40 a barrel, however, revenues would increase by over $400 million a year.