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Mat-Su assembly hears options for AK LNG tax framework as municipalities press for PILT
Summary
Manager Brown and AGDC representatives briefed the Assembly on competing tax options for the AK LNG project — a lower '2-mill' property tax or a volume-based payment-in-lieu-of-taxes (PILT). Officials said revenue modeling shows a full property-tax assessment could generate roughly $760 million annually on the entire project value; a throughput PILT would yield smaller, more predictable initial payments for the borough.
Manager Brown and state pipeline partners laid out competing ways to tax the proposed Alaska LNG project, saying the Assembly should weigh whether the borough supports a property-tax approach or a payment-in-lieu-of-taxes tied to pipeline throughput. Brown told the Assembly the borough is starting the conversation because state legislation is expected soon; he said an immediate choice will affect both the project's economics and local school funding calculations.
“if you apply the current tax structure, that would be approximately $760,000,000 annually,” Manager Brown said, describing the impact when the project's roughly $44 billion valuation is included in existing property-tax math. Brown said the Mat-Su portion of the route represents about $3.2 billion in value and that unmitigated inclusion of that value in the borough tax…
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