And that makes taxes OK? Calling them royalties? What if New York charged royalties for every stock transaction at the NYSE?
They are far from being oppressive.
But I'd be willing to bet that the average oil company didn't pay 12.5% in federal taxes. Yet we talk about the need to do away with taxing the job creators in order to spur hiring. Imagine how many jobs might be created in Alaska if they didn't pay a 12.5% tax to the state?
However, the additional taxes they have piled on top of the royalties are excessive. And they are not part of the PFD.
Cut the PFD and that tax burden goes down by 12.5%.
In your state, what is the going rate for oil royalties?
In Kansas any royalties for mineral rights go to the owner of the property and not the state. So we don't tax the companies to distribute the wealth here.
What if New York charged royalties for every stock transaction at the NYSE?
There is a big difference in taxing a transaction that happens in your jurisdictions, and selling a resource.
But I'd be willing to bet that the average oil company didn't pay 12.5% in federal taxes.
Don't bet too much of on that.
ExxonMobil income tax rate alone was 40.7% in 2010.
http://www.exxonmobil.com/Corporate/Files/news_pubs_fo_2010.pdf
Summary Statement of Income, Page 22.
In Kansas any royalties for mineral rights go to the owner of the property and not the state.
No, not the owners of the property (surface) but the owners of the mineral rights, same as almost everywhere.
http://www.kgs.ku.edu/Publications/Oil/primer11.html
In Kansas, you can sell the property and retain the mineral rights. Which is what the state of Alaska has done for the State land, they have retained the mineral rights. The natives retained their mineral rights and the feds retained their mineral rights.
When I owned property in Alaska, the state still owned the mineral rights. Just as in Texas, the property I own was once part of a larger ranch, that family retained the mineral rights when the subdivision was created.
Oil that is produced in Alaska from Native Lands or on Federal does NOT contribute to the dollars that go to the permanent fund. It is only the oil produced from the state owned mineral rights that contributes, not all oil produced in the state.
A better comparison is not taxes but Federal Royalty rates. The federal royalty rate for the infamous BP Macondo oil spill lease in the Gulf of Mexico was 18.75 percent. Many landowners are getting 20 percent or higher royalties for their Barnett Shale production. Fort Worth City Council approved a royalty rate of 28 percent for natural gas drilling rights under Meacham Airport. Some nations require a 51 percent or higher royalty from foreign companies drilling and producing within their borders.
http://wellservicingmagazine.com/royalty-rates-around-oilpatch
- - - - - - -
The Interior Department is also considering, through a separate effort, an increase to onshore production royalty rates, now at 12.5%. The royalty rate for offshore production is 18.75%
Kansas