JUNEAU, Alaska — The Alaska state Senate voted Wednesday night by the barest of margins to approve a massive tax cut for the oil industry in the hope that it would lead to more oil production in Alaska.
The vote on Senate Bill 21 was 11-9, with only Republicans supporting the measure. Two other Republicans, Gary Stevens of Kodiak and Bert Stedman of Sitka, joined the Senate’s seven Democrats in voting against the bill. With rural areas so dependent on state spending, two Democrats with large rural constituencies who are otherwise part of the Republican majority caucus, Donny Olson of Golovin and Dennis Egan of Juneau, voted against the bill.
The vote showed that the 2012 election, where redistricting helped knock off three Democratic state senators, played a decisive role in changing the outcome on oil taxes. An oil tax bill pushed by Gov. Sean Parnell failed to make it through the Senate last year.
The vote was taken at 8:59 p.m. after hours of impassioned debate rarely heard in the Alaska Legislature. But the outcome had been all but sealed once an 11-9 vote along identical lines approved an amendment earlier in the day to slightly increase the tax on industry. That brought in the main holdout, state Sen. Click Bishop, R-Fairbanks.