Alaska Governor Links $44‑65B Gas Pipeline to 90% Property‑Tax Cut

**Alaska Gov. Mike Dunleavy proposes cutting 90% of property taxes (a levy on real estate) on a planned $44‑65 billion natural‑gas pipeline, replacing the lost revenue with future taxes on the gas it would carry.

On Thursday, as a special legislative session opened, Gov. Mike Dunleavy told attendees at the Alaska Sustainable Energy Conference that the previously discussed gas pipeline is moving toward execution.

He said the state would need to shift away from its current petroleum property tax system (a levy on real estate tied to oil infrastructure) to enable the project, which local governments rely on for revenue.

Under the governor’s proposal, 90% of the property tax (a levy on real estate) that would apply to pipeline‑related infrastructure would be eliminated, with the lost revenue replaced by future taxes on the natural gas transported through the line.

The Glenfarne Group’s pipeline is estimated to cost between $44 billion and more than $65 billion.

Dunleavy said the project has progressed from concept to discussion to execution.

Supporters argue the tax swap could unlock an energy export route and create jobs without raising current tax rates.

Critics warn that forgoing most property tax revenue (a levy on real estate) could strain local budgets and that the plan hinges on a tax‑incentive bill (legislation that would reduce taxes) that has not yet been approved.

They also question the project’s economic viability, noting previous gas‑pipeline proposals have failed over the past fifty years.

Watch for the legislature’s vote on the tax‑incentive bill and any subsequent moves toward a final investment decision by the pipeline developer.