State, Department of Revenue v. Municipality of Anchorage

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Anchorage Municipal Light & Power (ML & P), a subsidiary of the Municipality of Anchorage, produces natural gas, some of which it uses to generate electricity it sells to ML & P customers. Alaska Statute 43.55.016(a) levies "upon the producer of gas a tax for all gas produced from each lease or property in the state, less any gas the ownership or right to which is exempt from taxation." But per AS 29.71.0380, a municipality is not subject to a state tax unless "the law or regulation expressly provides that the municipality is to be assessed or taxed by…