(a) Notwithstanding AS 29.35.670(a) or other provision of law, a producer that is a municipal entity is subject to taxation and payment of surcharges under this chapter for oil and gas that it sells to another party. (b) A municipal entity subject to taxation because of this section (1) is eligible for tax credits proportionate to its production taxable under AS 43.55.011(e); and (2) shall allocate its lease expenditures in proportion to its production taxable under AS 43.55.011(e). (c) In this section, 'municipal entity' means a municipality, municipally owned utility, public corporation of a municipality, or entity established by more than one municipality.
Alaska Legal Code