Photo by Rashah McChesney/Alaska’s Energy Desk
The Fairbanks North Star Borough Assembly is holding a special meeting to discuss a major decision affecting the valuation of the Trans Alaska Pipeline System, or TAPS. This issue has significant implications for borough revenue, local services, and whether pipeline owners are paying their fair share to the communities impacted by this infrastructure.
What the Assembly Is Discussing
The Assembly is scheduled to receive a public update on the May 22, 2026 State Assessment Review Board decision regarding the valuation of TAPS. The agenda also includes a possible executive session with legal counsel to discuss next steps, including whether to appeal the decision to Superior Court and/or pursue mediation.
The state hearing that led to this decision was held May 12–15, 2026 in Anchorage, with videoconference access available through the Department of Revenue and Office of Administrative Hearings.
The Key Numbers
The Department of Revenue initially assessed TAPS for 2026 at about $10.318 billion. The State Assessment Review Board increased that valuation to about $13.012 billion, a roughly $2.69 billion increase in assessed value.
The oil companies argued for a much lower valuation of around $2.8 billion, while municipalities, including the Fairbanks North Star Borough, North Slope Borough, and City of Valdez, argued for at least $20.083 billion.
Why This Matters for FNSB
TAPS property taxes are a major revenue issue for communities along the pipeline. Alaska’s oil and gas property tax system is based on a 20-mill, or 2%, tax on the full and true value of taxable oil and gas property. The State and affected municipalities share in that revenue.
The recent SARB decision could put Alaska and three municipalities in line for about $60 million more in oil-industry property tax revenue than under the Department of Revenue’s initial assessment. FNSB is one of the municipalities that receives TAPS property tax revenue.
For local residents, this matters because borough revenue helps support schools, emergency services, roads, and other public services. A fair TAPS valuation can help reduce pressure to shift costs onto local taxpayers.
What the Dispute Is Really About
At the center of this dispute is how to value an aging but still critically important pipeline. The question is not just how old TAPS is, but how much useful economic life remains based on future oil production and proven reserves.
SARB found that the Department of Revenue used an improper depreciation approach because it relied on past production rather than proven reserves and expected future production. Petroleum News reported that SARB applied an economic-life analysis tied to when throughput may drop below 100,000 barrels per day.
What Could Happen Next
Both sides may appeal the decision. The reported deadline is 30 days from May 22, 2026, to appeal to Alaska Superior Court. Because 30 days from May 22 falls around June 21, 2026, counsel will need to confirm the actual filing deadline under court rules.
For FNSB, the Assembly’s executive session is likely about whether to defend the SARB valuation, seek a higher valuation through appeal, respond to an oil-company appeal, pursue mediation, or some combination of those options.
Take Action
Community members should urge the FNSB Assembly to protect local public revenue and defend a fair valuation of TAPS. Pipeline owners should pay their fair share to the communities that host and are impacted by this infrastructure — not shift costs onto local residents, schools, and public services.
In written or verbal testimony, residents can ask the Assembly to:
- Support a fair and accurate valuation of TAPS;
- Protect borough revenue for schools, emergency services, roads, and public services;
- Oppose efforts by pipeline owners to undervalue TAPS and shift costs onto local residents;
- Be transparent with the public wherever possible; and
- Direct legal strategy that puts FNSB residents and communities first.
For FNSB, this is about making sure one of Alaska’s most valuable pieces of infrastructure is taxed fairly. A higher TAPS valuation could mean more revenue for borough services and less pressure on local residents. But the $13 billion decision is still below what municipalities argued TAPS is worth, so the Assembly is weighing legal options before the appeal window closes.
Learn More
- FNSB Special Assembly Meeting Agenda
- Petroleum News: SARB increases TAPS assessment to $13 billion
- KTOO/Northern Journal: Tax board raises TAPS value by $3 billion
- Alaska Online Public Notice: SARB Hearing
- Alaska Department of Revenue: Property Tax 101
How to Comment
Community members can submit written testimony or sign up to provide verbal testimony to the Fairbanks North Star Borough Assembly.
Submit written testimony:
Email your comments to Assembly@fnsb.gov. In the subject line, use something clear like: TAPS Valuation / June 11 Special Assembly Meeting.
Give verbal testimony by phone:
Call the Borough Clerk’s Office at 907-459-1401 or complete the Sign-Up for Telephonic Testimony form by 4:30 p.m. on the day of the meeting.
Testify in person:
Community members may also sign up in person the evening of the meeting. Assembly meetings are held in the Mona Lisa Drexler Assembly Chambers, Juanita Helms Administration Center, 907 Terminal Street, Fairbanks.
Public testimony is generally limited to 3 minutes per person. When testifying, ask the Assembly to protect local public revenue, defend a fair valuation of TAPS, and ensure pipeline owners pay their fair share to the communities impacted by this infrastructure.