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STATE, DEPT. OF REVENUE v. ANCHORAGE

No. S-11011.

104 P.3d 120 (2004)

STATE of Alaska, DEPARTMENT OF REVENUE, Appellant, v. MUNICIPALITY OF ANCHORAGE d/b/a Municipal Light & Power Department, a municipality of the State of Alaska, Appellee.

Supreme Court of Alaska.

December 23, 2004.

Attorney(s) appearing for the Case

Martin T. Schultz, Assistant Attorney General, Anchorage, and Gregg D. Renkes, Attorney General, Juneau, for Appellant.

Roger R. Kemppel and John Andrew Leman, Kemppel, Huffman and Ellis, P.C., Anchorage, for Appellee.

Before: BRYNER, Chief Justice, MATTHEWS, EASTAUGH, FABE, and CARPENETI, Justices.

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...

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