Alaska residents collectively own the minerals in Alaska. This is what effectively is happening: 

The mineral extraction companies, primarily oil, pay the collective for the oil. Right off the top, the state taxes those earnings 50%, the remaining earnings go into an interest bearing account collectively owned by the Residents. The residents get a dividend from a 5 year average of the interests. Now the state taxes you again, ~50% of those earnings 1250$. 

Imagine this, you own a factory, you rent the factory out to a company making widgets, for rent you get a cut of the profits of the widget. State taxes you 50% of that profit. You wisely invest the remaining 50% and cash out on the interest from that investment. Now the state taxes you another 50% when you collect that interest. The state is taxing you 50% of everything related to your widget earnings. Meanwhile the state gives your renter a cut of your earnings, "tax credit". 

Redistribution of your wealth to gov and company!