00 HOUSE BILL NO. 156 01 "An Act increasing the motor fuel tax and repealing the special tax rates on blended 02 fuels; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 43.40.010(a) is amended to read: 05 (a) There is levied a tax of 20 [EIGHT] cents a gallon on all motor fuel sold or 06 otherwise transferred within the state, except that 07 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 08 (2) the tax on motor fuel used in and on watercraft of all descriptions is 09 five cents a gallon; and 10 (3) the tax on all aviation fuel other than gasoline is three and two- 11 tenths cents a gallon [; AND 12 (4) THE TAX RATE ON MOTOR FUEL THAT IS BLENDED 13 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 14 FUEL; HOWEVER, 01 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 02 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 03 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 04 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 05 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 06 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 07 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 08 (3) OF THIS SUBSECTION; 09 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 10 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL SOLD OR 11 OTHERWISE TRANSFERRED WITHIN THE STATE IS EIGHT CENTS A 12 GALLON LESS THAN THE TAX ON OTHER MOTOR FUEL NOT 13 DESCRIBED IN (1) - (3) OF THIS SUBSECTION IF THE MOTOR FUEL 14 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 15 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 16 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 17 PRODUCED IN A FACILITY THAT PROCESSES 18 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 19 THE RATE OF TAX APPLIES TO MOTOR FUEL SOLD OR 20 TRANSFERRED THAT CONTAINS ALCOHOL THAT WAS 21 PRODUCED ONLY DURING THE FIRST FIVE YEARS OF THE 22 FACILITY'S PROCESSING OF LIGNOCELLULOSE FROM 23 WOOD; OR 24 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 25 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 26 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 27 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 28 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 29 FUEL SOLD OR TRANSFERRED THAT CONTAINS ALCOHOL 30 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 31 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 01 WASTE SEAFOOD]. 02  * Sec. 2. AS 43.40.010(b) is amended to read: 03 (b) There is levied a tax of 20 [EIGHT] cents a gallon on all motor fuel 04 consumed by a user, except that 05 (1) the tax on aviation gasoline consumed is four and seven-tenths 06 cents a gallon; 07 (2) the tax on motor fuel used in and on watercraft of all descriptions is 08 five cents a gallon; and  09 (3) the tax on all aviation fuel other than gasoline is three and two- 10 tenths cents a gallon [; AND 11 (4) THE TAX RATE ON MOTOR FUEL THAT IS BLENDED 12 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 13 FUEL; HOWEVER, 14 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 15 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 16 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 17 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 18 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 19 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 20 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 21 (3) OF THIS SUBSECTION; 22 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 23 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL CONSUMED 24 BY A USER WITHIN THE STATE IS EIGHT CENTS A GALLON LESS 25 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 26 (3) OF THIS SUBSECTION IF THE MOTOR FUEL 27 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 28 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 29 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 30 PRODUCED IN A FACILITY THAT PROCESSES 31 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 01 THE RATE OF TAX APPLIES TO MOTOR FUEL CONSUMED BY 02 A USER THAT CONTAINS ALCOHOL THAT WAS PRODUCED 03 ONLY DURING THE FIRST FIVE YEARS OF THE FACILITY'S 04 PROCESSING OF LIGNOCELLULOSE FROM WOOD; OR 05 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 06 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 07 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 08 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 09 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 10 FUEL CONSUMED BY A USER THAT CONTAINS ALCOHOL 11 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 12 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 13 WASTE SEAFOOD]. 14  * Sec. 3. AS 43.40.030(a) is amended to read: 15 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 16 operate an internal combustion engine is entitled to a refund of 18 [SIX] cents a gallon 17 if 18 (1) the tax on the motor fuel has been paid; 19 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 20 watercraft; and 21 (3) the internal combustion engine is not used in or in conjunction with 22 a motor vehicle licensed to be operated on public ways. 23  * Sec. 4. This Act takes effect July 1, 2003.