SCS CSHB 122(FIN): "An Act imposing a reporting requirement on certain sales, transfers, and consumption or uses of motor fuel, increasing the motor fuel tax on motor fuel used in and on watercraft, and authorizing payment of a portion of that tax as refunds to municipalities; and providing for an effective date."
00SENATE CS FOR CS FOR HOUSE BILL NO. 122(FIN) 01 "An Act imposing a reporting requirement on certain sales, transfers, and 02 consumption or uses of motor fuel, increasing the motor fuel tax on motor fuel 03 used in and on watercraft, and authorizing payment of a portion of that tax as 04 refunds to municipalities; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.40.010(a) is amended to read: 07 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 08 otherwise transferred within the state, except that 09 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 10 and 11 (2) [THE TAX ON MOTOR FUEL USED IN AND ON 12 WATERCRAFT OF ALL DESCRIPTIONS IS FIVE CENTS A GALLON; AND 13 (3)] the tax on all aviation fuel other than gasoline is three and two-tenths cents a gallon. 14 * Sec. 2. AS 43.40.010(b) is amended to read:
01 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 02 by a user, except that 03 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 04 a gallon; and 05 (2) [THE TAX ON MOTOR FUEL USED IN AND ON 06 WATERCRAFT OF ALL DESCRIPTIONS IS FIVE CENTS A GALLON; AND 07 (3)] the tax on all aviation fuel other than gasoline is three and two-tenths cents a gallon. 08 * Sec. 3. AS 43.40.010(c) is amended to read: 09 (c) Every dealer who sells or otherwise transfers motor fuel in the state shall 10 collect the tax at the time of sale, and remit the total tax collected, together with the 11 tax return required by AS 43.40.075, during each calendar month of each year to the 12 department by the last day of each succeeding month. Every user shall likewise remit 13 the tax accrued on motor fuel actually used by the user during each month, together 14 with the tax return required by AS 43.40.075. If the monthly tax remittance and 15 return are [IS] timely filed, one percent of the total monthly tax due, limited to a 16 maximum of $100, may be deducted and retained to cover the expense of accounting 17 and filing the monthly tax remittance and return. [AT THE TIME THE 18 REMITTANCE IS MADE, EACH DEALER OR USER SHALL SUBMIT A 19 STATEMENT TO THE DEPARTMENT SHOWING ALL FUEL WHICH THE 20 DEALER OR USER HAS DISTRIBUTED OR USED DURING THE MONTH.] 21 * Sec. 4. AS 43.40.010(f) is amended to read: 22 (f) The proceeds from the revenue from the tax on motor fuel used in or on 23 [BOATS AND] watercraft of all descriptions shall be deposited in a special watercraft 24 fuel tax account in the general fund. The legislature may appropriate from this 25 account as follows: 26 (1) an amount equal to 37.5 percent of the proceeds from the 27 revenue from the tax may be appropriated for the purpose of paying refunds to 28 municipalities under AS 43.40.150 for 29 (A) water and harbor facilities that are 30 (i) municipally owned and operated; or 31 (ii) state facilities, other than facilities of the Alaska
01 marine highway system, and that become municipally owned and 02 operated water and harbor facilities by transfer from the state; 03 appropriations may be made for the purpose of paying these 04 refunds to a municipality only after transfer of all state water and 05 harbor facilities in the municipality from the state to the 06 municipality; or 07 (B) new or expanded water and harbor facilities to be 08 constructed by a municipality, but only if the municipality has presented 09 to the commissioner of transportation and public facilities a plan for the 10 construction of new or expanded facilities in the municipality, and the 11 commissioner of transportation and public facilities finds, and certifies to 12 the commissioner of revenue, that the making of the refund payment under 13 this subparagraph will materially assist the municipality in planning, 14 designing, constructing, and operating the new or expanded water and 15 harbor facilities; and 16 (2) the balance of the proceeds from the revenue from the tax may 17 be appropriated for water and harbor facilities. 18 * Sec. 5. AS 43.40 is amended by adding a new section to read: 19 Sec. 43.40.075. TAX RETURN FILING REQUIREMENTS. (a) A person 20 subject to the motor fuel tax shall file a return, made under penalty of unsworn 21 falsification, on a form prescribed by the department, reporting 22 (1) motor fuel sold, transferred, and used in the state by category 23 defined by the department; and 24 (2) sales, transfers, and uses of motor fuel that are exempt from 25 taxation under this chapter. 26 (b) The motor fuel tax return must show the type of motor fuel sold, 27 transferred, or used, the nature of any exemption, to whom exempt fuel was sold or 28 transferred, and other information required on the form. 29 (c) The return, including all required schedules, documentation, and reports, 30 shall be filed with the tax remitted by the deadline for remittance of the motor fuel tax 31 established in AS 43.40.010(c).
01 * Sec. 6. AS 43.40 is amended by adding a new section to read: 02 ARTICLE 2. WATERCRAFT FUEL TAX REFUNDS TO MUNICIPALITIES. 03 Sec. 43.40.150. REFUNDS TO MUNICIPALITIES. (a) Except as provided 04 in (b) of this section, the commissioner shall pay from appropriations under 05 AS 43.40.010(f)(1) 06 (1) to each unified municipality and to each city located in the 07 unorganized borough the tax revenue collected in the municipality from taxes levied 08 on motor fuel used in and on watercraft of all descriptions under this chapter that is 09 deposited in the special watercraft fuel tax account and is allocable under 10 AS 43.40.010(f)(1); 11 (2) to each city located within a borough 50 percent of the amount of 12 tax revenue collected in the city from taxes levied on motor fuel used in and on 13 watercraft of all descriptions under this chapter that is deposited in the special 14 watercraft fuel tax account and is allocable under AS 43.40.010(f)(1); and 15 (3) to each borough 16 (A) the tax revenue collected in the area of the borough outside 17 cities from taxes levied on motor fuel used in and on watercraft of all 18 descriptions under this chapter that is deposited in the special watercraft fuel 19 tax account and is allocable under AS 43.40.010(f)(1); and 20 (B) 50 percent of the amount of tax revenue collected in cities 21 located within the borough from taxes levied on motor fuel used in and on 22 watercraft of all descriptions under this chapter that is deposited in the special 23 watercraft fuel tax account and is allocable under AS 43.40.010(f)(1). 24 (b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, the 25 commissioner shall pay 26 (1) to each city that is located in a borough incorporated after the 27 effective date of this Act the following percentages of the tax revenue collected in the 28 city from taxes levied on motor fuel used in and on watercraft of all descriptions under 29 this chapter that is deposited in the special watercraft fuel tax account and is allocable 30 under AS 43.40.010(f)(1): 31 (A) 90 percent of the taxes collected during the calendar year
01 in which the borough is incorporated; 02 (B) 80 percent of the taxes collected during the first calendar 03 year after the calendar year in which the borough is incorporated; 04 (C) 70 percent of the taxes collected during the second calendar 05 year after the calendar year in which the borough is incorporated; and 06 (D) 60 percent of the taxes collected during the third calendar 07 year after the calendar year in which the borough is incorporated; and 08 (2) to each borough that is incorporated after the effective date of this 09 Act the following percentages of the tax revenue collected in the cities located within 10 the borough from taxes levied on motor fuel used in and on watercraft of all 11 descriptions under this chapter that is deposited in the special watercraft fuel tax 12 account and is allocable under AS 43.40.010(f)(1): 13 (A) 10 percent of the taxes collected during the calendar year 14 in which the borough is incorporated; 15 (B) 20 percent of the taxes collected during the first calendar 16 year after the calendar year in which the borough is incorporated; 17 (C) 30 percent of the taxes collected during the second calendar 18 year after the calendar year in which the borough is incorporated; and 19 (D) 40 percent of the taxes collected during the third calendar 20 year after the calendar year in which the borough is incorporated. 21 (c) Notwithstanding the provisions of (b) of this section, a city may adopt an 22 ordinance to transfer a portion of the funds received under (b)(1) of this section to the 23 borough in which the city is located. 24 (d) If a person sells or transfers motor fuel used in or on a watercraft of any 25 description, in addition to the information required on the tax return filed under 26 AS 43.40.075, 27 (1) the person must report the location in which the motor fuel was first 28 sold or transferred; and 29 (2) if the sale or transfer occurred within a municipality other than the 30 municipality in which the motor fuel was purchased or stored, the person shall submit 31 to the department a statement disclosing the motor fuel sales or transfers that the
01 person made during the preceding calendar month outside the municipality in which 02 the motor fuel was purchased or stored. 03 (e) In this section, "tax revenue collected," as used with reference to a 04 municipality, means the revenue derived from the tax levied on motor fuel used in and 05 on watercraft of all descriptions under this chapter that is collected in the municipality 06 in which the final sale or transfer occurred. 07 * Sec. 7. This Act takes effect July 1, 1995.