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HB 443: "An Act relating to the tax on transfers or consumption of motor fuel, and repealing the exemption from that tax for motor fuel which is at least 10 percent alcohol by volume; and providing for an effective date."

00 HOUSE BILL NO. 443                                                                                                      
01 "An Act relating to the tax on transfers or consumption of motor fuel, and                                              
02 repealing the exemption from that tax for motor fuel which is at least 10 percent                                       
03 alcohol by volume; and providing for an effective date."                                                                
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 43.40.010(a) is amended to read:                                                                    
06  (a)  There is levied a tax of 22 [EIGHT] cents a gallon on all motor fuel sold                                      
07 or otherwise transferred within the state, except that                                                                  
08   (1)  the tax on aviation gasoline is four and seven-tenths cents a gallon;                                           
09   (2)  the tax on motor fuel used in and on watercraft of all descriptions                                             
10 is eight [FIVE] cents a gallon; and                                                                                   
11   (3)  the tax on all aviation fuel other than gasoline is three and two-                                              
12 tenths cents a gallon.                                                                                                  
13    * Sec. 2.  AS 43.40.010(b) is amended to read:                                                                       
14  (b)  There is levied a tax of 22 [EIGHT] cents a gallon on all motor fuel                                           
01 consumed by a user, except that                                                                                         
02   (1)  the tax on aviation gasoline consumed is four and seven-tenths cents                                            
03 a gallon;                                                                                                               
04   (2)  the tax on motor fuel used in and on watercraft of all descriptions                                             
05 is eight [FIVE] cents a gallon; and                                                                                   
06   (3)  the tax on all aviation fuel other than gasoline is three and two-                                              
07 tenths cents a gallon.                                                                                                  
08    * Sec. 3.  AS 43.40.015(d) is amended to read:                                                                       
09  (d)  A certificate of use is not required                                                                             
10   (1)  for fuel exempted under AS 43.40.100(2)(C) [, (F),] or (K); and                                                 
11   (2)  for fuel exempted under AS 43.40.100(2)(J) other than fuel sold or                                              
12 transferred under this exemption to a person who is engaged in construction or mining                                   
13 activity.                                                                                                               
14    * Sec. 4.  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 16 [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. 5.  AS 43.40 is amended by adding a new section to read:                                                      
24  Sec. 43.40.045.  TAX AND REFUND ADJUSTMENT.  (a)  The amounts in                                                      
25 AS 43.40.010(a) and (b) and 43.40.030(a) change, as provided in this section,                                           
26 according to and to the extent of changes in the Consumer Price Index for all urban                                     
27 consumers for the Anchorage Metropolitan Area compiled by the Bureau of Labor                                           
28 Statistics, United States Department of Labor.  The index for January of 1997 is the                                    
29 reference base index.                                                                                                   
30  (b)  The amounts change on July 1 of each even-numbered year in an amount                                             
31 equal to the percentage of change, calculated to the nearest whole percentage point,                                    
01 between the index for January of that year and the most recent index used to change                                     
02 the amounts in AS 43.40.010(a) and (b) and 43.40.030(a).  However, the amounts do                                       
03 not change if the amounts required by this section are those currently in effect as a                                   
04 result of earlier application of this section.                                                                          
05  (c)  If the index is revised, the percentage of change is calculated on the basis                                     
06 of the revised index.  If a revision of the index changes the reference base index, a                                   
07 revised reference base index is determined by multiplying the reference base index                                      
08 applicable by the rebasing factor furnished by the United States Bureau of Labor                                        
09 Statistics.  If the index is superseded, the index referred to in this section is the one                               
10 represented by the Bureau of Labor Statistics as reflecting most accurately changes in                                  
11 the purchasing power of the dollar for Alaskan consumers.                                                               
12  (d)  At the time of a change in the amount of tax required by (b) of this                                             
13 section, the department shall promptly give public notice of the change.  The                                           
14 department shall also provide notification of a change in amounts required under (b)                                    
15 of this section to all dealers that collect the tax levied by AS 43.40.010.                                             
16    * Sec. 6.  AS 43.40.100(2)(F) is repealed.                                                                           
17    * Sec. 7.  This Act takes effect October 1, 1996.