00CS FOR HOUSE BILL NO. 63(FIN)                                                                                           
01 "An Act relating to the motor fuel tax and to the definition of `motor fuel'                                            
02 under that tax; and providing for an effective date."                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43.40.015(d) is amended to read:                                                                    
05  (d)  A certificate of use is not required                                                                             
06   (1)  for fuel exempted under AS 43.40.100(2)(C) [, (F),] or (J) [(K)];                                             
07 and                                                                                                                     
08   (2)  for fuel exempted under AS 43.40.100(2)(I) [AS 43.40.100(2)(J)]                                               
09 other than fuel sold or transferred under this exemption to a person who is engaged in                                  
10 construction or mining activity.                                                                                        
11    * Sec. 2.  AS 43.40.100(2) is amended to read:                                                                       
12   (2)  "motor fuel" means fuel used in an engine for the propulsion of a                                               
13 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a                                  
14 stationary engine, machine, or mechanical contrivance that [WHICH] is run by an                                     

01 internal combustion motor; "motor fuel" does not include                                                                
02   (A)  fuel consigned to foreign countries;                                                                           
03   (B)  fuel sold for use in jet propulsion aircraft operating in                                                      
04 flights to foreign countries or in flights that continue from foreign countries;                                      
05   (C)  fuel used in stationary power plants operating as public                                                       
06 utility plants and generating electrical energy for sale to the general public;                                         
07   (D)  fuel used by nonprofit power associations or corporations                                                      
08 for generating electric energy for resale;                                                                              
09   (E)  fuel used by charitable institutions;                                                                          
10   (F)  [FUEL WHICH IS AT LEAST 10 PERCENT ALCOHOL                                                                     
11 BY VOLUME;                                                                                                              
12   (G)]  fuel sold or transferred between qualified dealers;                                                           
13   (G) [(H)]  fuel sold to federal, state, and local government                                                      
14 agencies for official use;                                                                                              
15   (H) [(I)]  fuel used in stationary power plants that generate                                                     
16 electrical energy for private residential consumption;                                                                  
17   (I) [(J)]  fuel used to heat private or commercial buildings or                                                   
18 facilities;                                                                                                             
19   (J) [(K)]  fuel used for other nontaxable purposes as prescribed                                                  
20 by regulations adopted by the department; [OR]                                                                          
21   (K) [(L)]  fuel used in stationary power plants of 100 kilowatts                                                
22 [KW] or less that generate electrical power for commercial enterprises not for                                          
23 resale; or                                                                                                            
24   (L)  residual fuel oil used in and on watercraft if the residual                                                   
25 fuel oil is sold or transferred in the state or consumed by a user; for                                                 
26 purposes of this subparagraph, "residual fuel oil" means the heavy refined                                              
27 hydrocarbon known as number 6 fuel oil that is the residue from crude oil                                               
28 after refined petroleum products have been extracted by the refining                                                    
29 process and that may be consumed or used only when sufficient heat is                                                   
30 provided to the oil to reduce its viscosity rated by kinetic unit and to give                                           
31 it fluid properties sufficient for pumping and combustion;                                                             

01    * Sec. 3.  Chapter 42, SLA 1994, is repealed.                                                                        
02    * Sec. 4.  This Act takes effect July 1, 1997.