HB 263: "An Act repealing the exemption from the motor fuel tax for fuel that is at least 10 percent alcohol by volume, and establishing a motor fuel tax exemption for motor fuel that is produced from the processing of lignocellulose, that is at least 10 percent alcohol by volume, and that is produced during the first five years of a facility's processing of lignocellulose from wood; and providing for an effective date."
00HOUSE BILL NO. 263 01 "An Act repealing the exemption from the motor fuel tax for fuel that is at 02 least 10 percent alcohol by volume, and establishing a motor fuel tax exemption 03 for motor fuel that is produced from the processing of lignocellulose, that is 04 at least 10 percent alcohol by volume, and that is produced during the first 05 five years of a facility's processing of lignocellulose from wood; and providing 06 for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 43.40.010(a) is amended to read: 09 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 10 otherwise transferred within the state, except that 11 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; (2) the tax on motor fuel used in 12 and on watercraft of all descriptions 13 is five cents a gallon; [AND] 14 (3) the tax on all aviation fuel other than gasoline is three and two-
01 tenths cents a gallon; and 02 (4) the tax is not due on the motor fuel sold or otherwise 03 transferred within the state that 04 (A) is at least 10 percent alcohol by volume and has been 05 produced from the processing of lignocellulose derived from wood; and 06 (B) was produced in a facility that processes lignocellulose 07 from wood and was produced only during the first five years of the 08 facility's processing of lignocellulose from wood. 09 * Sec. 2. AS 43.40.010(a), as repealed and reenacted by sec. 3, ch. 127, SLA 1994, is 10 amended to read: 11 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 12 otherwise transferred within the state, except that 13 (1) the tax on aviation gasoline is four cents a gallon; 14 (2) the tax on motor fuel used in and on watercraft of all descriptions 15 is five cents a gallon; [AND] 16 (3) the tax on all aviation fuel other than gasoline is two and one-half 17 cents a gallon; and 18 (4) the tax is not due on the motor fuel sold or otherwise 19 transferred within the state that 20 (A) is at least 10 percent alcohol by volume and has been 21 produced from the processing of lignocellulose derived from wood; and 22 (B) was produced in a facility that processes lignocellulose 23 from wood and was produced only during the first five years of the 24 facility's processing of lignocellulose from wood. 25 * Sec. 3. AS 43.40.010(b) is amended to read: 26 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 27 by a user, except that 28 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 29 a gallon; 30 (2) the tax on motor fuel used in and on watercraft of all descriptions 31 is five cents a gallon; [AND]
01 (3) the tax on all aviation fuel other than gasoline is three and two- 02 tenths cents a gallon; and 03 (4) the tax is not due on the motor fuel sold or otherwise 04 transferred within the state that 05 (A) is at least 10 percent alcohol by volume and has been 06 produced from the processing of lignocellulose derived from wood; and 07 (B) was produced in a facility that processes lignocellulose 08 from wood and was produced only during the first five years of the 09 facility's processing of lignocellulose from wood. 10 * Sec. 4. AS 43.40.010(b), as repealed and reenacted by sec. 5, ch. 127, SLA 1994, is 11 amended to read: 12 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 13 by a user, except that 14 (1) the tax on aviation gasoline consumed is four cents a gallon; 15 (2) the tax on motor fuel used in and on watercraft of all descriptions 16 is five cents a gallon; [AND] 17 (3) the tax on all aviation fuel other than gasoline is two and one-half 18 cents a gallon; and 19 (4) the tax is not due on the motor fuel sold or otherwise 20 transferred within the state that 21 (A) is at least 10 percent alcohol by volume and has been 22 produced from the processing of lignocellulose derived from wood; and 23 (B) was produced in a facility that processes lignocellulose 24 from wood and was produced only during the first five years of the 25 facility's processing of lignocellulose from wood. 26 * Sec. 5. AS 43.40.015(d) is amended to read: 27 (d) A certificate of use is not required 28 (1) for fuel exempted under AS 43.40.100(2)(C) [, (F),] or (J) [(K)]; 29 and 30 (2) for fuel exempted under AS 43.40.100(2)(I) [AS 43.40.100(2)(J)] 31 other than fuel sold or transferred under this exemption to a person who is engaged in
01 construction or mining activity. 02 * Sec. 6. AS 43.40.100(2) is amended to read: 03 (2) "motor fuel" means fuel used in an engine for the propulsion of a 04 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 05 stationary engine, machine, or mechanical contrivance that [WHICH] is run by an 06 internal combustion motor; "motor fuel" does not include 07 (A) fuel consigned to foreign countries; 08 (B) fuel sold for use in jet propulsion aircraft operating in 09 flights to foreign countries; 10 (C) fuel used in stationary power plants operating as public 11 utility plants and generating electrical energy for sale to the general public; 12 (D) fuel used by nonprofit power associations or corporations 13 for generating electric energy for resale; 14 (E) fuel used by charitable institutions; 15 (F) [FUEL WHICH IS AT LEAST 10 PERCENT ALCOHOL 16 BY VOLUME; 17 (G)] fuel sold or transferred between qualified dealers; 18 (G) [(H)] fuel sold to federal, state, and local government 19 agencies for official use; 20 (H) [(I)] fuel used in stationary power plants that generate 21 electrical energy for private residential consumption; 22 (I) [(J)] fuel used to heat private or commercial buildings or 23 facilities; 24 (J) [(K)] fuel used for other nontaxable purposes as prescribed 25 by regulations adopted by the department; or 26 (K) [(L)] fuel used in stationary power plants of 100 kilowatts 27 [KW] or less that generate electrical power for commercial enterprises not for 28 resale; 29 * Sec. 7. CONDITIONAL EFFECT OF SECTIONS 2 AND 4. Sections 2 and 4 of this 30 Act take effect only if, under sec. 6, ch. 127, SLA 1994, secs. 3 and 5, ch. 127, SLA 1994, 31 take effect because the Department of Transportation and Public Facilities, before January 1,
01 2000, increases the fee it charges under AS 02.15.090(a) for the privilege of landing aircraft 02 at rural airports, as that term is defined in 17 AAC 40.795(2), above the amount of the fee in 03 effect on January 1, 1994. 04 * Sec. 8. Sections 1, 3, and 5 - 7 of this Act take effect July 1, 1997. 05 * Sec. 9. (a) If secs. 2 and 4 of this Act take effect under sec. 7 of this Act and sec. 6, 06 ch. 127, SLA 1994, they take effect on the later of 07 (1) the 30th day after the effective date of the landing fee increase described 08 in sec. 7 of this Act; or 09 (2) the day after the day that sec. 7 of this Act becomes law. 10 (b) The commissioner of transportation and public facilities shall promptly notify the 11 commissioner of revenue, the lieutenant governor, and the revisor of statutes of a landing fee 12 increase described in sec. 7 of this Act.