HB 278: "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."
00HOUSE BILL NO. 278 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 (2) [THE TAX ON MOTOR FUEL USED IN AND ON 11 WATERCRAFT OF ALL DESCRIPTIONS IS FIVE CENTS A GALLON; AND 12 (3)] the tax on all aviation fuel other than gasoline is three and two- 13 tenths cents a gallon. 14 * Sec. 2. AS 43.40.010(a), as repealed and reenacted by sec. 3, ch. 127, SLA 1994, is
01 amended to read: 02 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 03 otherwise transferred within the state, except that 04 (1) the tax on aviation gasoline is four cents 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 two and one-half 08 cents a gallon. 09 * Sec. 3. AS 43.40.010(b) is amended to read: 10 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 11 by a user, except that 12 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 13 a gallon; and 14 (2) [THE TAX ON MOTOR FUEL USED IN AND ON 15 WATERCRAFT OF ALL DESCRIPTIONS IS FIVE CENTS A GALLON; AND 16 (3)] the tax on all aviation fuel other than gasoline is three and two- 17 tenths cents a gallon. 18 * Sec. 4. AS 43.40.010(b), as repealed and reenacted by sec. 5, ch. 127, SLA 1994, is 19 amended to read: 20 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 21 by a user, except that 22 (1) the tax on aviation gasoline consumed is four cents a gallon; and 23 (2) [THE TAX ON MOTOR FUEL USED IN AND ON 24 WATERCRAFT OF ALL DESCRIPTIONS IS FIVE CENTS A GALLON; AND 25 (3)] the tax on all aviation fuel other than gasoline is two and one-half 26 cents a gallon. 27 * Sec. 5. AS 43.40.010(c) is amended to read: 28 (c) Every dealer who sells or otherwise transfers motor fuel in the state shall 29 collect the tax at the time of sale, and remit the total tax collected, together with the 30 tax return required by AS 43.40.075, during each calendar month of each year to the 31 department by the last day of each succeeding month. Every user shall likewise remit
01 the tax accrued on motor fuel actually used by the user during each month, together 02 with the tax return required by AS 43.40.075. If the monthly tax remittance and 03 return are [IS] timely filed, one percent of the total monthly tax due, limited to a 04 maximum of $100, may be deducted and retained to cover the expense of accounting 05 and filing the monthly tax remittance and return. [AT THE TIME THE 06 REMITTANCE IS MADE, EACH DEALER OR USER SHALL SUBMIT A 07 STATEMENT TO THE DEPARTMENT SHOWING ALL FUEL WHICH THE 08 DEALER OR USER HAS DISTRIBUTED OR USED DURING THE MONTH.] 09 * Sec. 6. AS 43.40.010(f) is amended to read: 10 (f) The proceeds from the revenue from the tax on motor fuel used in or on 11 [BOATS AND] watercraft of all descriptions shall be deposited in a special watercraft 12 fuel tax account in the general fund. The legislature may appropriate from this 13 account as follows: 14 (1) an amount equal to 37.5 percent of the proceeds from the 15 revenue from the tax may be appropriated for the purpose of paying refunds 16 under AS 43.40.150 to municipalities 17 (A) that, during the state fiscal year in which the refund is 18 payable, expend or propose to expend an amount at least equal to the 19 amount received by the municipality as a refund under AS 43.40.150 for 20 water and harbor facilities that are 21 (i) municipally owned and operated; or 22 (ii) state facilities, other than facilities of the Alaska 23 marine highway system, and that become municipally owned and 24 operated water and harbor facilities by transfer from the state; 25 appropriations may be made for the purpose of paying these 26 refunds to a municipality only after transfer of all state water and 27 harbor facilities in the municipality from the state to a 28 municipality; or 29 (B) for new or expanded water and harbor facilities to be 30 constructed by a municipality, but only if the municipality has presented 31 to the commissioner of transportation and public facilities a plan for the
01 construction of new or expanded facilities in the municipality, and the 02 commissioner of transportation and public facilities finds, and certifies to 03 the commissioner of revenue, that the making of the refund payment under 04 this subparagraph will materially assist the municipality in planning, 05 designing, constructing, and operating the new or expanded water and 06 harbor facilities; and 07 (2) the balance of the proceeds from the revenue from the tax may 08 be appropriated for water and harbor facilities. 09 * Sec. 7. AS 43.40 is amended by adding a new section to read: 10 Sec. 43.40.075. Tax return filing requirements. (a) A person subject to the 11 motor fuel tax shall file a return, made under penalty of unsworn falsification, on a 12 form prescribed by the department, reporting 13 (1) motor fuel sold, transferred, and used in the state by category 14 defined by the department; and 15 (2) sales, transfers, and uses of motor fuel that are exempt from 16 taxation under this chapter. 17 (b) The motor fuel tax return must show the type of motor fuel sold, 18 transferred, or used, the nature of any exemption, to whom exempt fuel was sold or 19 transferred, and other information required on the form. 20 (c) The return, including all required schedules, documentation, and reports, 21 shall be filed with the tax remitted by the deadline for remittance of the motor fuel tax 22 established in AS 43.40.010(c). 23 * Sec. 8. AS 43.40 is amended by adding a new section to read: 24 Article 2. Watercraft Fuel Tax Refunds to Municipalities. 25 Sec. 43.40.150. Refunds to municipalities. (a) Except as provided in (b) of 26 this section, the commissioner shall pay from appropriations under AS 43.40.010(f)(1) 27 (1) to each unified municipality, to each city located in the unorganized 28 borough, and to each city located in a borough if the borough does not exercise 29 responsibility for water and harbor facilities on an areawide or nonareawide basis the 30 tax revenue collected in the municipality from taxes levied on motor fuel used in and 31 on watercraft of all descriptions under this chapter that is deposited in the special
01 watercraft fuel tax account and is allocable under AS 43.40.010(f)(1); 02 (2) to each city located within a borough that exercises responsibility 03 for water and harbor facilities on an areawide basis, or exercises that responsibility on 04 a nonareawide basis and all water and harbor facilities within cities within the borough 05 are owned and operated by cities, 50 percent of the amount of tax revenue collected 06 in the city from taxes levied on motor fuel used in and on watercraft of all descriptions 07 under this chapter that is deposited in the special watercraft fuel tax account and is 08 allocable under AS 43.40.010(f)(1); and 09 (3) to each borough that exercises responsibility for water and harbor 10 facilities on an areawide basis, or exercises that responsibility on a nonareawide basis 11 and all water and harbor facilities within cities within the borough are owned and 12 operated by cities, 13 (A) the tax revenue collected in the area of the borough outside 14 cities from taxes levied on motor fuel used in and on watercraft of all 15 descriptions under this chapter that is deposited in the special watercraft fuel 16 tax account and is allocable under AS 43.40.010(f)(1); and 17 (B) 50 percent of the amount of tax revenue collected in cities 18 located within the borough from taxes levied on motor fuel used in and on 19 watercraft of all descriptions under this chapter that is deposited in the special 20 watercraft fuel tax account and is allocable under AS 43.40.010(f)(1). 21 (b) Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, the 22 commissioner shall pay 23 (1) to each city that is located in a borough incorporated after the 24 effective date of this Act the following percentages of the tax revenue collected in the 25 city from taxes levied on motor fuel used in and on watercraft of all descriptions under 26 this chapter that is deposited in the special watercraft fuel tax account and is allocable 27 under AS 43.40.010(f)(1): 28 (A) 90 percent of the taxes collected during the calendar year 29 in which the borough is incorporated; 30 (B) 80 percent of the taxes collected during the first calendar 31 year after the calendar year in which the borough is incorporated;
01 (C) 70 percent of the taxes collected during the second calendar 02 year after the calendar year in which the borough is incorporated; and 03 (D) 60 percent of the taxes collected during the third calendar 04 year after the calendar year in which the borough is incorporated; and 05 (2) to each borough that is incorporated after the effective date of this 06 Act the following percentages of the tax revenue collected in the cities located within 07 the borough from taxes levied on motor fuel used in and on watercraft of all 08 descriptions under this chapter that is deposited in the special watercraft fuel tax 09 account and is allocable under AS 43.40.010(f)(1): 10 (A) 10 percent of the taxes collected during the calendar year 11 in which the borough is incorporated; 12 (B) 20 percent of the taxes collected during the first calendar 13 year after the calendar year in which the borough is incorporated; 14 (C) 30 percent of the taxes collected during the second calendar 15 year after the calendar year in which the borough is incorporated; and 16 (D) 40 percent of the taxes collected during the third calendar 17 year after the calendar year in which the borough is incorporated. 18 (c) Notwithstanding the provisions of (b) of this section, a city may adopt an 19 ordinance to transfer a portion of the funds received under (b)(1) of this section to the 20 borough in which the city is located. 21 (d) If a person sells or transfers motor fuel used in or on a watercraft of any 22 description, in addition to the information required on the tax return filed under 23 AS 43.40.075, 24 (1) the person must report the location in which the motor fuel was first 25 sold or transferred; and 26 (2) if the sale or transfer occurred within a municipality other than the 27 municipality in which the motor fuel was purchased or stored, the person shall submit 28 to the department a statement disclosing the motor fuel sales or transfers that the 29 person made during the preceding calendar month outside the municipality in which 30 the motor fuel was purchased or stored. 31 (e) In this section, "tax revenue collected," as used with reference to a
01 municipality, means the revenue derived from the tax levied on motor fuel used in and 02 on watercraft of all descriptions under this chapter that is collected in the municipality 03 in which the final sale or transfer occurred. 04 * Sec. 9. CONDITIONAL EFFECT OF SECTIONS 2 AND 4. Sections 2 and 4 of this 05 Act take effect only if, under sec. 6, ch. 127, SLA 1994, secs. 3 and 5, ch. 127, SLA 1994, 06 take effect because the Department of Transportation and Public Facilities, before January 1, 07 2000, increases the fee it charges under AS 02.15.090(a) for the privilege of landing aircraft 08 at rural airports, as that term is defined in 17 AAC 40.795(2), above the amount of the fee in 09 effect on January 1, 1994. 10 * Sec. 10. (a) If secs. 2 and 4 of this Act take effect under sec. 9 of this Act and sec. 6, 11 ch. 127, SLA 1994, they take effect on the later of 12 (1) the 30th day after the effective date of the landing fee increase described 13 in sec. 9 of this Act; or 14 (2) the day after the day that sec. 9 of this Act becomes law. 15 (b) The commissioner of transportation and public facilities shall promptly notify the 16 commissioner of revenue, the lieutenant governor, and the revisor of statutes of a landing fee 17 increase described in sec. 9 of this Act. 18 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect July 1, 1997.