CSHB 156(TRA): "An Act increasing the tax on motor fuel to be used in motor vehicles, other than aircraft and watercraft, and increasing the tax refund for motor fuel used in motor vehicles not licensed to be operated on public roadways; repealing the special tax rates on blended fuels; relating to tax refunds for government agency purchases of motor fuel; relating to the fund into which the proceeds of the motor fuel tax is paid; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 156(TRA) 01 "An Act increasing the tax on motor fuel to be used in motor vehicles, other than 02 aircraft and watercraft, and increasing the tax refund for motor fuel used in motor 03 vehicles not licensed to be operated on public roadways; repealing the special tax rates 04 on blended fuels; relating to tax refunds for government agency purchases of motor 05 fuel; relating to the fund into which the proceeds of the motor fuel tax is paid; and 06 providing 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 20 [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; 12 (2) the tax on motor fuel used in and on watercraft of all descriptions is 13 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 RATE ON MOTOR FUEL THAT IS BLENDED 04 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 05 FUEL; HOWEVER, 06 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 07 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 08 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 09 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 10 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 11 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 12 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 13 (3) OF THIS SUBSECTION; 14 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 15 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL SOLD OR 16 OTHERWISE TRANSFERRED WITHIN THE STATE IS EIGHT CENTS A 17 GALLON LESS THAN THE TAX ON OTHER MOTOR FUEL NOT 18 DESCRIBED IN (1) - (3) OF THIS SUBSECTION IF THE MOTOR FUEL 19 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 20 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 21 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 22 PRODUCED IN A FACILITY THAT PROCESSES 23 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 24 THE RATE OF TAX APPLIES TO MOTOR FUEL SOLD OR 25 TRANSFERRED THAT CONTAINS ALCOHOL THAT WAS 26 PRODUCED ONLY DURING THE FIRST FIVE YEARS OF THE 27 FACILITY'S PROCESSING OF LIGNOCELLULOSE FROM 28 WOOD; OR 29 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 30 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 31 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY
01 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 02 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 03 FUEL SOLD OR TRANSFERRED THAT CONTAINS ALCOHOL 04 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 05 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 06 WASTE SEAFOOD]. 07 * Sec. 2. AS 43.40.010(b) is amended to read: 08 (b) There is levied a tax of 20 [EIGHT] cents a gallon on all motor fuel 09 consumed by a user, except that 10 (1) the tax on aviation gasoline consumed is four and seven-tenths 11 cents a gallon; 12 (2) the tax on motor fuel used in and on watercraft of all descriptions is 13 five cents a gallon; and 14 (3) the tax on all aviation fuel other than gasoline is three and two- 15 tenths cents a gallon [; AND 16 (4) THE TAX RATE ON MOTOR FUEL THAT IS BLENDED 17 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 18 FUEL; HOWEVER, 19 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 20 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 21 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 22 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 23 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 24 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 25 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 26 (3) OF THIS SUBSECTION; 27 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 28 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL CONSUMED 29 BY A USER WITHIN THE STATE IS EIGHT CENTS A GALLON LESS 30 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 31 (3) OF THIS SUBSECTION IF THE MOTOR FUEL
01 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 02 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 03 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 04 PRODUCED IN A FACILITY THAT PROCESSES 05 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 06 THE RATE OF TAX APPLIES TO MOTOR FUEL CONSUMED BY 07 A USER THAT CONTAINS ALCOHOL THAT WAS PRODUCED 08 ONLY DURING THE FIRST FIVE YEARS OF THE FACILITY'S 09 PROCESSING OF LIGNOCELLULOSE FROM WOOD; OR 10 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 11 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 12 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 13 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 14 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 15 FUEL CONSUMED BY A USER THAT CONTAINS ALCOHOL 16 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 17 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 18 WASTE SEAFOOD]. 19 * Sec. 3. AS 43.40.010(g) is amended to read: 20 (g) The proceeds of the revenue from the tax on all motor fuels, except as 21 provided in (e), (f), and (j) of this section, shall be paid into a state fund entitled 22 "highway maintenance revenue fund" and shall be used [DEPOSITED IN A 23 SPECIAL HIGHWAY FUEL TAX ACCOUNT IN THE STATE GENERAL FUND. 24 THE LEGISLATURE MAY APPROPRIATE FUNDS FROM IT] for expenditure by 25 the Department of Transportation and Public Facilities directly or as matched with 26 available federal-aid highway money for maintenance of highways, construction of 27 highway projects and ferries included in the program provided for in AS 19.10.150, 28 including approaches, appurtenances, and related facilities and acquisition of rights-of- 29 way or easements, and other highway costs including surveys, administration, and 30 related matters. All departments of the state government authorized to spend funds 31 collected from taxes imposed by this chapter shall perform, when feasible, all
01 construction or reconstruction projects by contract after the projects have been 02 advertised for competitive bids, except that, when feasible, arrangements shall be 03 made with political subdivisions to carry out the construction or reconstruction 04 projects. If it is not feasible for the work to be performed by state engineering forces, 05 the commissioner of transportation and public facilities may contract on a professional 06 basis with private engineering firms for road design, bridge design, and services in 07 connection with surveys. If more than one private engineering firm is available for the 08 work the contracts shall be entered into on a negotiated basis. 09 * Sec. 4. AS 43.40.010(h) is amended to read: 10 (h) All motor fuel tax receipts shall be paid into the highway maintenance 11 revenue fund or into the general fund, as appropriate. If paid into the general 12 fund, the receipts shall be [AND] distributed to the proper accounts in the general 13 fund. Valid motor fuel tax refund claims shall be paid from the highway maintenance 14 revenue fund or from the related [FUEL] tax account in the general fund, as 15 appropriate. 16 * Sec. 5. AS 43.40.030(a) is amended to read: 17 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 18 operate an internal combustion engine is entitled to a refund of 18 [SIX] cents a gallon 19 if 20 (1) the tax on the motor fuel has been paid; 21 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 22 watercraft; and 23 (3) the internal combustion engine is not used in or in conjunction with 24 a motor vehicle licensed to be operated on public ways. 25 * Sec. 6. AS 43.40.035 is amended by adding a new subsection to read: 26 (c) For fuel sold to federal, state, and local government agencies for official 27 use and purchased with a government credit card, the credit card issuer may apply for 28 a refund of any motor fuel tax assessed on the purchases so long as the motor fuel tax 29 is not billed by the credit card issuer to the government agency making the purchase. 30 * Sec. 7. AS 43.40.050(c) is amended to read: 31 (c) A reseller who claims a refund or credit under AS 43.40.035(a)
01 [AS 43.40.035] shall present the refund claim to the department or to the supplier of 02 that reseller by affidavit on a form provided by the department. The claim shall 03 include the name, address, and occupation of the applicant, the nature of the business 04 of the applicant, and a description sufficient to identify the reason for the refund or 05 credit. The claim shall be supported by documentation required by the department. 06 * Sec. 8. AS 43.40.050 is amended by adding a new subsection to read: 07 (d) A credit card issuer who claims a refund under AS 43.40.035 shall present 08 the refund claim to the department on a form prescribed by the department and shall 09 provide any documentation required by the department. 10 * Sec. 9. AS 43.40.070 is amended to read: 11 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim by the 12 department, a warrant shall be drawn on the highway maintenance revenue fund or 13 from the related [FUEL] tax account in the general fund, as appropriate, in favor of 14 the applicant in the amount of the claim. 15 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CONTINGENT EFFECT. This Act takes effect only if a constitutional amendment 18 proposed by the Twenty-Third Alaska State Legislature repealing sec. 7, art. IX, Constitution 19 of the State of Alaska, is adopted by the voters under sec. 1, art. XIII, Constitution of the State 20 of Alaska. 21 * Sec. 11. This Act takes effect on the effective date of the constitutional amendment 22 specified in sec. 10 of this Act.