00                      CS FOR HOUSE BILL NO. 216(CRA)                                                                    
01 "An Act relating to municipal taxation of refined petroleum products and to the bulk                                    
02 fuel revolving loan fund."                                                                                              
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.10.200(51) is amended to read:                                                                 
05                 (51)  AS 29.45.650(c), (d), (e), [AND] (f), and (i) (sales, [AND] use,                      
06       and transfer taxes [TAX]);                                                                                    
07    * Sec. 2.  AS 29.45.650(a) is amended to read:                                                                     
08            (a)  Except as provided in AS 04.21.010(c), AS 29.45.750, and in (f), [AND]                              
09       (h), and (i) of this section, a borough may levy and collect a sales tax on sales, rents,                     
10       and on services provided in the borough.  The sales tax may apply to any or all of                                
11       these sources.  Exemptions may be granted by ordinance.                                                           
12    * Sec. 3.  AS 29.45.650 is amended by adding a new subsection to read:                                             
13            (i)  A borough may not levy or collect a sales, transfer, or use tax on (1) fuel                             
14       used in turbine-powered aircraft, except for fuel that is transferred into an aircraft at a                       

01       municipal or private airport; or (2) wholesale sales or wholesale transfers of any                                
02       refined petroleum product.  This subsection applies to home rule and general law                                  
03       municipalities.                                                                                                   
04    * Sec. 4.  AS 42.45.250(e) is amended to read:                                                                     
05            (e)  Loans made from the bulk fuel revolving loan fund to one borrower in any                                
06       fiscal year are not subject to AS 42.45.060 and                                                                   
07                 (1)  may not exceed $300,000 [$200,000];                                                            
08                 (2)  shall be repaid in one year or less; and                                                           
09                 (3)  may not exceed 90 percent of the wholesale price of the fuel                                       
10       purchased.                                                                                                        
11    * Sec. 5.  Section 4, ch. 100, SLA 2002, is repealed and reenacted to read:                                        
12            Sec. 4.  AS 29.45.650(a) is amended to read:                                                                 
13            (a)  Except as provided in AS 04.21.010(c), [AS 29.45.750,] and in (f), (h), and                             
14       (i) of this section, a borough may levy and collect a sales tax on sales, rents, and on                           
15       services provided in the borough.  The sales tax may apply to any or all of these                                 
16       sources.  Exemptions may be granted by ordinance.