00             HOUSE CS FOR CS FOR SENATE BILL NO. 106(FIN) am H                                                          
01 "An Act relating to tires."                                                                                             
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 43.98 is amended by adding a new section to read:                                                 
04            Sec. 43.98.025.  Tire fees.  (a)  A fee of $2.50 a tire is imposed on the retail                           
05       sale of new tires for motor vehicles designed for use on a highway.                                               
06            (b)  In addition to the fee imposed under (a) of this section, a fee of $5 a tire is                         
07       imposed on the retail sale in the state on or after July 1, 2004, of tires for motor                              
08       vehicles designed for use on a highway that are studded with metal studs or spikes                                
09       weighing more than 1.1 grams each embedded in the periphery of the tire surface and                               
10       protruding beyond the tread surface of the tire, or on the installation in the state on or                        
11       after July 1, 2004, for a fee of metal studs or spikes weighing more than 1.1 grams                               
12       each on a tire for a motor vehicle designed for use on a highway.                                                 
13            (c)  A seller shall add the amount of the fees imposed by this section to the                                
14       total price of the tire or service subject to the fees, and the fees shall be stated                              
15       separately on any sales receipt, invoice, or other record of the sale or other transfer or                        

01       of the installation of studs.  That portion of the total price of the tire or service                             
02       consisting of the fees imposed by this section is not subject to a sales tax or a use tax                         
03       imposed by the state or a subdivision of the state.                                                               
04            (d)  A seller shall collect the fees from the purchaser.  A seller shall file a                              
05       return on a form prescribed by the department and remit the fees collected to the                                 
06       department not later than 30 days following the last day of the calendar quarter of the                           
07       sale or installation.                                                                                             
08            (e)  A seller remitting the fees collected under this section to the department                              
09       within 30 days after the last day of the preceding calendar quarter may retain five                               
10       percent of the amount collected, not to exceed $900 a quarter, to cover expenses                                  
11       associated with collecting and remitting the fees.                                                                
12            (f)  The provisions of AS 43.05 and AS 43.10 apply to this section.                                          
13            (g)  The fees imposed in this section do not apply to the following tires and                                
14       services if the purchaser provides the seller with a certificate of use on a form                                 
15       prescribed by the department:                                                                                     
16                 (1)  tires or services sold to federal, state, or local government agencies                             
17       for official use; or                                                                                              
18                 (2)  tires for resale.                                                                                  
19            (h)  In this section,                                                                                        
20                 (1)  "highway" has the meaning given in AS 28.40.100;                                                   
21                 (2)  "motor vehicle" has the meaning given in AS 28.40.100;                                             
22                 (3)  "seller" means a seller of tires or a person who installs studs on                                 
23       motor vehicle tires for a fee.