00                            HOUSE BILL NO. 340                                                                          
01 "An Act relating to municipal sales or use taxes on motor fuels; and providing for an                                   
02 effective date."                                                                                                        
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), (f), (i), (j), [AND] (k), and (l) (sales and                       
06       use tax);                                                                                                         
07    * Sec. 2. AS 29.10.200(52) is amended to read:                                                                     
08                 (52)  AS 29.45.700(d), (e), [AND] (g), and (h) (sales and use tax);                                 
09    * Sec. 3. AS 29.45.650(a) is amended to read:                                                                      
10            (a)  Except as provided in AS 04.21.010(c), AS 29.45.750, and [IN (f), (h), (i),                             
11       AND (j) OF] this section, a borough may levy and collect a sales tax on sales, rents,                             
12       and on services provided in the borough. The sales tax may apply to any or all of these                           
13       sources. Notwithstanding other statutes, exemptions may be granted by ordinance. A                                
14       borough may wholly or partially exempt a source from a borough sales tax that is                                  

01       taxed by a city in that borough under AS 29.45.700.                                                               
02    * Sec. 4. AS 29.45.650 is amended by adding a new subsection to read:                                              
03            (l)  A borough may levy and collect a sales or use tax under (i) or (j)(1) of this                           
04       section on gasoline or diesel fuel of the type used in cars, trucks, and other motor                              
05       vehicles that are driven on roads only at a rate that does not exceed eight cents a                               
06       gallon. Rates of sales or use taxes on motor fuel under this subsection do not affect                             
07       rates of sales or use taxes levied on other sources. This subsection applies to home rule                         
08       and general law municipalities.                                                                                   
09    * Sec. 5. AS 29.45.700(a) is amended to read:                                                                      
10            (a)  A city in a borough that levies and collects areawide sales and use taxes                               
11       may levy sales and use taxes on all sources taxed by the borough in the manner                                    
12       provided for boroughs. Except as provided in [(d) AND (e) OF] this section, the                                   
13       assembly may by ordinance authorize a city to levy and collect sales and use taxes on                             
14       other sources.                                                                                                    
15    * Sec. 6. AS 29.45.700 is amended by adding a new subsection to read:                                              
16            (h)  A city may levy and collect a sales or use tax under (e) or (f)(1) of this                              
17       section on gasoline or diesel fuel of the type used in cars, trucks, and other motor                              
18       vehicles that are driven on roads only at a rate that does not exceed eight cents a                               
19       gallon. Rates of sales or use taxes on motor fuel under this subsection do not affect                             
20       rates of sales or use taxes levied on other sources. This subsection applies to home rule                         
21       and general law cities.                                                                                           
22    * Sec. 7. This Act takes effect January 1, 2011.