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SB 25: "An Act relating to the motor fuel tax; relating to the disposition of revenue from the motor fuel tax; relating to a transportation maintenance fund; and providing for an effective date."

00                             SENATE BILL NO. 25                                                                          
01 "An Act relating to the motor fuel tax; relating to the disposition of revenue from the                                 
02 motor fuel tax; relating to a transportation maintenance fund; and providing for an                                     
03 effective date."                                                                                                        
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 29.60.800(a) is amended to read:                                                                   
06 (a)  There is established the harbor facility grant fund consisting of money                                            
07 appropriated to the fund. Each fiscal year, the legislature may appropriate money to                                    
08 the fund from the watercraft fuel tax account (AS 43.40.010(f)) in the transportation                               
09 maintenance fund (AS 43.40.040) and from the fisheries business tax collected under                                 
10       AS 43.75.015 after payments to municipalities are made under AS 43.75.130. The                                    
11       legislature may make other appropriations to the fund. The legislature may appropriate                            
12       to the fund income earned on money in the fund.                                                                   
13 * Sec. 2. AS 43.40.010(a) is amended to read:                                                                         
14            (a)  In addition to the surcharge levied under AS 43.40.005, there is levied a                               
01       tax of 16 [EIGHT] cents a gallon on all motor fuel sold or otherwise transferred within                       
02       the state, except that                                                                                            
03                 (1)  the tax on aviation gasoline is nine and four-tenths [FOUR AND                                 
04       SEVEN-TENTHS] cents a gallon;                                                                                     
05                 (2)  the tax on motor fuel used in and on watercraft of all descriptions is                             
06       10 [FIVE] cents a gallon;                                                                                     
07                 (3)  the tax on all aviation fuel other than gasoline is six and four-                              
08       tenths [THREE AND TWO-TENTHS] cents a gallon; and                                                             
09                 (4)  the tax rate on motor fuel that is blended with alcohol is the same                                
10 tax rate a gallon as other motor fuel; however, in an area and during the months in                                     
11 which fuel containing alcohol is required to be sold, transferred, or used in an effort to                              
12 attain air quality standards for carbon monoxide as required by federal or state law or                                 
13 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon                               
14       less than the tax on other motor fuel not described in (1) - (3) of this subsection.                              
15    * Sec. 3. AS 43.40.010(a), as amended by sec. 2 of this Act, is amended to read:                                   
16 (a)  In addition to the surcharge levied under AS 43.40.005, there is levied a                                          
17 tax of 24 [16] cents a gallon on all motor fuel sold or otherwise transferred within the                            
18       state, except that                                                                                                
19 (1)  the tax on aviation gasoline is 14.1 [NINE AND FOUR-TENTHS]                                                    
20       cents a gallon;                                                                                                   
21 (2)  the tax on motor fuel used in and on watercraft of all descriptions is                                             
22       15 [10] cents a gallon;                                                                                       
23 (3)  the tax on all aviation fuel other than gasoline is nine and six-                                              
24       tenths [SIX AND FOUR-TENTHS] cents a gallon; and                                                              
25 (4)  the tax rate on motor fuel that is blended with alcohol is the same                                                
26 tax rate a gallon as other motor fuel; however, in an area and during the months in                                     
27 which fuel containing alcohol is required to be sold, transferred, or used in an effort to                              
28 attain air quality standards for carbon monoxide as required by federal or state law or                                 
29 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon                               
30       less than the tax on other motor fuel not described in (1) - (3) of this subsection.                              
31    * Sec. 4. AS 43.40.010(b) is amended to read:                                                                      
01            (b)  In addition to the surcharge levied under AS 43.40.005, there is levied a                               
02       tax of 16 [EIGHT] cents a gallon on all motor fuel consumed by a user, except that                            
03                 (1)  the tax on aviation gasoline consumed is nine and four-tenths                                  
04       [FOUR AND SEVEN-TENTHS] cents a gallon;                                                                           
05                 (2)  the tax on motor fuel used in and on watercraft of all descriptions is                             
06       10 [FIVE] cents a gallon;                                                                                     
07                 (3)  the tax on all aviation fuel other than gasoline is six and four-                              
08       tenths [THREE AND TWO-TENTHS] cents a gallon; and                                                             
09                 (4)  the tax rate on motor fuel that is blended with alcohol is the same                                
10 tax rate a gallon as other motor fuel; however, in an area and during the months in                                     
11 which fuel containing alcohol is required to be sold, transferred, or used in an effort to                              
12 attain air quality standards for carbon monoxide as required by federal or state law or                                 
13 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon                               
14       less than the tax on other motor fuel not described in (1) - (3) of this subsection.                              
15    * Sec. 5. AS 43.40.010(b), as amended by sec. 4 of this Act, is amended to read:                                   
16 (b)  In addition to the surcharge levied under AS 43.40.005, there is levied a                                          
17       tax of 24 [16] cents a gallon on all motor fuel consumed by a user, except that                               
18                 (1)  the tax on aviation gasoline consumed is 14.1 [NINE AND FOUR-                                  
19       TENTHS] cents a gallon;                                                                                           
20 (2)  the tax on motor fuel used in and on watercraft of all descriptions is                                             
21       15 [10] cents a gallon;                                                                                       
22 (3)  the tax on all aviation fuel other than gasoline is nine and six-                                              
23       tenths [SIX AND FOUR-TENTHS] cents a gallon; and                                                              
24 (4)  the tax rate on motor fuel that is blended with alcohol is the same                                                
25 tax rate a gallon as other motor fuel; however, in an area and during the months in                                     
26 which fuel containing alcohol is required to be sold, transferred, or used in an effort to                              
27 attain air quality standards for carbon monoxide as required by federal or state law or                                 
28 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon                               
29       less than the tax on other motor fuel not described in (1) - (3) of this subsection.                              
30    * Sec. 6. AS 43.40.010(e) is amended to read:                                                                      
31 (e)  Sixty percent of the proceeds of the revenue from the motor fuel taxes on                                          
01 aviation fuel, excluding the amount determined to have been spent by the state in its                                   
02 collection, shall be refunded to a municipality owning and operating or leasing and                                     
03 operating an airport in the proportion that the revenue was collected at the municipal                                  
04 airport. All other proceeds of the motor fuel taxes on aviation fuel shall be paid into a                               
05 special aviation fuel tax account in the general fund. The legislature may appropriate                                  
06 [FUNDS] from this account for direct capital, [OR] operating, or maintenance costs                          
07       of airport infrastructure [AIRPORTS].                                                                         
08    * Sec. 7. AS 43.40.010(f) is amended to read:                                                                      
09 (f)  The proceeds from the revenue from the tax on motor fuel used in boats                                             
10 and watercraft of all descriptions shall be deposited in a special watercraft fuel tax                                  
11 account in the transportation maintenance [GENERAL] fund. The legislature may                                       
12 appropriate from this account for direct capital, operating, or maintenance costs of                                
13       water and harbor infrastructure and facilities.                                                               
14    * Sec. 8. AS 43.40.010(g) is amended to read:                                                                      
15 (g)  The proceeds of the revenue from the tax on all motor fuels, except as                                             
16 provided in (e), (f) and (j) of this section, shall be deposited in a special highway fuel                              
17 tax account in the transportation maintenance [STATE GENERAL] fund. The                                             
18 legislature may appropriate from the account [IT] for expenditure by the Department                                 
19 of Transportation and Public Facilities directly or as matched with available federal-                                  
20 aid highway money for direct capital, operating, or maintenance costs of highways                               
21 and highway infrastructure, construction of highway projects and ferries included in                                
22 the program provided for in AS 19.10.150, including approaches, appurtenances and                                       
23 related facilities and acquisition of rights-of-way, [or] easements, or surveys [AND                            
24 OTHER HIGHWAY COSTS INCLUDING SURVEYS, ADMINISTRATION, AND                                                              
25 RELATED MATTERS]. All departments of the state government authorized to spend                                           
26 funds collected from taxes imposed by this chapter shall perform, when feasible, all                                    
27 construction or reconstruction projects by contract after the projects have been                                        
28 advertised for competitive bids, except that, when feasible, arrangements shall be                                      
29 made with political subdivisions to carry out the construction or reconstruction                                        
30 projects. If it is not feasible for the work to be performed by state engineering forces,                               
31 the commissioner of transportation and public facilities may contract on a professional                                 
01       basis with private engineering firms for road design, bridge design, and services in                              
02       connection with surveys. If more than one private engineering firm is available for the                           
03       work the contracts shall be entered into on a negotiated basis.                                                   
04    * Sec. 9. AS 43.40.010(h) is amended to read:                                                                      
05 (h)  All motor fuel tax receipts shall be paid into the general fund and                                                
06 distributed to the proper accounts in the general fund, and for receipts under (f), (g),                            
07 and (j) of this section, into the proper accounts in the transportation maintenance                                 
08 fund. Valid motor fuel tax refund claims shall be paid from the highway fuel tax                                    
09       account in the transportation maintenance [GENERAL] fund.                                                     
10    * Sec. 10. AS 43.40.010(j) is amended to read:                                                                     
11 (j)  The proceeds from the tax on motor fuel used in snow vehicles and, unless                                          
12 a tax refund is applied for under AS 43.40.050(a), other internal combustion engines                                    
13 not used in or in conjunction with a motor vehicle licensed to be operated on public                                    
14 ways shall be deposited in a special nonpublic highway use account in the                                               
15 transportation maintenance [GENERAL] fund. The legislature may appropriate                                          
16 from this account to the Department of Transportation and Public Facilities for trail                                   
17       staking and shelter construction and maintenance.                                                                 
18    * Sec. 11. AS 43.40.030(a) is amended to read:                                                                     
19 (a)  Except as specified in AS 43.40.010(j), a person who uses motor fuel to                                            
20 operate an internal combustion engine is entitled to a motor fuel tax refund of 12 [SIX]                            
21       cents a gallon if                                                                                                 
22                 (1)  the tax on the motor fuel has been paid;                                                           
23 (2)  the motor fuel is not aviation fuel, or motor fuel used in or on                                                   
24       watercraft; and                                                                                                   
25 (3)  the internal combustion engine is not used in or in conjunction with                                               
26       a motor vehicle licensed to be operated on public ways.                                                           
27    * Sec. 12. AS 43.40.030(a), as amended by sec. 11 of this, Act is amended to read:                                 
28 (a)  Except as specified in AS 43.40.010(j), a person who uses motor fuel to                                            
29 operate an internal combustion engine is entitled to a motor fuel tax refund of 18 [SIX]                            
30       cents a gallon if                                                                                                 
31                 (1)  the tax on the motor fuel has been paid;                                                           
01                 (2)  the motor fuel is not aviation fuel, or motor fuel used in or on                                   
02       watercraft; and                                                                                                   
03                 (3)  the internal combustion engine is not used in or in conjunction with                               
04       a motor vehicle licensed to be operated on public ways.                                                           
05    * Sec. 13. AS 43.40 is amended by adding a new section to read:                                                    
06 Sec. 43.40.040 Transportation maintenance fund. (a) There is established in                                           
07 the general fund the transportation maintenance fund consisting of money                                                
08 appropriated to the fund and the accounts set out in (b) of this section. The legislature                               
09       may appropriate from this fund for purposes consistent with this chapter.                                         
10            (b)  The transportation maintenance fund includes the                                                        
11                 (1)  special highway fuel tax account (AS 43.40.010(g));                                                
12                 (2)  special nonpublic highway use account (AS 43.40.010(j));                                           
13                 (3)  special watercraft fuel tax account (AS 43.40.010(f)).                                             
14 (c)  The department may adopt regulations necessary to implement the                                                    
15       transportation maintenance fund in a manner consistent with state and federal law.                                
16            (d)  Nothing in this section creates a dedicated fund.                                                       
17    * Sec. 14. AS 43.40.070(a) is amended to read:                                                                     
18 (a)  Upon approval of a refund claim of the motor fuel tax by the department, a                                         
19 disbursement shall be made from the highway fuel tax account in the transportation                                  
20       maintenance [GENERAL] fund in favor of the applicant in the amount of the claim.                              
21    * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to                         
22 read:                                                                                                                   
23 APPLICABILITY. (a) AS 43.40.010(a), as amended by sec. 2 of this Act, applies to                                        
24 motor fuel sold or transferred in the state on or after the effective date of sec. 2 of this Act.                       
25 (b)  AS 43.40.010(b), as amended by sec. 4 of this Act, applies to motor fuel                                           
26 consumed by a user on or after the effective date of sec. 4 of this Act.                                                
27 (c)  AS 43.40.030(a), as amended by sec. 10 of this Act, applies to a motor fuel tax                                    
28 refund on motor fuel used on or after the effective date of sec. 10 of this Act.                                        
29    * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to                         
30 read:                                                                                                                   
31 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations                                                
01 necessary to implement the changes made by this Act. The regulations take effect under                                  
02 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law                                   
03 implemented by the regulation.                                                                                          
04    * Sec. 17. Section 16 of this Act takes effect immediately under AS 01.10.070(c).                                  
05    * Sec. 18. Sections 3, 5, and 12 of this Act take effect July 1, 2018.                                             
06    * Sec. 19. Except as provided in secs. 17 and 18 of this Act, this Act takes effect July 1,                        
07 2017.