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.