00 CS FOR HOUSE BILL NO. 263(TRA) 01 "An Act repealing the exemption from the motor fuel tax for fuel that is at 02 least 10 percent alcohol by volume; and setting a differential levy for a tax on 03 motor fuel that is produced from the processing of lignocellulose, that is at 04 least 10 percent alcohol by volume, and that is produced during the first five 05 years of a facility's processing of lignocellulose from wood; and providing for 06 an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 43.40.010(a) is amended to read: 09  (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 10 otherwise transferred within the state, except that 11  (1) the tax on aviation gasoline is four and seven-tenths cents a gallon;  12  (2) the tax on motor fuel used in and on watercraft of all descriptions 13 is five cents a gallon; [AND] 14  (3) the tax on all aviation fuel other than gasoline is three and two- 01 tenths cents a gallon; and 02  (4) the tax rate on motor fuel that is blended with alcohol is the 03 same tax rate a gallon as other motor fuel; however, the tax on motor fuel sold 04 or otherwise transferred within the state that is at least 10 percent alcohol by 05 volume, has been produced from the processing of lignocellulose derived from 06 wood, and was produced in a facility that processes lignocellulose from wood is 07 eight cents a gallon less than the tax on other motor fuel, but this reduction in the 08 rate of tax applies to motor fuel sold or transferred that was produced only 09 during the first five years of the facility's processing of lignocellulose from wood. 10 * Sec. 2. AS 43.40.010(a), as repealed and reenacted by sec. 3, ch. 127, SLA 1994, is 11 amended to read: 12  (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 13 otherwise transferred within the state, except that 14  (1) the tax on aviation gasoline is four cents a gallon; 15  (2) the tax on motor fuel used in and on watercraft of all descriptions 16 is five cents a gallon; [AND] 17  (3) the tax on all aviation fuel other than gasoline is two and one-half 18 cents a gallon; and 19  (4) the tax rate on motor fuel that is blended with alcohol is the 20 same tax rate a gallon as other motor fuel; however, the tax on motor fuel sold 21 or otherwise transferred within the state that is at least 10 percent alcohol by 22 volume, has been produced from the processing of lignocellulose derived from 23 wood, and was produced in a facility that processes lignocellulose from wood is 24 eight cents a gallon less than the tax on other motor fuel, but this reduction in the 25 rate of tax applies to motor fuel sold or transferred that was produced only 26 during the first five years of the facility's processing of lignocellulose from wood. 27 * Sec. 3. AS 43.40.010(b) is amended to read: 28  (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 29 by a user, except that 30  (1) the tax on aviation gasoline consumed is four and seven-tenths cents 31 a gallon; 01  (2) the tax on motor fuel used in and on watercraft of all descriptions 02 is five cents a gallon; [AND] 03  (3) the tax on all aviation fuel other than gasoline is three and two- 04 tenths cents a gallon; and 05  (4) the tax rate on motor fuel that is blended with alcohol is the 06 same tax rate a gallon as other motor fuel; however, the tax on motor fuel 07 consumed or used within the state that is at least 10 percent alcohol by volume, 08 has been produced from the processing of lignocellulose derived from wood, and 09 was produced in a facility that processes lignocellulose from wood is eight cents 10 a gallon less than the tax on other motor fuel, but this reduction in the rate of tax 11 applies to motor fuel sold or transferred that was produced only during the first 12 five years of the facility's processing of lignocellulose from wood. 13 * Sec. 4. AS 43.40.010(b), as repealed and reenacted by sec. 5, ch. 127, SLA 1994, is 14 amended to read: 15  (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 16 by a user, except that 17  (1) the tax on aviation gasoline consumed is four cents a gallon; 18  (2) the tax on motor fuel used in and on watercraft of all descriptions 19 is five cents a gallon; [AND] 20  (3) the tax on all aviation fuel other than gasoline is two and one-half 21 cents a gallon; and 22  (4) the tax rate on motor fuel that is blended with alcohol is the 23 same tax rate a gallon as other motor fuel; however, the tax on motor fuel 24 consumed or used within the state that is at least 10 percent alcohol by volume, 25 has been produced from the processing of lignocellulose derived from wood, and 26 was produced in a facility that processes lignocellulose from wood is eight cents 27 a gallon less than the tax on other motor fuel, but this reduction in the rate of tax 28 applies to motor fuel sold or transferred that was produced only during the first 29 five years of the facility's processing of lignocellulose from wood. 30 * Sec. 5. AS 43.40.015(d) is amended to read: 31  (d) A certificate of use is not required 01  (1) for fuel exempted under AS 43.40.100(2)(C) [, (F),] or (J) [(K)]; 02 and 03  (2) for fuel exempted under AS 43.40.100(2)(I) [AS 43.40.100(2)(J)] 04 other than fuel sold or transferred under this exemption to a person who is engaged in 05 construction or mining activity. 06 * Sec. 6. AS 43.40.100(2) is amended to read: 07  (2) "motor fuel" means fuel used in an engine for the propulsion of a 08 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 09 stationary engine, machine, or mechanical contrivance that [WHICH] is run by an 10 internal combustion motor; "motor fuel" does not include 11  (A) fuel consigned to foreign countries; 12  (B) fuel sold for use in jet propulsion aircraft operating in 13 flights to foreign countries; 14  (C) fuel used in stationary power plants operating as public 15 utility plants and generating electrical energy for sale to the general public; 16  (D) fuel used by nonprofit power associations or corporations 17 for generating electric energy for resale; 18  (E) fuel used by charitable institutions; 19  (F) [FUEL WHICH IS AT LEAST 10 PERCENT ALCOHOL 20 BY VOLUME; 21  (G)] fuel sold or transferred between qualified dealers; 22   (G) [(H)] fuel sold to federal, state, and local government 23 agencies for official use; 24   (H) [(I)] fuel used in stationary power plants that generate 25 electrical energy for private residential consumption; 26   (I) [(J)] fuel used to heat private or commercial buildings or 27 facilities; 28   (J) [(K)] fuel used for other nontaxable purposes as prescribed 29 by regulations adopted by the department; or 30   (K) [(L)] fuel used in stationary power plants of 100 kilowatts 31 [KW] or less that generate electrical power for commercial enterprises not for 01 resale; 02 * Sec. 7. CONDITIONAL EFFECT OF SECTIONS 2 AND 4. Sections 2 and 4 of this 03 Act take effect only if, under sec. 6, ch. 127, SLA 1994, secs. 3 and 5, ch. 127, SLA 1994, 04 take effect because the Department of Transportation and Public Facilities, before January 1, 05 2000, increases the fee it charges under AS 02.15.090(a) for the privilege of landing aircraft 06 at rural airports, as that term is defined in 17 AAC 40.795(2), above the amount of the fee in 07 effect on January 1, 1994. 08 * Sec. 8. Sections 1, 3, and 5 - 7 of this Act take effect July 1, 1997. 09 * Sec. 9. (a) If secs. 2 and 4 of this Act take effect under sec. 7 of this Act and sec. 6, 10 ch. 127, SLA 1994, they take effect on the later of 11 (1) the 30th day after the effective date of the landing fee increase described 12 in sec. 7 of this Act; or 13 (2) the day after the day that sec. 7 of this Act becomes law. 14 (b) The commissioner of transportation and public facilities shall promptly notify the 15 commissioner of revenue, the lieutenant governor, and the revisor of statutes of a landing fee 16 increase described in sec. 7 of this Act.