00CS FOR HOUSE BILL NO. 509(L&C)                                                                                          
01 "An Act relating to the tax on transfers or consumption of motor fuel, and to                                           
02 the proceeds from the tax; and providing for an effective date."                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43.40.010(a) is amended to read:                                                                    
05  (a)  There is levied a tax of 17 [EIGHT] cents a gallon on all motor fuel sold                                      
06 or otherwise transferred within the state, except that                                                                  
07   (1)  the tax on aviation gasoline is four cents a gallon,                                                            
08   (2)  the tax on motor fuel used in and on watercraft of all descriptions                                             
09 is five cents a gallon, and                                                                                             
10   (3)  the tax on all aviation fuel other than gasoline is two and one-half                                            
11 cents a gallon.                                                                                                         
12    * Sec. 2.  AS 43.40.010(b) is amended to read:                                                                       
13  (b)  There is levied a tax of 17 [EIGHT] cents a gallon on all motor fuel                                           
14 consumed by a user, except that                                                                                         

01   (1)  the tax on aviation gasoline consumed is four cents a gallon,                                                   
02   (2)  the tax on motor fuel used in and on watercraft of all descriptions                                             
03 is five cents a gallon, and                                                                                             
04   (3)  the tax on all aviation fuel other than gasoline is two and one-half                                            
05 cents a gallon.                                                                                                         
06    * Sec. 3.  AS 43.40.010(g) is repealed and reenacted to read:                                                        
07  (g)  The proceeds of the revenue from the tax on all motor fuels, except as                                           
08 provided in (e), (f), (j), and (m) of this section, shall be deposited in a special highway                             
09 fuel tax account in the state general fund.  The legislature may use the annual                                         
10 estimated balance of the account to make appropriations for expenditure by the                                          
11 Department of Transportation and Public Facilities directly or as matched with                                          
12 available federal-aid highway money for maintenance of highways, construction of                                        
13 highway projects and ferries included in the program provided for in AS 19.10.150,                                      
14 including approaches, appurtenances, and related facilities, and acquisition of rights-of-way or easements, and for oth 
15 highway costs including surveys, administration, and                                                                    
16 related matters.                                                                                                        
17    * Sec. 4.  AS 43.40.010 is amended by adding a new subsection to read:                                               
18  (m)  The proceeds of the revenue from one cent of the 17-cent tax imposed by                                          
19 (a) and (b) of this section shall be deposited in a special storage tank assistance                                     
20 account in the state general fund.  The legislature may appropriate from this account                                   
21 to the storage tank assistance fund established by AS 46.03.410.                                                        
22    * Sec. 5.  AS 43.40.030(a) is amended to read:                                                                       
23  (a)  Except as specified in AS 43.40.010(j), a person who uses motor fuel to                                          
24 operate an internal combustion engine is entitled to a refund of 15 [SIX] cents a gallon                              
25 if                                                                                                                      
26   (1)  the tax on the motor fuel has been paid;                                                                        
27   (2)  the motor fuel is not aviation fuel, or motor fuel used in or on                                                
28 watercraft; and                                                                                                         
29   (3)  the internal combustion engine is not used in or in conjunction with                                            
30 a motor vehicle licensed to be operated on public ways.                                                                 
31    * Sec. 6.  This Act takes effect July 1, 1994.