00HOUSE BILL NO. 536                                                                                                      
01 "An Act relating to the tax on transfers or consumption of motor fuel; and                                              
02 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 11 [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 11 [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 43.40.030(a) is amended to read:                                                                       
07  (a)  Except as specified in AS 43.40.010(j), a person who uses motor fuel to                                          
08 operate an internal combustion engine is entitled to a refund of nine [SIX] cents a                                   
09 gallon if                                                                                                               
10   (1)  the tax on the motor fuel has been paid;                                                                        
11   (2)  the motor fuel is not aviation fuel, or motor fuel used in or on                                                
12 watercraft; and                                                                                                         
13   (3)  the internal combustion engine is not used in or in conjunction with                                            
14 a motor vehicle licensed to be operated on public ways.                                                                 
15    * Sec. 4.  This Act takes effect July 1, 1994.