00SENATE BILL NO. 327                                                                                                     
01 "An Act amending the motor fuel tax to establish a different tax levy on                                                
02 residual fuel oil used in and on watercraft; 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 eight cents a gallon on all motor fuel sold or                                          
06 otherwise transferred within the state, except that                                                                     
07   (1)  the tax on aviation gasoline is four cents a gallon; [,]                                                      
08   (2)  the tax on                                                                                                      
09   (A)  residual fuel oil used in and on watercraft of all                                                            
10 descriptions is one cent a gallon; and                                                                                  
11   (B) motor fuel other than residual fuel oil used in and on                                                       
12 watercraft of all descriptions is five cents a gallon; [,] and                                                        
13   (3)  the tax on all aviation fuel other than gasoline is two and one-half                                            
14 cents a gallon.                                                                                                         

01    * Sec. 2.  AS 43.40.010(b) is amended to read:                                                                       
02  (b)  There is levied a tax of eight cents a gallon on all motor fuel consumed                                         
03 by a user, except that                                                                                                  
04   (1)  the tax on aviation gasoline consumed is four cents a gallon; [,]                                             
05   (2)  the tax on                                                                                                      
06   (A)  residual fuel oil used in and on watercraft of all                                                            
07 descriptions is one cent a gallon; and                                                                                  
08   (B)  motor fuel other than residual fuel oil used in and on                                                      
09 watercraft of all descriptions 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. 3.  AS 43.40.100 is amended by adding a new paragraph to read:                                                
13   (5)  "residual fuel oil" means the heavy refined hydrocarbon that is the                                             
14 residue from crude oil after refined petroleum products have been extracted by the                                      
15 refining process and that may be consumed or used only when sufficient heat is                                          
16 provided to the oil to reduce its viscosity and to give it fluid properties sufficient for                              
17 pumping and combustion.                                                                                                 
18    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).