SCS CSHB 63(RLS): "An Act relating to the tax on motor fuel; amending the definition of `motor fuel' under the state's motor fuel tax to add, as a part of the tax exemption set out in that definition, exemption from the tax for fuel sold for use in jet propulsion aircraft operating in flights that continue from foreign countries, subject to termination of the exemption for that fuel if a refiner operating a refinery at which the fuel was produced fails to comply with terms of a voluntary agreement entered into by the refiner to use Alaska residents, contractors, and suppliers to provide goods and services when the refinery's capacity is expanded, to add exemption from the tax for certain number 6 `residual fuel oil,' also known as bunker fuel, and to delete the exemption from the tax for fuel that is at least 10 percent alcohol by volume; and repealing ch. 42, SLA 1994, the Act providing for the imposition of a different tax levy on residual fuel oil used in and on certain watercraft until June 30, 1998; and providing for an effective date."
00SENATE CS FOR CS FOR HOUSE BILL NO. 63(RLS) 01 "An Act relating to the tax on motor fuel; amending the definition of `motor 02 fuel' under the state's motor fuel tax to add, as a part of the tax exemption 03 set out in that definition, exemption from the tax for fuel sold for use in jet 04 propulsion aircraft operating in flights that continue from foreign countries, 05 subject to termination of the exemption for that fuel if a refiner operating a 06 refinery at which the fuel was produced fails to comply with terms of a 07 voluntary agreement entered into by the refiner to use Alaska residents, 08 contractors, and suppliers to provide goods and services when the refinery's 09 capacity is expanded, to add exemption from the tax for certain number 6 10 `residual fuel oil,' also known as bunker fuel, and to delete the exemption from 11 the tax for fuel that is at least 10 percent alcohol by volume; and repealing 12 ch. 42, SLA 1994, the Act providing for the imposition of a different tax levy 13 on residual fuel oil used in and on certain watercraft until June 30, 1998; and 14 providing for an effective date."
01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 * Section 1. AS 43.40.010(a) is amended to read: 03 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 04 otherwise transferred within the state, except that 05 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; (2) the tax on motor fuel used in and 06 on watercraft of all descriptions 07 is five cents a gallon; [AND] 08 (3) the tax on all aviation fuel other than gasoline is three and two- 09 tenths cents a gallon; and 10 (4) the tax rate on motor fuel that is blended with alcohol is the 11 same tax rate a gallon as other motor fuel; however, 12 (A) in an area and during the months in which fuel 13 containing alcohol is required to be sold, transferred, or used in an effort 14 to attain air quality standards for carbon monoxide as required by federal 15 or state law or regulation, the tax rate on motor fuel that is blended with 16 alcohol is four cents less than the tax on other motor fuel not described in 17 (1) - (3) of this subsection; 18 (B) notwithstanding (A) of this paragraph, through June 30, 19 2004, the tax on motor fuel sold or otherwise transferred within the state 20 is eight cents a gallon less than the tax on other motor fuel not described 21 in (1) - (3) of this subsection if the motor fuel 22 (i) is at least 10 percent alcohol by volume, has been 23 produced from the processing of lignocellulose derived from wood, 24 and was produced in a facility that processes lignocellulose from 25 wood, but this reduction in the rate of tax applies to motor fuel sold 26 or transferred that contains alcohol that was produced only during 27 the first five years of the facility's processing of lignocellulose from 28 wood; or 29 (ii) is at least 10 percent alcohol by volume, has been 30 produced from the processing of waste seafood, and was produced 31 in a facility that processes alcohol from waste seafood, but this
01 reduction in the rate of tax applies to motor fuel sold or transferred 02 that contains alcohol that was produced only during the first five 03 years of the facility's processing of alcohol from waste seafood. 04 * Sec. 2. AS 43.40.010(a), as repealed and reenacted by sec. 3, ch. 127, SLA 1994, is 05 amended to read: 06 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 07 otherwise transferred within the state, except that 08 (1) the tax on aviation gasoline is four cents a gallon; 09 (2) the tax on motor fuel used in and on watercraft of all descriptions 10 is five cents a gallon; [AND] 11 (3) the tax on all aviation fuel other than gasoline is two and one-half 12 cents a gallon; and 13 (4) the tax rate on motor fuel that is blended with alcohol is the 14 same tax rate a gallon as other motor fuel; however, 15 (A) in an area and during the months in which fuel 16 containing alcohol is required to be sold, transferred, or used in an effort 17 to attain air quality standards for carbon monoxide as required by federal 18 or state law or regulation, the tax rate on motor fuel that is blended with 19 alcohol is four cents less than the tax on other motor fuel not described in 20 (1) - (3) of this subsection; 21 (B) notwithstanding (A) of this paragraph, through June 30, 22 2004, the tax on motor fuel sold or otherwise transferred within the state 23 is eight cents a gallon less than the tax on other motor fuel not described 24 in (1) - (3) of this subsection if the motor fuel 25 (i) is at least 10 percent alcohol by volume, has been 26 produced from the processing of lignocellulose derived from wood, 27 and was produced in a facility that processes lignocellulose from 28 wood, but this reduction in the rate of tax applies to motor fuel sold 29 or transferred that contains alcohol that was produced only during 30 the first five years of the facility's processing of lignocellulose from 31 wood; or
01 (ii) is at least 10 percent alcohol by volume, has been 02 produced from the processing of waste seafood, and was produced 03 in a facility that processes alcohol from waste seafood, but this 04 reduction in the rate of tax applies to motor fuel sold or transferred 05 that contains alcohol that was produced only during the first five 06 years of the facility's processing of alcohol from waste seafood. 07 * Sec. 3. AS 43.40.010(b) is amended to read: 08 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 09 by a user, except that 10 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 11 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- 15 tenths cents a gallon; and 16 (4) the tax rate on motor fuel that is blended with alcohol is the 17 same tax rate a gallon as other motor fuel; however, 18 (A) in an area and during the months in which fuel 19 containing alcohol is required to be sold, transferred, or used in an effort 20 to attain air quality standards for carbon monoxide as required by federal 21 or state law or regulation, the tax rate on motor fuel that is blended with 22 alcohol is four cents less than the tax on other motor fuel not described in 23 (1) - (3) of this subsection; 24 (B) notwithstanding (A) of this paragraph, through June 30, 25 2004, the tax on motor fuel consumed by a user within the state is eight 26 cents a gallon less than the tax on other motor fuel not described in (1) - 27 (3) of this subsection if the motor fuel 28 (i) is at least 10 percent alcohol by volume, has been 29 produced from the processing of lignocellulose derived from wood, 30 and was produced in a facility that processes lignocellulose from 31 wood, but this reduction in the rate of tax applies to motor fuel
01 consumed by a user that contains alcohol that was produced only 02 during the first five years of the facility's processing of 03 lignocellulose from wood; or 04 (ii) is at least 10 percent alcohol by volume, has been 05 produced from the processing of waste seafood, and was produced 06 in a facility that processes alcohol from waste seafood, but this 07 reduction in the rate of tax applies to motor fuel consumed by a 08 user that contains alcohol that was produced only during the first 09 five years of the facility's processing of alcohol from waste seafood. 10 * Sec. 4. AS 43.40.010(b), as repealed and reenacted by sec. 5, ch. 127, SLA 1994, is 11 amended to read: 12 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 13 by a user, except that 14 (1) the tax on aviation gasoline consumed 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, 21 (A) in an area and during the months in which fuel 22 containing alcohol is required to be sold, transferred, or used in an effort 23 to attain air quality standards for carbon monoxide as required by federal 24 or state law or regulation, the tax rate on motor fuel that is blended with 25 alcohol is four cents less than the tax on other motor fuel not described in 26 (1) - (3) of this subsection; 27 (B) notwithstanding (A) of this paragraph, through June 30, 28 2004, the tax on motor fuel consumed by a user within the state is eight 29 cents a gallon less than the tax on other motor fuel not described in (1) - 30 (3) of this subsection if the motor fuel 31 (i) is at least 10 percent alcohol by volume, has been
01 produced from the processing of lignocellulose derived from wood, 02 and was produced in a facility that processes lignocellulose from 03 wood, but this reduction in the rate of tax applies to motor fuel 04 consumed by a user that contains alcohol that was produced only 05 during the first five years of the facility's processing of 06 lignocellulose from wood; or 07 (ii) is at least 10 percent alcohol by volume, has been 08 produced from the processing of waste seafood, and was produced 09 in a facility that processes alcohol from waste seafood, but this 10 reduction in the rate of tax applies to motor fuel consumed by a 11 user that contains alcohol that was produced only during the first 12 five years of the facility's processing of alcohol from waste seafood. 13 * Sec. 5. AS 43.40.015(d) is amended to read: 14 (d) A certificate of use is not required 15 (1) for fuel exempted under AS 43.40.100(2)(C) [, (F),] or (J) [(K)]; 16 and 17 (2) for fuel exempted under AS 43.40.100(2)(I) [AS 43.40.100(2)(J)] 18 other than fuel sold or transferred under this exemption to a person who is engaged in 19 construction or mining activity. 20 * Sec. 6. AS 43.40 is amended by adding a new section to read: 21 Sec. 43.40.092. Disallowance of exemption from motor fuel tax for certain 22 fuel sold for use in jet propulsion aircraft operating in flights that continue from 23 foreign countries. (a) The provisions of this section apply to disallow the exemption 24 for motor fuel sold for use by a dealer or used by a user in jet propulsion aircraft 25 operating in flights that continue from foreign countries if, for motor fuel produced by 26 a refiner, 27 (1) the refiner determines, on or after the effective date of this section, 28 that the refiner will expand capacity or expand the refinery to produce more residual 29 fuel oil used in watercraft; 30 (2) on or after the effective date of this section, the refiner has 31 voluntarily committed by agreement entered into with the commissioner that, if the
01 refiner expands its oil refining capacity in order to produce additional supplies of fuel 02 for use in jet propulsion aircraft that qualify for the tax exemption, when the refiner 03 expands capacity, the refiner will 04 (A) use the refiner's best efforts to advertise for, recruit, and 05 employ in the construction activities associated with expanding refinery 06 capacity resident workers who have experience in the specific fields in which 07 they are hired to work; 08 (B) contract with licensed Alaska firms to prepare materials that 09 are used in construction activities and to provide services in conjunction with 10 activities associated with expanded refinery capacity and, in contracting with 11 those firms, to encourage the refiner's contractors to employ and, when 12 necessary, train state residents; and 13 (C) enter into contracts with Alaska-licensed vendors, 14 contractors, and suppliers for the provision of supplies and services used in 15 conjunction with activities associated with expanding refinery capacity; and 16 (3) the commissioner determines that a dealer or user claiming the 17 exemption for motor fuel acquired from a refiner who has entered into an agreement 18 described in (2) of this subsection acquired the motor fuel for which the exemption is 19 claimed from a refiner who has not complied with the requirements of the agreement 20 in completing expansion of its oil refining capacity under the agreement described in 21 (1) of this subsection. 22 (b) For purposes of this section, 23 (1) the term "resident worker" means an individual who 24 (A) is physically present in the state with the intent to remain 25 in the state indefinitely and has a home in the state; 26 (B) demonstrates that intent by maintaining a residence in the 27 state; 28 (C) possesses a resident fishing, trapping, or hunting license, or 29 receives a permanent fund dividend; and 30 (D) may be required to state under oath that the individual is 31 not claiming residency outside of the state or obtaining benefits under a claim
01 of residency outside of the state; 02 (2) the phrases "Alaska-licensed contractors" and "Alaska firms" mean 03 a contractor or firm that 04 (A) has held an Alaska business license for one year before 05 performing any work in connection with the commitment described in (a) of 06 this section; 07 (B) has maintained for one year a place of business within the 08 state that deals in the supplies, services, or construction of the nature required 09 for the commitment described in (a) of this section; and 10 (C) is 11 (i) a sole proprietorship and the proprietor is an Alaska 12 resident; 13 (ii) a partnership and more than 50 percent of the 14 partners are Alaska residents; 15 (iii) a corporation that has been incorporated in the state 16 or is authorized to do business in the state; or 17 (iv) a joint venture composed entirely of ventures that 18 qualify under this subparagraph. 19 * Sec. 7. AS 43.40.100(2) is amended to read: 20 (2) "motor fuel" means fuel used in an engine for the propulsion of a 21 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 22 stationary engine, machine, or mechanical contrivance that [WHICH] is run by an 23 internal combustion motor; "motor fuel" does not include 24 (A) fuel consigned to foreign countries; 25 (B) fuel sold for use in jet propulsion aircraft operating in 26 flights 27 (i) to foreign countries; or 28 (ii) that continue from foreign countries, unless 29 exemption of the motor fuel from taxation is disallowed because of 30 the refiner's failure to comply with the provisions of a voluntary 31 agreement under AS 43.40.092 in conjunction with expansion of
01 refinery capacity; 02 (C) fuel used in stationary power plants operating as public 03 utility plants and generating electrical energy for sale to the general public; 04 (D) fuel used by nonprofit power associations or corporations 05 for generating electric energy for resale; 06 (E) fuel used by charitable institutions; 07 (F) [FUEL WHICH IS AT LEAST 10 PERCENT ALCOHOL 08 BY VOLUME; 09 (G)] fuel sold or transferred between qualified dealers; 10 (G) [(H)] fuel sold to federal, state, and local government 11 agencies for official use; 12 (H) [(I)] fuel used in stationary power plants that generate 13 electrical energy for private residential consumption; 14 (I) [(J)] fuel used to heat private or commercial buildings or 15 facilities; 16 (J) [(K)] fuel used for other nontaxable purposes as prescribed 17 by regulations adopted by the department; 18 (K) [OR (L)] fuel used in stationary power plants of 100 19 kilowatts [KW] or less that generate electrical power for commercial 20 enterprises not for resale; or 21 (L) residual fuel oil used in and on watercraft if the residual 22 fuel oil is sold or transferred in the state or consumed by a user; for 23 purposes of this subparagraph, "residual fuel oil" means the heavy refined 24 hydrocarbon known as number 6 fuel oil that is the residue from crude oil 25 after refined petroleum products have been extracted by the refining 26 process and that may be consumed or used only when sufficient heat is 27 provided to the oil to reduce its viscosity rated by kinetic unit and to give 28 it fluid properties sufficient for pumping and combustion; 29 * Sec. 8. Chapter 42, SLA 1994, is repealed. 30 * Sec. 9. CONDITIONAL EFFECT OF SECTIONS 2 AND 4. Sections 2 and 4 of this 31 Act take effect only if, under sec. 6, ch. 127, SLA 1994, secs. 3 and 5, ch. 127, SLA 1994,
01 take effect because the Department of Transportation and Public Facilities, before January 1, 02 2000, increases the fee it charges under AS 02.15.090(a) for the privilege of landing aircraft 03 at rural airports, as that term is defined in 17 AAC 40.795(2), above the amount of the fee in 04 effect on January 1, 1994. 05 * Sec. 10. Sections 1, 3, and 5 - 9 of this Act take effect July 1, 1997. 06 * Sec. 11. (a) If secs. 2 and 4 of this Act take effect under sec. 9 of this Act and sec. 6, 07 ch. 127, SLA 1994, they take effect on the later of 08 (1) the 30th day after the effective date of the landing fee increase described 09 in sec. 9 of this Act; or 10 (2) the day after the day that sec. 9 of this Act becomes law. 11 (b) The commissioner of transportation and public facilities shall promptly notify the 12 commissioner of revenue, the lieutenant governor, and the revisor of statutes of a landing fee 13 increase described in sec. 9 of this Act.