HB 59: "An Act relating to the motor fuel tax; and providing for an effective date."
00HOUSE BILL NO. 59 01 "An Act relating to the motor fuel tax; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 43.40.010(a) is amended to read: 04 (a) There is levied a tax of 17 [EIGHT] cents a gallon on all motor fuel sold 05 or otherwise transferred within the state, except that 06 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 07 (2) the tax on motor fuel used in and on watercraft of all descriptions 08 is five cents a gallon; 09 (3) the tax on all aviation fuel other than gasoline is three and 10 two-tenths cents a gallon; and 11 (4) the tax rate on motor fuel that is blended with alcohol is the same 12 tax rate a gallon as other motor fuel; however, 13 (A) in an area and during the months in which fuel containing 14 alcohol is required to be sold, transferred, or used in an effort to attain air
01 quality standards for carbon monoxide as required by federal or state law or 02 regulation, the tax rate on motor fuel that is blended with alcohol is six cents 03 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 04 subsection; 05 (B) notwithstanding (A) of this paragraph, through June 30, 06 2004, the tax on motor fuel sold or otherwise transferred within the state is 07 eight cents a gallon less than the tax on other motor fuel not described in (1) 08 - (3) of this subsection if the motor fuel 09 (i) is at least 10 percent alcohol by volume, has been 10 produced from the processing of lignocellulose derived from wood, and 11 was produced in a facility that processes lignocellulose from wood, but 12 this reduction in the rate of tax applies to motor fuel sold or transferred 13 that contains alcohol that was produced only during the first five years 14 of the facility's processing of lignocellulose from wood; or 15 (ii) is at least 10 percent alcohol by volume, has been 16 produced from the processing of waste seafood, and was produced in 17 a facility that processes alcohol from waste seafood, but this reduction 18 in the rate of tax applies to motor fuel sold or transferred that contains 19 alcohol that was produced only during the first five years of the 20 facility's processing of alcohol from waste seafood. 21 * Sec. 2. AS 43.40.010(b) is amended to read: 22 (b) There is levied a tax of 17 [EIGHT] cents a gallon on all motor fuel 23 consumed by a user, except that 24 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 25 a gallon; 26 (2) the tax on motor fuel used in and on watercraft of all descriptions 27 is five cents a gallon; 28 (3) the tax on all aviation fuel other than gasoline is three and 29 two-tenths cents a gallon; and 30 (4) the tax rate on motor fuel that is blended with alcohol is the same 31 tax rate a gallon as other motor fuel; however,
01 (A) in an area and during the months in which fuel containing 02 alcohol is required to be sold, transferred, or used in an effort to attain air 03 quality standards for carbon monoxide as required by federal or state law or 04 regulation, the tax rate on motor fuel that is blended with alcohol is six cents 05 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 06 subsection; 07 (B) notwithstanding (A) of this paragraph, through June 30, 08 2004, the tax on motor fuel consumed by a user within the state is eight cents 09 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 10 subsection if the motor fuel 11 (i) is at least 10 percent alcohol by volume, has been 12 produced from the processing of lignocellulose derived from wood, and 13 was produced in a facility that processes lignocellulose from wood, but 14 this reduction in the rate of tax applies to motor fuel consumed by a 15 user that contains alcohol that was produced only during the first five 16 years of the facility's processing of lignocellulose from wood; or 17 (ii) is at least 10 percent alcohol by volume, has been 18 produced from the processing of waste seafood, and was produced in 19 a facility that processes alcohol from waste seafood, but this reduction 20 in the rate of tax applies to motor fuel consumed by a user that contains 21 alcohol that was produced only during the first five years of the 22 facility's processing of alcohol from waste seafood. 23 * Sec. 3. AS 43.40.010(g) is amended to read: 24 (g) The proceeds of the revenue from the tax on all motor fuels, except as 25 provided in (e), (f) , and (j) of this section, shall be deposited in a special highway 26 construction and maintenance [HIGHWAY FUEL TAX] account in the state general 27 fund. The legislature may appropriate money [FUNDS] from the account [IT] for 28 expenditure by the Department of Transportation and Public Facilities first directly or 29 as matched with available federal-aid highway money for planning, design, and 30 [MAINTENANCE OF HIGHWAYS,] construction of highway projects , [AND] ferries , 31 and ferry terminals included in the program provided for in AS 19.10.150, and
01 second for secondary road paving and deferred maintenance projects included in 02 the program provided for in AS 19.10.150. Eligible construction projects include 03 [INCLUDING] approaches, appurtenances and related facilities and acquisition of 04 rights-of-way or easements, and other highway costs including surveys, administration, 05 and related matters. All departments of the state government authorized to spend 06 money [FUNDS] collected from taxes imposed by this chapter shall perform, if 07 [WHEN] feasible, all construction or reconstruction projects by contract after the 08 projects have been advertised for competitive bids, except that, when feasible, 09 arrangements shall be made with political subdivisions to carry out the construction 10 or reconstruction projects. If it is not feasible for the work to be performed by state 11 engineering forces, the commissioner of transportation and public facilities may issue 12 a best interest determination and contract on a professional basis with private 13 engineering firms for road design, bridge design, and services in connection with 14 surveys. If more than one private engineering firm is available for the work , the 15 contracts shall be entered into on a negotiated basis. 16 * Sec. 4. AS 43.40.010(h) is amended to read: 17 (h) All motor fuel tax receipts shall be paid into the general fund and 18 distributed to the proper accounts in the general fund. Valid motor fuel tax refund 19 claims shall be paid from the highway construction and maintenance [HIGHWAY 20 FUEL TAX] account in the general fund. 21 * Sec. 5. AS 43.40.030(a) is amended to read: 22 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 23 operate an internal combustion engine is entitled to a refund of 13 [SIX] cents a gallon 24 if 25 (1) the tax on the motor fuel has been paid; 26 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 27 watercraft; and 28 (3) the internal combustion engine is not used in or in conjunction with 29 a motor vehicle licensed to be operated on public ways. 30 * Sec. 6. AS 43.40.070 is amended to read: 31 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim by the
01 department, a warrant shall be drawn on the highway construction and maintenance 02 [HIGHWAY FUEL TAX] account in the general fund in favor of the applicant in the 03 amount of the claim. 04 * Sec. 7. AS 43.40 is amended by adding a new section to read: 05 Sec. 43.40.087. Civil penalties and enforcement. (a) Notwithstanding the 06 provisions of AS 43.05.130 or 43.05.220, the department shall assess a civil penalty 07 in accordance with this section for a violation of this chapter or a regulation adopted 08 under this chapter. The department shall establish the amount and other standards for 09 the assessment by regulations adopted under AS 43.05.080, but the maximum penalty 10 assessed under this section may not exceed 11 (1) $10,000 for the first violation; 12 (2) $50,000 for each subsequent violation. 13 (b) A civil penalty assessed under (a) of this section is in addition to any 14 criminal penalty imposed under AS 43.05.290. 15 (c) In addition to a civil penalty assessed under (a) of this section, any 16 criminal penalties imposed under AS 43.05.290, interest imposed under this title, and 17 any other remedy or other means of enforcement available under this title, for a 18 violation of this chapter or a regulation under this chapter the department may, in 19 accordance with regulations adopted under AS 43.05.080, 20 (1) revoke a license issued under this chapter; and 21 (2) assess restitution in an amount of up to twice the amount of unpaid 22 tax or unwarranted refund received. 23 * Sec. 8. AS 43.40.100(2) is amended to read: 24 (2) "motor fuel" means fuel used in an engine for the propulsion of a 25 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 26 stationary engine, machine, or mechanical contrivance that is run by an internal 27 combustion motor; "motor fuel" does not include 28 (A) fuel consigned to foreign countries; 29 (B) fuel sold for use in jet propulsion aircraft operating in 30 flights 31 (i) to foreign countries; or
01 (ii) that continue from foreign countries, unless 02 exemption of the motor fuel from taxation is disallowed because of the 03 refiner's failure to comply with the provisions of a voluntary agreement 04 under AS 43.40.092 in conjunction with expansion of refinery capacity; 05 (C) fuel used in stationary power plants operating as public 06 utility plants and generating electrical energy for sale to the general public; 07 (D) fuel used by nonprofit power associations or corporations 08 for generating electric energy for resale; 09 (E) fuel used by charitable institutions approved under 10 26 U.S.C. 501(c)(3) ; 11 (F) fuel sold or transferred between qualified dealers; 12 (G) fuel sold to federal, state, and local government agencies 13 for official use; 14 (H) fuel used in stationary power plants that generate electrical 15 energy for private residential consumption; 16 (I) fuel used to heat private or commercial buildings or 17 facilities; 18 (J) fuel used for other nontaxable purposes as prescribed by 19 regulations adopted by the department; 20 (K) fuel used in stationary power plants of 100 kilowatts or less 21 that generate electrical power for commercial enterprises not for resale; or 22 (L) residual fuel oil used in and on watercraft if the residual 23 fuel oil is sold or transferred in the state or consumed by a user; for purposes 24 of this subparagraph, "residual fuel oil" means the heavy refined hydrocarbon 25 known as number 6 fuel oil that is the residue from crude oil after refined 26 petroleum products have been extracted by the refining process and that may 27 be consumed or used only when sufficient heat is provided to the oil to reduce 28 its viscosity rated by kinetic unit and to give it fluid properties sufficient for 29 pumping and combustion; 30 * Sec. 9. This Act takes effect July 1, 1999.