CSHB 243(TRA): "An Act relating to taxes on motor fuel used in or on boats and watercraft; and providing for an effective date."
00CS FOR HOUSE BILL NO. 243(TRA) 01 "An Act relating to taxes on motor fuel used in or on boats and watercraft; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 05 section to read: 06 PURPOSE. It is the purpose of the legislature to encourage municipalities to assume 07 responsibility for port and harbor facilities within their boundaries that are currently 08 maintained by the state and to impose taxes on motor fuel used in or on boats and watercraft 09 to produce revenues to maintain those port and harbor facilities. 10 * Sec. 2. AS 29.45 is amended by adding a new section to read: 11 Article 5A. Municipal Motor Fuel Tax. 12 Sec. 29.45.750. Tax on transfers or consumption of motor fuel used in or 13 on boats and watercraft. A municipality may levy and collect a tax of three cents 14 a gallon on motor fuel
01 (1) sold or transferred within the municipality that is to be used in or 02 on boats and watercraft of all descriptions; or 03 (2) consumed by a user in or on boats and watercraft of all 04 descriptions. 05 * Sec. 3. AS 43.40.010(a) is 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 and seven-tenths cents a gallon; 09 (2) the tax on motor fuel used in and on watercraft of all descriptions 10 is 11 (A) in a qualified municipality that levies a tax of three 12 cents a gallon specifically on the sale or transfer of motor fuel used in and 13 on watercraft, two [FIVE] cents a gallon ; for purposes of this 14 subparagraph, a qualified municipality is one 15 (i) that has assumed possession of and responsibility 16 for operation and maintenance of all state port and harbor facilities 17 within its boundaries except those owned by a public corporation 18 of the state or owned by a state agency and used for state purposes; 19 (ii) within which the state does not retain operation 20 or maintenance responsibility for port or harbor facilities except 21 those port or harbor facilities owned by a public corporation of the 22 state or owned by a state agency and used for state purposes; or 23 (iii) within which the state has never had port or 24 harbor facilities or operation or maintenance responsibility for port 25 or harbor facilities; 26 (B) except as provided in (A) of this paragraph, five cents 27 a gallon ; 28 (3) the tax on all aviation fuel other than gasoline is three and two- 29 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 sold or otherwise transferred within the state is 09 eight cents a gallon less than the tax on other motor fuel not described in (1) - 10 (3) of this 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 sold or transferred 15 that contains alcohol that was produced only during the first five years 16 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 sold or transferred 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. 4. AS 43.40.010(b) is amended to read: 24 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 25 by a user, except that 26 (1) the tax on aviation gasoline consumed is four and seven-tenths cents 27 a gallon; 28 (2) the tax on motor fuel used in and on watercraft of all descriptions 29 is 30 (A) in a qualified municipality that levies a tax of three 31 cents a gallon specifically on the user's consumption of motor fuel used in
01 and on watercraft, two [FIVE] cents a gallon ; for purposes of this 02 subparagraph, a qualified municipality is one 03 (i) that has assumed possession of and responsibility 04 for operation and maintenance of all state port and harbor facilities 05 within its boundaries except those owned by a public corporation 06 of the state or owned by a state agency and used for state purposes; 07 (ii) within which the state does not retain operation 08 or maintenance responsibility for port or harbor facilities except 09 those port or harbor facilities owned by a public corporation of the 10 state or owned by a state agency and used for state purposes; or 11 (iii) within which the state has never had port or 12 harbor facilities or operation or maintenance responsibility for port 13 or harbor facilities; 14 (B) except as provided in (A) of this paragraph, five cents 15 a gallon ; 16 (3) the tax on all aviation fuel other than gasoline is three and two- 17 tenths cents a gallon; and 18 (4) the tax rate on motor fuel that is blended with alcohol is the same 19 tax rate a gallon as other motor fuel; however, 20 (A) in an area and during the months in which fuel containing 21 alcohol is required to be sold, transferred, or used in an effort to attain air 22 quality standards for carbon monoxide as required by federal or state law or 23 regulation, the tax rate on motor fuel that is blended with alcohol is six cents 24 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 25 subsection; 26 (B) notwithstanding (A) of this paragraph, through June 30, 27 2004, the tax on motor fuel consumed by a user within the state is eight cents 28 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 29 subsection if the motor fuel 30 (i) is at least 10 percent alcohol by volume, has been 31 produced from the processing of lignocellulose derived from wood, and
01 was produced in a facility that processes lignocellulose from wood, but 02 this reduction in the rate of tax applies to motor fuel consumed by a 03 user that contains alcohol that was produced only during the first five 04 years of the facility's processing of lignocellulose from wood; or 05 (ii) is at least 10 percent alcohol by volume, has been 06 produced from the processing of waste seafood, and was produced in 07 a facility that processes alcohol from waste seafood, but this reduction 08 in the rate of tax applies to motor fuel consumed by a user that contains 09 alcohol that was produced only during the first five years of the 10 facility's processing of alcohol from waste seafood. 11 * Sec. 5. This Act takes effect July 1, 2000.