SB 178: "An Act relating to taxes on motor fuel used in or on boats and watercraft; and providing for an effective date."
00SENATE BILL NO. 178 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. PURPOSE AND INTENT. (a) It is the purpose of the legislature to 05 encourage municipalities to assume responsibility for harbors within their boundaries that are 06 currently maintained by the state and to impose taxes on motor fuel used in or on boats and 07 watercraft to produce revenues to maintain those harbors. 08 (b) It is the intent of the legislature that the changes to the rate of tax on motor fuel 09 used in and on watercraft made in this bill continue in effect even if the delayed amendment 10 of AS 43.40.010(a) and (b) under secs. 3, 5, 6, and 7, ch. 127, SLA 1994, and secs. 3, 5, 10, 11 and 12, ch. 88, SLA 1997, takes effect. 12 * Sec. 2. AS 29.45 is amended by adding a new section to read: 13 Article 5A. Municipal Motor Fuel Tax. 14 Sec. 29.45.750. Tax on transfers or consumption of motor fuel used in or
01 on boats and watercraft. A municipality may levy and collect a tax on motor fuel 02 (1) sold or transferred within the municipality that is to be used in or 03 on boats and watercraft of all descriptions; or 04 (2) consumed by a user in or on boats and watercraft of all 05 descriptions. 06 * Sec. 3. AS 43.40.010(a) is amended to read: 07 (a) There is levied a tax of eight cents a gallon on all motor fuel sold or 08 otherwise transferred within the state, except that 09 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 10 (2) the tax on motor fuel used in and on watercraft of all descriptions 11 is 12 (A) in a qualified municipality that levies a tax specifically 13 on the sale or transfer of motor fuel used in and on watercraft, five cents 14 a gallon , less the rate per gallon of the municipal tax on motor fuel used 15 in and on watercraft up to a maximum municipal tax of three cents a 16 gallon; in no case shall the tax imposed by the state under this paragraph 17 be less than two cents a gallon; for purposes of this subparagraph, a 18 qualified municipality is one 19 (i) that has assumed possession of and responsibility 20 for operation and maintenance of all state harbors within its 21 boundaries; and 22 (ii) within which the state retains no operation or 23 maintenance responsibility for harbors; 24 (B) except as provided in (A) of this paragraph, five cents 25 a gallon ; 26 (3) the tax on all aviation fuel other than gasoline is three and two- 27 tenths cents a gallon; and 28 (4) the tax rate on motor fuel that is blended with alcohol is the same 29 tax rate a gallon as other motor fuel; however, 30 (A) in an area and during the months in which fuel containing 31 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. 4. AS 43.40.010(b) is amended to read: 22 (b) There is levied a tax of eight cents a gallon on all motor fuel consumed 23 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 28 (A) in a qualified municipality that levies a tax specifically 29 on the user's consumption of motor fuel used in and on watercraft, five 30 cents a gallon , less the rate per gallon of the municipal tax on motor fuel 31 used in and on watercraft up to a maximum municipal tax of three cents
01 a gallon; in no case shall the tax imposed by the state under this 02 paragraph be less than two cents a gallon; for purposes of this 03 subparagraph, a qualified municipality is one 04 (i) that has assumed possession of and responsibility 05 for operation and maintenance of all state harbors within its 06 boundaries; and 07 (ii) within which the state retains no operation or 08 maintenance responsibility for harbors; 09 (B) except as provided in (A) of this paragraph, five cents 10 a gallon ; 11 (3) the tax on all aviation fuel other than gasoline is three and two- 12 tenths cents a gallon; and 13 (4) the tax rate on motor fuel that is blended with alcohol is the same 14 tax rate a gallon as other motor fuel; however, 15 (A) in an area and during the months in which fuel containing 16 alcohol is required to be sold, transferred, or used in an effort to attain air 17 quality standards for carbon monoxide as required by federal or state law or 18 regulation, the tax rate on motor fuel that is blended with alcohol is six cents 19 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 20 subsection; 21 (B) notwithstanding (A) of this paragraph, through June 30, 22 2004, the tax on motor fuel consumed by a user within the state is eight cents 23 a gallon less than the tax on other motor fuel not described in (1) - (3) of this 24 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, and 27 was produced in a facility that processes lignocellulose from wood, but 28 this reduction in the rate of tax applies to motor fuel consumed by a 29 user that contains alcohol that was produced only during the first five 30 years of the facility's processing of lignocellulose from wood; or 31 (ii) is at least 10 percent alcohol by volume, has been
01 produced from the processing of waste seafood, and was produced in 02 a facility that processes alcohol from waste seafood, but this reduction 03 in the rate of tax applies to motor fuel consumed by a user that contains 04 alcohol that was produced only during the first five years of the 05 facility's processing of alcohol from waste seafood. 06 * Sec. 5. This Act takes effect July 1, 2000.