00                            HOUSE BILL NO. 216                                                                          
01 "An Act relating to municipal taxation of refined fuel products."                                                       
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.10.200 is amended by adding a new paragraph to read:                                           
04                 (64)  AS 29.45.820 (restriction on taxation of fuel products).                                          
05    * Sec. 2.  AS 29.45.650(a) is amended to read:                                                                     
06            (a)  Except as provided in AS 04.21.010(c), AS 29.45.750, 29.45.820, and in                              
07       (f) and (h) of this section, a borough may levy and collect a sales tax on sales, rents,                          
08       and on services provided in the borough.  The sales tax may apply to any or all of                                
09       these sources.  Exemptions may be granted by ordinance.                                                           
10    * Sec. 3.  AS 29.45 is amended by adding a new section to read:                                                    
11            Sec. 29.45.820.  Restriction on taxation of fuel products.  (a)  Except as                                 
12       provided in (b) of this section, a municipality may not impose a property, sales, or                              
13       other tax on refined fuel products or constituents of refined fuel products.                                      
14            (b)  A municipality may impose a sales or transfer tax on motor fuel that is not                             
15       transported for sale or distribution outside that municipality.  For purposes of this                             

01       subsection, "motor fuel" has the meaning given in AS 43.40.100.                                                   
02            (c)  This section applies to home rule and general law municipalities.                                       
03    * Sec. 4.  Sec. 4, ch. 100, SLA 2002, is repealed and reenacted to read:                                           
04            Sec. 4. AS 29.45.650(a) is amended to read:                                                                  
05            (a)  Except as provided in AS 04.21.010(c), [AS 29.45.750,] AS 29.45.820,                                    
06       and in (f) and (h) of this section, a borough may levy and collect a sales tax on sales,                          
07       rents, and on services provided in the borough.  The sales tax may apply to any or all                            
08       of these sources.  Exemptions may be granted by ordinance.