CSSB 112(TRA): "An Act increasing the motor fuel tax; repealing the special tax rates on blended fuels; removing the motor fuel tax exemption of the Alaska Railroad; relating to tax refunds for government agency purchases of fuel; and providing for an effective date."
00 CS FOR SENATE BILL NO. 112(TRA) 01 "An Act increasing the motor fuel tax; repealing the special tax rates on blended fuels; 02 removing the motor fuel tax exemption of the Alaska Railroad; relating to tax refunds 03 for government agency purchases of fuel; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 42.40.910 is amended by adding a new subsection to read: 06 (d) Nothing in this section exempts the corporation from the motor fuel tax 07 imposed in AS 43.40. 08 * Sec. 2. AS 43.40.010(a) is amended to read: 09 (a) There is levied a tax of 20 [EIGHT] cents a gallon on all motor fuel sold or 10 otherwise transferred within the state, except that 11 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 12 (2) the tax on motor fuel used in and on watercraft of all descriptions is 13 five cents a gallon; and 14 (3) the tax on all aviation fuel other than gasoline is three and two-
01 tenths cents a gallon [; AND 02 (4) THE TAX RATE ON MOTOR FUEL THAT IS BLENDED 03 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 04 FUEL; HOWEVER, 05 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 06 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 07 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 08 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 09 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 10 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 11 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 12 (3) OF THIS SUBSECTION; 13 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 14 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL SOLD OR 15 OTHERWISE TRANSFERRED WITHIN THE STATE IS EIGHT CENTS A 16 GALLON LESS THAN THE TAX ON OTHER MOTOR FUEL NOT 17 DESCRIBED IN (1) - (3) OF THIS SUBSECTION IF THE MOTOR FUEL 18 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 19 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 20 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 21 PRODUCED IN A FACILITY THAT PROCESSES 22 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 23 THE RATE OF TAX APPLIES TO MOTOR FUEL SOLD OR 24 TRANSFERRED THAT CONTAINS ALCOHOL THAT WAS 25 PRODUCED ONLY DURING THE FIRST FIVE YEARS OF THE 26 FACILITY'S PROCESSING OF LIGNOCELLULOSE FROM 27 WOOD; OR 28 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 29 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 30 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 31 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT
01 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 02 FUEL SOLD OR TRANSFERRED THAT CONTAINS ALCOHOL 03 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 04 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 05 WASTE SEAFOOD]. 06 * Sec. 3. AS 43.40.010(b) is amended to read: 07 (b) There is levied a tax of 20 [EIGHT] cents a gallon on all motor fuel 08 consumed by a user, except that 09 (1) the tax on aviation gasoline consumed is four and seven-tenths 10 cents a gallon; 11 (2) the tax on motor fuel used in and on watercraft of all descriptions is 12 five cents a gallon; and 13 (3) the tax on all aviation fuel other than gasoline is three and two- 14 tenths cents a gallon [; AND 15 (4) THE TAX RATE ON MOTOR FUEL THAT IS BLENDED 16 WITH ALCOHOL IS THE SAME TAX RATE A GALLON AS OTHER MOTOR 17 FUEL; HOWEVER, 18 (A) IN AN AREA AND DURING THE MONTHS IN WHICH 19 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 20 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 21 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 22 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 23 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 24 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 25 (3) OF THIS SUBSECTION; 26 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 27 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL CONSUMED 28 BY A USER WITHIN THE STATE IS EIGHT CENTS A GALLON LESS 29 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
01 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 02 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 03 PRODUCED IN A FACILITY THAT PROCESSES 04 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 05 THE RATE OF TAX APPLIES TO MOTOR FUEL CONSUMED BY 06 A USER THAT CONTAINS ALCOHOL THAT WAS PRODUCED 07 ONLY DURING THE FIRST FIVE YEARS OF THE FACILITY'S 08 PROCESSING OF LIGNOCELLULOSE FROM WOOD; OR 09 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 10 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 11 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 12 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 13 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 14 FUEL CONSUMED BY A USER THAT CONTAINS ALCOHOL 15 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 16 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 17 WASTE SEAFOOD]. 18 * Sec. 4. AS 43.40.030(a) is amended to read: 19 (a) Except as specified in AS 43.40.010(j), a person, other than the Alaska 20 Railroad Corporation, who uses motor fuel to operate an internal combustion engine 21 is entitled to a refund of 18 [SIX] cents a gallon if 22 (1) the tax on the motor fuel has been paid; 23 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 24 watercraft; and 25 (3) the internal combustion engine is not used in or in conjunction with 26 a motor vehicle licensed to be operated on public ways. 27 * Sec. 5. AS 43.40.035 is amended by adding a new subsection to read: 28 (c) For fuel sold to federal, state, and local government agencies for official 29 use and purchased with a government credit card, the credit card issuer may apply for 30 a refund of any motor fuel tax assessed on the purchase if the tax is not billed by the 31 credit card issuer to the government agency making the purchase.
01 * Sec. 6. AS 43.40.050 is amended by adding a new subsection to read: 02 (d) A credit card issuer who claims a refund under AS 43.40.035 shall present 03 the refund claim to the department on a form prescribed by the department together 04 with documentation of the claim required by the department. 05 * Sec. 7. AS 43.40.100(2) is amended to read: 06 (2) "motor fuel" means fuel used in an engine for the propulsion of a 07 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 08 stationary engine, machine, or mechanical contrivance that is run by an internal 09 combustion motor; "motor fuel" does not include 10 (A) fuel consigned to foreign countries; 11 (B) fuel sold for use in jet propulsion aircraft operating in 12 flights 13 (i) to foreign countries; or 14 (ii) that continue from foreign countries, unless 15 exemption of the motor fuel from taxation is disallowed because of the 16 refiner's failure to comply with the provisions of a voluntary agreement 17 under AS 43.40.092 in conjunction with expansion of refinery capacity; 18 (C) fuel used in stationary power plants operating as public 19 utility plants and generating electrical energy for sale to the general public; 20 (D) fuel used by nonprofit power associations or corporations 21 for generating electric energy for resale; 22 (E) fuel used by charitable institutions; 23 (F) fuel sold or transferred between qualified dealers; 24 (G) fuel sold to federal, state, and local government agencies 25 for official use; for the purposes of this subparagraph, the Alaska Railroad 26 Corporation (AS 42.40) is not a federal, state, or local government agency; 27 (H) fuel used in stationary power plants that generate electrical 28 energy for private residential consumption; 29 (I) fuel used to heat private or commercial buildings or 30 facilities; 31 (J) fuel used for other nontaxable purposes as prescribed by
01 regulations adopted by the department; 02 (K) fuel used in stationary power plants of 100 kilowatts or less 03 that generate electrical power for commercial enterprises not for resale; or 04 (L) residual fuel oil used in and on watercraft if the residual 05 fuel oil is sold or transferred in the state or consumed by a user; for purposes of 06 this subparagraph, "residual fuel oil" means the heavy refined hydrocarbon 07 known as number 6 fuel oil that is the residue from crude oil after refined 08 petroleum products have been extracted by the refining process and that may 09 be consumed or used only when sufficient heat is provided to the oil to reduce 10 its viscosity rated by kinetic unit and to give it fluid properties sufficient for 11 pumping and combustion; 12 * Sec. 8. This Act takes effect July 1, 2003.