Enrolled HB 158: Relating to a refined fuel surcharge; relating to the motor fuel tax; relating to a qualified dealer license; and providing for an effective date.
00Enrolled HB 158 01 Relating to a refined fuel surcharge; relating to the motor fuel tax; relating to a qualified 02 dealer license; and providing for an effective date. 03 _______________ 04 * Section 1. AS 43.05.230(g) is amended to read: 05 (g) The information contained in a license issued by the commissioner of 06 revenue or the commissioner of commerce, community, and economic development 07 under AS 43.40, AS 43.50, AS 43.60, AS 43.65, AS 43.70, and AS 43.75 is public 08 information. 09 * Sec. 2. AS 43.40 is amended by adding new sections to read: 10 Sec. 43.40.005. Refined fuel surcharge levied. (a) Every dealer or user of 11 refined fuels shall pay a surcharge of $.0095 a gallon on refined fuel sold, transferred, 12 or used in the state. 13 (b) The following refined fuels are exempt from the surcharge imposed under 14 this section:
01 (1) fuel sold to a federal or state government agency for official use; 02 (2) fuel refined and used outside the United States; 03 (3) liquefied petroleum gas; 04 (4) aviation fuel; 05 (5) fuel sold or transferred between qualified dealers. 06 Sec. 43.40.007. Use of revenue derived from the refined fuel surcharge. 07 The legislature may appropriate the annual estimated balance of the surcharge levied 08 under AS 43.40.005 to the oil and hazardous substance release prevention account of 09 the oil and hazardous substance release prevention and response fund established in 10 AS 46.08.010. Nothing in this section creates a dedicated fund. 11 * Sec. 3. AS 43.40.010(a) is amended to read: 12 (a) In addition to the surcharge levied under AS 43.40.005, there [THERE] 13 is levied a tax of eight cents a gallon on all motor fuel sold or otherwise transferred 14 within the state, except that 15 (1) the tax on aviation gasoline is four and seven-tenths cents a gallon; 16 (2) the tax on motor fuel used in and on watercraft of all descriptions is 17 five cents a gallon; 18 (3) the tax on all aviation fuel other than gasoline is three and two- 19 tenths cents a gallon; and 20 (4) the tax rate on motor fuel that is blended with alcohol is the same 21 tax rate a gallon as other motor fuel; however, 22 [(A)] in an area and during the months in which fuel containing 23 alcohol is required to be sold, transferred, or used in an effort to attain air 24 quality standards for carbon monoxide as required by federal or state law or 25 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 26 gallon less than the tax on other motor fuel not described in (1) - (3) of this 27 subsection [; 28 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 29 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL SOLD OR 30 OTHERWISE TRANSFERRED WITHIN THE STATE IS EIGHT CENTS A 31 GALLON LESS THAN THE TAX ON OTHER MOTOR FUEL NOT
01 DESCRIBED IN (1) - (3) OF THIS SUBSECTION IF THE MOTOR FUEL 02 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 03 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 04 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 05 PRODUCED IN A FACILITY THAT PROCESSES 06 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 07 THE RATE OF TAX APPLIES TO MOTOR FUEL SOLD OR 08 TRANSFERRED THAT CONTAINS ALCOHOL THAT WAS 09 PRODUCED ONLY DURING THE FIRST FIVE YEARS OF THE 10 FACILITY'S PROCESSING OF LIGNOCELLULOSE FROM 11 WOOD; OR 12 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 13 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 14 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 15 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 16 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 17 FUEL SOLD OR TRANSFERRED THAT CONTAINS ALCOHOL 18 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 19 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 20 WASTE SEAFOOD]. 21 * Sec. 4. AS 43.40.010(b) is amended to read: 22 (b) In addition to the surcharge levied under AS 43.40.005, there 23 [THERE] is levied a tax of eight cents a gallon on all motor fuel consumed by a user, 24 except that 25 (1) the tax on aviation gasoline consumed is four and seven-tenths 26 cents a gallon; 27 (2) the tax on motor fuel used in and on watercraft of all descriptions is 28 five cents a gallon; 29 (3) the tax on all aviation fuel other than gasoline is three and two- 30 tenths cents a gallon; and 31 (4) the tax rate on motor fuel that is blended with alcohol is the same
01 tax rate a gallon as other motor fuel; however, 02 [(A)] in an area and during the months in which fuel containing 03 alcohol is required to be sold, transferred, or used in an effort to attain air 04 quality standards for carbon monoxide as required by federal or state law or 05 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a 06 gallon less than the tax on other motor fuel not described in (1) - (3) of this 07 subsection [; 08 (B) NOTWITHSTANDING (A) OF THIS PARAGRAPH, 09 THROUGH JUNE 30, 2004, THE TAX ON MOTOR FUEL CONSUMED 10 BY A USER WITHIN THE STATE IS EIGHT CENTS A GALLON LESS 11 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1) - 12 (3) OF THIS SUBSECTION IF THE MOTOR FUEL 13 (i) IS AT LEAST 10 PERCENT ALCOHOL BY 14 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 15 LIGNOCELLULOSE DERIVED FROM WOOD, AND WAS 16 PRODUCED IN A FACILITY THAT PROCESSES 17 LIGNOCELLULOSE FROM WOOD, BUT THIS REDUCTION IN 18 THE RATE OF TAX APPLIES TO MOTOR FUEL CONSUMED BY 19 A USER THAT CONTAINS ALCOHOL THAT WAS PRODUCED 20 ONLY DURING THE FIRST FIVE YEARS OF THE FACILITY'S 21 PROCESSING OF LIGNOCELLULOSE FROM WOOD; OR 22 (ii) IS AT LEAST 10 PERCENT ALCOHOL BY 23 VOLUME, HAS BEEN PRODUCED FROM THE PROCESSING OF 24 WASTE SEAFOOD, AND WAS PRODUCED IN A FACILITY 25 THAT PROCESSES ALCOHOL FROM WASTE SEAFOOD, BUT 26 THIS REDUCTION IN THE RATE OF TAX APPLIES TO MOTOR 27 FUEL CONSUMED BY A USER THAT CONTAINS ALCOHOL 28 THAT WAS PRODUCED ONLY DURING THE FIRST FIVE 29 YEARS OF THE FACILITY'S PROCESSING OF ALCOHOL FROM 30 WASTE SEAFOOD]. 31 * Sec. 5. AS 43.40.010(e) is amended to read:
01 (e) Sixty percent of the proceeds of the revenue from the motor fuel taxes on 02 aviation fuel, excluding the amount determined to have been spent by the state in its 03 collection, shall be refunded to a municipality owning and operating or leasing and 04 operating an airport in the proportion that the revenue was collected at the municipal 05 airport. All other proceeds of the motor fuel taxes on aviation fuel shall be paid into a 06 special aviation fuel tax account in the state general fund. The legislature may 07 appropriate funds from this account for capital or operating costs of airports 08 [AVIATION FACILITIES]. 09 * Sec. 6. AS 43.40 is amended by adding a new section to read: 10 Sec. 43.40.013. Collection of the refined fuel surcharge and the motor fuel 11 tax. Every dealer who sells or otherwise transfers refined or motor fuel in the state 12 shall collect the surcharge and tax required in this chapter at the time of sale, and remit 13 the total surcharge and tax collected during each calendar month of each year to the 14 department by the last day of each succeeding month. Every user shall likewise remit 15 the surcharge and tax required in this chapter and accrued on fuel actually used by the 16 user during each month. If the monthly return is timely filed, one percent of the total 17 monthly surcharge and tax due, limited to a maximum of $100, may be deducted and 18 retained to cover the expense of accounting and filing the monthly return. At the time 19 the remittance is made, each dealer or user shall submit a statement to the department 20 showing all fuel that the dealer or user has distributed or used during the month. 21 * Sec. 7. AS 43.40.015(c) is amended to read: 22 (c) A certificate of use obtained under this section must be renewed annually 23 for exemptions listed under AS 43.40.100(2). 24 * Sec. 8. AS 43.40.015(d) is amended to read: 25 (d) A certificate of use is not required under this section 26 (1) for fuel exempted under AS 43.40.100(2)(C) or (J); and 27 (2) for fuel exempted under AS 43.40.100(2)(I) other than fuel sold or 28 transferred under this exemption to a person who is engaged in construction or mining 29 activity. 30 * Sec. 9. AS 43.40.030 is amended to read: 31 Sec. 43.40.030. Refund of the motor fuel tax for nonhighway use. (a)
01 Except as specified in AS 43.40.010(j), a person who uses motor fuel to operate an 02 internal combustion engine is entitled to a motor fuel tax refund of six cents a gallon 03 if 04 (1) the tax on the motor fuel has been paid; 05 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 06 watercraft; and 07 (3) the internal combustion engine is not used in or in conjunction with 08 a motor vehicle licensed to be operated on public ways. 09 (b) The entire amount of the motor fuel tax levied by this chapter shall be 10 refunded to the purchaser on that part of the motor fuel used in a foreign country on 11 which the tax has been paid when the fuel is sold and delivered in the state for non- 12 highway use in a foreign country. 13 (c) The department shall establish the necessary regulations and prescribe the 14 appropriate forms to prove that, for purposes of the motor fuel tax, the motor fuel is 15 taken to and used in foreign countries. 16 (d) If a person obtains motor fuel on which the motor fuel tax levied by this 17 chapter has been paid and the motor fuel is exempt from the motor fuel tax, the 18 person is entitled to a refund of the motor fuel tax paid. 19 * Sec. 10. AS 43.40.035(a) is amended to read: 20 (a) A person who resells fuel on which a surcharge under AS 43.40.005 or 21 the tax under AS 43.40.010(a) or (b) was previously paid is entitled to a credit or 22 refund of (1) the motor fuel tax if [(1)] the resold fuel is not motor fuel and the 23 requirements of AS 43.40.015 have been fulfilled; or (2) the amount of surcharge or 24 tax previously paid exceeds the surcharge or tax due on the resale. The amount of the 25 credit or refund under this section is equal to the amount of the surcharge or tax 26 previously paid on the resold fuel less the amount of the surcharge or tax prescribed 27 by AS 43.40.005 or 43.40.010(a) or (b), respectively [AS 43.40.010(a) OR (b)]. 28 * Sec. 11. AS 43.40.035(c) is amended to read: 29 (c) For motor fuel sold to federal, state, and local government agencies for 30 official use and purchased with a government credit card, the credit card issuer may 31 apply for a refund of any motor fuel tax assessed on the purchase if the tax is not
01 billed by the credit card issuer to the government agency making the purchase. For 02 refined fuel sold to federal agencies for official use and purchased with a 03 government credit card, the credit card issuer may apply for a refund of any 04 refined fuel surcharge assessed on the purchase if the surcharge is not billed by 05 the credit card issuer to the government agency making the purchase. 06 * Sec. 12. AS 43.40.050(b) is amended to read: 07 (b) A claim for refund under AS 43.40.030 or 43.40.035 shall be filed within 08 one year after [FROM] the date of the purchase of the refined or motor fuel as 09 indicated on the invoice, and failure to file within the one-year period is a waiver of 10 the right to the refund. A claim is considered to be filed when the claim is mailed or 11 personally presented to an office of the department. 12 * Sec. 13. AS 43.40.060 is amended to read: 13 Sec. 43.40.060. Separate invoices. The department may require the issuance 14 of separate invoices for refined or motor fuel sold, distributed, or transferred when 15 the invoices will be the basis for a refund claim. 16 * Sec. 14. AS 43.40.070 is amended to read: 17 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim of the 18 motor fuel tax by the department, a disbursement shall be made from the highway 19 fuel tax account in the general fund in favor of the applicant in the amount of the 20 claim. 21 * Sec. 15. AS 43.40.070 is amended by adding a new subsection to read: 22 (b) Upon approval of a refund claim of the refined fuel surcharge by the 23 department, a disbursement shall be made from the oil and hazardous substance 24 release prevention account of the oil and hazardous substance release prevention and 25 response fund established in AS 46.08.010 in favor of the applicant in the amount of 26 the claim. 27 * Sec. 16. AS 43.40.080(a) is amended to read: 28 (a) To determine the validity of a claim for refund, the department may 29 examine the books and records of the claimant and the books and records of a 30 distributor of the refined or motor fuel. The department may cancel the refund 31 [PERMIT] of a [THE] claimant relying on [UPON] a fraudulent invoice [FOR A
01 PERIOD OF NOT MORE THAN ONE YEAR]. 02 * Sec. 17. AS 43.40.085 is amended to read: 03 Sec. 43.40.085. Preservation of books and records. Dealers and users shall 04 preserve for three years all books and records pertaining to sales, transfers, and uses of 05 refined or motor fuel that are subject to a surcharge or tax [TAXED] under this 06 chapter. 07 * Sec. 18. AS 43.40.092(a) is amended to read: 08 (a) The provisions of this section apply to disallow the exemption from the 09 motor fuel tax for motor fuel sold for use by a dealer or used by a user in jet 10 propulsion aircraft operating in flights that continue from foreign countries if, for 11 motor fuel produced by a refiner, 12 (1) the refiner determines, on or after July 1, 1997, that the refiner will 13 expand capacity or expand the refinery to produce more residual fuel oil used in 14 watercraft; 15 (2) on or after the July 1, 1997, the refiner has voluntarily committed 16 by agreement entered into with the commissioner that, if the refiner expands its oil 17 refining capacity in order to produce additional supplies of fuel for use in jet 18 propulsion aircraft that qualify for the tax exemption, when the refiner expands 19 capacity, the refiner will 20 (A) use the refiner's best efforts to advertise for, recruit, and 21 employ in the construction activities associated with expanding refinery 22 capacity resident workers who have experience in the specific fields in which 23 they are hired to work; 24 (B) contract with licensed Alaska firms to prepare materials 25 that are used in construction activities and to provide services in conjunction 26 with activities associated with expanded refinery capacity and, in contracting 27 with those firms, to encourage the refiner's contractors to employ and, when 28 necessary, train state residents; and 29 (C) enter into contracts with Alaska-licensed vendors, 30 contractors, and suppliers for the provision of supplies and services used in 31 conjunction with activities associated with expanding refinery capacity; and
01 (3) the commissioner determines that a dealer or user claiming the 02 exemption for motor fuel acquired from a refiner who has entered into an agreement 03 described in (2) of this subsection acquired the motor fuel for which the exemption is 04 claimed from a refiner who has not complied with the requirements of the agreement 05 in completing expansion of its oil refining capacity under the agreement described in 06 (1) of this subsection. 07 * Sec. 19. AS 43.40 is amended by adding a new section to read: 08 Sec. 43.40.094. Qualified dealer license. (a) A dealer is eligible for a qualified 09 dealer license if the dealer sells at least 50 percent of fuel acquired to unrelated 10 persons for any combination of the following purposes: 11 (1) resale; 12 (2) use in heating private or commercial buildings or facilities; 13 (3) use in jet propulsion aircraft; 14 (4) motor fuel. 15 (b) A person applying for a qualified dealer license must use a form or format 16 prescribed by the department. At the time of application, the applicant must provide an 17 estimate of the average number of gallons of fuel subject to surcharge or tax each 18 month during a calendar year, and state the estimated amount of surcharge and tax on 19 those gallons. A license issued under this section is not transferable. 20 (c) The department may not issue or renew a qualified dealer license if 21 (1) the department finds that the applicant or qualified dealer has 22 withheld information required in the application or that the information submitted in 23 the application is false or misleading; 24 (2) the applicant, or a responsible person of a business organization 25 that is applying for the license, has been convicted within the last 10 years, in this state 26 or in any other taxing jurisdiction, of crimes involving a fuel surcharge or tax; 27 (3) the qualified dealer fails to comply with a requirement of this 28 chapter; 29 (4) the qualified dealer has failed to pay in full the surcharge, taxes, 30 interest, and penalties levied under AS 43.05 or this chapter. 31 (d) The department may
01 (1) issue only one qualified dealer license to each person; 02 (2) put additional limitations on the applicant or holder of a qualified 03 dealer license. 04 (e) A license issued under this section expires on June 30 following the date of 05 issue. Before a license issued under this section expires, the licensee may apply to 06 renew the license, on a form or in a format prescribed by the department, for one year 07 after the expiration date of the license. 08 (f) If the department determines a qualified dealer license may not be issued or 09 renewed under this section, the department shall mail or electronically deliver a notice 10 of license denial or nonrenewal to the person whose license was denied or not 11 renewed. The person may appeal a notice of license denial or nonrenewal not later 12 than 10 days after the date the notice was mailed or electronically delivered. 13 (g) The department may, at the time an applicant applies for a qualified dealer 14 license, require the applicant to file a bond or other security with the department in an 15 amount equal to twice the estimated surcharge and tax due to the department in one 16 month, or $5,000, whichever is greater. 17 (h) The department may adopt regulations to implement this section, including 18 regulations relating to the revocation of a license. 19 * Sec. 20. AS 43.40.100(1) is amended to read: 20 (1) "dealer" means a person who sells or otherwise transfers in this 21 state refined or motor fuel on [UPON] which the surcharge or tax [TAXES] 22 imposed by this chapter has [HAVE] not been paid; 23 * Sec. 21. AS 43.40.100(3) is amended to read: 24 (3) "qualified dealer" means a person who (A) refines, (B) imports, (C) 25 manufactures, (D) produces, (E) compounds, or (F) wholesales refined or motor fuel 26 [, WHO SATISFIES CRITERIA FOR QUALIFIED DEALERS ESTABLISHED BY 27 THE DEPARTMENT BY REGULATION, AND WHO OBTAINS A QUALIFIED 28 DEALER'S LICENSE FROM THE DEPARTMENT]; 29 * Sec. 22. AS 43.40.100(4) is amended to read: 30 (4) "user" means a person consuming or using refined or motor fuel, 31 who
01 (A) purchases the fuel out of the state and ships it into the state 02 for personal use in the state; 03 (B) manufactures the fuel in the state; or 04 (C) purchases or receives fuel in the state that is not subject to 05 the surcharge or tax under this chapter [TAXED] at the time of purchase or 06 receipt or is subject to a surcharge or tax [TAXED AT A RATE] that is less 07 than the rate prescribed by AS 43.40.005 or 43.40.010 [AS 43.40.010]. 08 * Sec. 23. AS 43.40.100 is amended by adding a new paragraph to read: 09 (5) "refined fuel" means fuel produced from oil that is used in an 10 engine, machine, or contrivance that creates heat, energy, or power. 11 * Sec. 24. AS 43.40.010(c) is repealed. 12 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 QUALIFIED DEALER LICENSE; REGULATIONS. To the extent current 15 regulations are consistent with this Act, the regulations previously adopted by the Department 16 of Revenue relating to qualified dealers and qualified dealer licenses under AS 43.40.100 17 shall apply to qualified dealers and qualified dealer licenses until the regulations are amended 18 to be consistent with this Act. 19 * Sec. 26. This Act takes effect July 1, 2015.