CSSB 132(TRA): "An Act relating to the motor fuel tax; relating to the duties of the commissioner of revenue; and providing for an effective date."
00 CS FOR SENATE BILL NO. 132(TRA) 01 "An Act relating to the motor fuel tax; relating to the duties of the commissioner of 02 revenue; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.40.010(a) is amended to read: 05 (a) In addition to the surcharge levied under AS 43.40.005, 06 (1) if the average price per barrel for Alaska North Slope crude oil 07 for sale on the United States West Coast during the previous calendar year is 08 more than $85, there is levied a tax of eight cents a gallon on all motor fuel sold or 09 otherwise transferred within the state, except that the tax on 10 (A) [(1) THE TAX ON] aviation gasoline is four and seven- 11 tenths cents a gallon; 12 (B) [(2) THE TAX ON] motor fuel used in and on watercraft of 13 all descriptions is five cents a gallon; 14 (C) [(3) THE TAX ON] all aviation fuel other than gasoline is
01 three and two-tenths cents a gallon; and 02 (D) [(4) THE TAX RATE ON] motor fuel that is blended with 03 alcohol is the same tax rate a gallon as other motor fuel; however, in an area 04 and during the months in which fuel containing alcohol is required to be sold, 05 transferred, or used in an effort to attain air quality standards for carbon 06 monoxide as required by federal or state law or regulation, the tax rate on 07 motor fuel that is blended with alcohol is six cents a gallon less than the tax on 08 other motor fuel not described in (A) - (C) [(1) - (3)] of this paragraph; or 09 (2) if the average price per barrel for Alaska North Slope crude oil 10 for sale on the United States West Coast during the previous calendar year is less 11 than or equal to $85, there is levied a tax of 16 cents a gallon on all motor fuel 12 sold or otherwise transferred within the state, except that the tax on 13 (A) aviation gasoline is 10 cents a gallon; 14 (B) motor fuel used in and on watercraft of all descriptions 15 is 10 cents a gallon; 16 (C) all aviation fuel other than gasoline is 10 cents a gallon; 17 and 18 (D) motor fuel that is blended with alcohol is the same tax 19 rate a gallon as other motor fuel; however, in an area and during the 20 months in which fuel containing alcohol is required to be sold, 21 transferred, or used in an effort to attain air quality standards for carbon 22 monoxide as required by federal or state law or regulation, the tax rate on 23 motor fuel that is blended with alcohol is six cents a gallon less than the 24 tax on other motor fuel not described in (A) - (C) of this paragraph 25 [SUBSECTION]. 26 * Sec. 2. AS 43.40.010(a), as amended by sec. 1 of this Act, is amended to read: 27 (a) In addition to the surcharge levied under AS 43.40.005,[(1) IF THE 28 AVERAGE PRICE PER BARREL FOR ALASKA NORTH SLOPE CRUDE OIL 29 FOR SALE ON THE UNITED STATES WEST COAST DURING THE PREVIOUS 30 CALENDAR YEAR IS MORE THAN $85,] there is levied a tax of eight cents a 31 gallon on all motor fuel sold or otherwise transferred within the state, except that the
01 tax on 02 (1) [(A)] aviation gasoline is four and seven-tenths cents a gallon; 03 (2) [(B)] motor fuel used in and on watercraft of all descriptions is five 04 cents a gallon; 05 (3) [(C)] all aviation fuel other than gasoline is three and two-tenths 06 cents a gallon; and 07 (4) [(D)] motor fuel that is blended with alcohol is the same tax rate a 08 gallon as other motor fuel; however, in an area and during the months in which fuel 09 containing alcohol is required to be sold, transferred, or used in an effort to attain air 10 quality standards for carbon monoxide as required by federal or state law or 11 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 12 less than the tax on other motor fuel not described in (1) - (3) [(A) - (C)] of this 13 subsection [PARAGRAPH; OR 14 (2) IF THE AVERAGE PRICE PER BARREL FOR ALASKA 15 NORTH SLOPE CRUDE OIL FOR SALE ON THE UNITED STATES WEST 16 COAST DURING THE PREVIOUS CALENDAR YEAR IS LESS THAN OR 17 EQUAL TO $85, THERE IS LEVIED A TAX OF 16 CENTS A GALLON ON ALL 18 MOTOR FUEL SOLD OR OTHERWISE TRANSFERRED WITHIN THE STATE, 19 EXCEPT THAT THE TAX ON 20 (A) AVIATION GASOLINE IS 10 CENTS A GALLON; 21 (B) MOTOR FUEL USED IN AND ON WATERCRAFT OF 22 ALL DESCRIPTIONS IS 10 CENTS A GALLON; 23 (C) ALL AVIATION FUEL OTHER THAN GASOLINE IS 24 10 CENTS A GALLON; AND 25 (D) MOTOR FUEL THAT IS BLENDED WITH ALCOHOL 26 IS THE SAME TAX RATE A GALLON AS OTHER MOTOR FUEL; 27 HOWEVER, IN AN AREA AND DURING THE MONTHS IN WHICH 28 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 29 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 30 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 31 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL
01 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 02 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (A) - 03 (C) OF THIS PARAGRAPH]. 04 * Sec. 3. AS 43.40.010(b) is amended to read: 05 (b) In addition to the surcharge levied under AS 43.40.005, 06 (1) if the average price per barrel for Alaska North Slope crude oil 07 for sale on the United States West Coast during the previous calendar year is 08 more than $85, there is levied a tax of eight cents a gallon on all motor fuel consumed 09 by a user, except that the tax on 10 (A) [(1) THE TAX ON] aviation gasoline consumed is four and 11 seven-tenths cents a gallon; 12 (B) [(2) THE TAX ON] motor fuel used in and on watercraft of 13 all descriptions is five cents a gallon; 14 (C) [(3) THE TAX ON] all aviation fuel other than gasoline is 15 three and two-tenths cents a gallon; and 16 (D) [(4) THE TAX RATE ON] motor fuel that is blended with 17 alcohol is the same tax rate a gallon as other motor fuel; however, in an area 18 and during the months in which fuel containing alcohol is required to be sold, 19 transferred, or used in an effort to attain air quality standards for carbon 20 monoxide as required by federal or state law or regulation, the tax rate on 21 motor fuel that is blended with alcohol is six cents a gallon less than the tax on 22 other motor fuel not described in (A) - (C) [(1) - (3)] of this paragraph; or 23 (2) if the average price per barrel for Alaska North Slope crude oil 24 for sale on the United States West Coast during the previous calendar year is less 25 than or equal to $85, there is levied a tax of 16 cents a gallon on all motor fuel 26 sold or otherwise transferred within the state, except that the tax on 27 (A) aviation gasoline consumed is 10 cents a gallon; 28 (B) motor fuel used in and on watercraft of all descriptions 29 is 10 cents a gallon; 30 (C) all aviation fuel other than gasoline is 10 cents a gallon; 31 and
01 (D) motor fuel that is blended with alcohol is the same tax 02 rate a gallon as other motor fuel; however, in an area and during the 03 months in which fuel containing alcohol is required to be sold, 04 transferred, or used in an effort to attain air quality standards for carbon 05 monoxide as required by federal or state law or regulation, the tax rate on 06 motor fuel that is blended with alcohol is six cents a gallon less than the 07 tax on other motor fuel not described in (A) - (C) of this paragraph 08 [SUBSECTION]. 09 * Sec. 4. AS 43.40.010(b), as amended by sec. 3 of this Act, is amended to read: 10 (b) In addition to the surcharge levied under AS 43.40.005, [(1) IF THE 11 AVERAGE PRICE PER BARREL FOR ALASKA NORTH SLOPE CRUDE OIL 12 FOR SALE ON THE UNITED STATES WEST COAST DURING THE PREVIOUS 13 CALENDAR YEAR IS MORE THAN $85,] there is levied a tax of eight cents a 14 gallon on all motor fuel consumed by a user, except that the tax on 15 (1) [(A)] aviation gasoline consumed is four and seven-tenths cents a 16 gallon; 17 (2) [(B)] motor fuel used in and on watercraft of all descriptions is five 18 cents a gallon; 19 (3) [(C)] all aviation fuel other than gasoline is three and two-tenths 20 cents a gallon; and 21 (4) [(D)] motor fuel that is blended with alcohol is the same tax rate a 22 gallon as other motor fuel; however, in an area and during the months in which fuel 23 containing 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 gallon 26 less than the tax on other motor fuel not described in (1) - (3) [(A) - (C)] of this 27 subsection [PARAGRAPH; OR 28 (2) IF THE AVERAGE PRICE PER BARREL FOR ALASKA 29 NORTH SLOPE CRUDE OIL FOR SALE ON THE UNITED STATES WEST 30 COAST DURING THE PREVIOUS CALENDAR YEAR IS LESS THAN OR 31 EQUAL TO $85, THERE IS LEVIED A TAX OF 16 CENTS A GALLON ON ALL
01 MOTOR FUEL SOLD OR OTHERWISE TRANSFERRED WITHIN THE STATE, 02 EXCEPT THAT THE TAX ON 03 (A) AVIATION GASOLINE CONSUMED IS 10 CENTS A 04 GALLON; 05 (B) MOTOR FUEL USED IN AND ON WATERCRAFT OF 06 ALL DESCRIPTIONS IS 10 CENTS A GALLON; 07 (C) ALL AVIATION FUEL OTHER THAN GASOLINE IS 08 10 CENTS A GALLON; AND 09 (D) MOTOR FUEL THAT IS BLENDED WITH ALCOHOL 10 IS THE SAME TAX RATE A GALLON AS OTHER MOTOR FUEL; 11 HOWEVER, IN AN AREA AND DURING THE MONTHS IN WHICH 12 FUEL CONTAINING ALCOHOL IS REQUIRED TO BE SOLD, 13 TRANSFERRED, OR USED IN AN EFFORT TO ATTAIN AIR QUALITY 14 STANDARDS FOR CARBON MONOXIDE AS REQUIRED BY FEDERAL 15 OR STATE LAW OR REGULATION, THE TAX RATE ON MOTOR FUEL 16 THAT IS BLENDED WITH ALCOHOL IS SIX CENTS A GALLON LESS 17 THAN THE TAX ON OTHER MOTOR FUEL NOT DESCRIBED IN (1)(A) 18 - (C) OF THIS SUBSECTION]. 19 * Sec. 5. AS 43.40.010 is amended by adding new subsections to read: 20 (m) The following motor fuel is exempt from taxation under this section: 21 (1) fuel consigned to foreign countries; 22 (2) fuel sold for use in jet propulsion aircraft operating in flights 23 (A) to foreign countries; or 24 (B) that continue from foreign countries, unless exemption of 25 the motor fuel from taxation is disallowed because of the refiner's failure to 26 comply with the provisions of a voluntary agreement under AS 43.40.092 in 27 conjunction with expansion of refinery capacity; 28 (3) fuel used in stationary power plants operating as public utility 29 plants and generating electrical energy for sale to the general public; 30 (4) fuel used by nonprofit power associations or corporations for 31 generating electric energy for resale;
01 (5) fuel used by charitable institutions; 02 (6) fuel sold or transferred between qualified dealers; 03 (7) fuel sold to federal, state, and local government agencies for 04 official use; 05 (8) fuel used in stationary power plants that generate electrical energy 06 for private residential consumption; 07 (9) fuel used to heat private or commercial buildings or facilities; 08 (10) fuel used for other nontaxable purposes as prescribed by 09 regulations adopted by the department; 10 (11) fuel used in stationary power plants of 100 kilowatts or less that 11 generate electrical power for commercial enterprises not for resale; 12 (12) residual fuel oil used in and on watercraft if the residual fuel oil is 13 sold or transferred in the state or consumed by a user; in this paragraph, "residual fuel 14 oil" means the heavy refined hydrocarbon known as number 6 fuel oil that is the 15 residue from crude oil after refined petroleum products have been extracted by the 16 refining process and that may be consumed or used only when sufficient heat is 17 provided to the oil to reduce its viscosity rated by kinetic unit and to give it fluid 18 properties sufficient for pumping and combustion; 19 (13) fuel used in an emergency vehicle, as defined in AS 11.56.825; or 20 (14) fuel used for student transportation services for which a school 21 district receives funding under AS 14.09.010. 22 (n) As soon as practicable after the end of a fiscal year, the commissioner shall 23 publish an accounting of the 24 (1) sources of motor fuels for which taxes were collected under this 25 section during the fiscal year; 26 (2) amount of tax revenue deposited in the accounts described in (e) - 27 (g) and (j) of this section during the fiscal year; and 28 (3) appropriation and expenditure of funds deposited in the accounts 29 described in (e) - (g) and (j) of this section during the previous fiscal year. 30 * Sec. 6. AS 43.40.015(c) is amended to read: 31 (c) A certificate of use obtained under this section must be renewed annually
01 for exemptions listed under AS 43.40.010(m) [AS 43.40.100(2)]. 02 * Sec. 7. AS 43.40.015(d) is amended to read: 03 (d) A certificate of use is not required under this section 04 (1) for fuel exempted under AS 43.40.010(m)(3) or (10) 05 [AS 43.40.100(2)(C) OR (J)]; and 06 (2) for fuel exempted under AS 43.40.010(m)(9) [AS 43.40.100(2)(I)] 07 other than fuel sold or transferred under this exemption to a person who is engaged in 08 construction or mining activity. 09 * Sec. 8. AS 43.40.030(a) is amended to read: 10 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 11 operate an internal combustion engine is entitled to a motor fuel tax refund of six cents 12 a gallon if the tax was paid under AS 43.40.010(a)(1) or (b)(1) or 12 cents a gallon 13 if the tax was paid under AS 43.40.010(a)(2) or (b)(2), and if 14 (1) the tax on the motor fuel has been paid; 15 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 16 watercraft; and 17 (3) the internal combustion engine is not used in or in conjunction with 18 a motor vehicle licensed to be operated on public ways. 19 * Sec. 9. AS 43.40.030(a), as amended by sec. 8 of this Act, is amended to read: 20 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 21 operate an internal combustion engine is entitled to a motor fuel tax refund of six cents 22 a gallon [IF THE TAX WAS PAID UNDER AS 43.40.010(a)(1) OR (b)(1) OR 12 23 CENTS A GALLON IF THE TAX WAS PAID UNDER AS 43.40.010(a)(2) OR 24 (b)(2), AND] if 25 (1) the tax on the motor fuel has been paid; 26 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 27 watercraft; and 28 (3) the internal combustion engine is not used in or in conjunction with 29 a motor vehicle licensed to be operated on public ways. 30 * Sec. 10. AS 43.40.100(2) is amended to read: 31 (2) "motor fuel" means fuel used in an engine for the propulsion of a
01 motor vehicle or aircraft, and fuel used in and on watercraft for any purpose, or in a 02 stationary engine, machine, or mechanical contrivance that is run by an internal 03 combustion motor; ["MOTOR FUEL" DOES NOT INCLUDE 04 (A) FUEL CONSIGNED TO FOREIGN COUNTRIES; 05 (B) FUEL SOLD FOR USE IN JET PROPULSION 06 AIRCRAFT OPERATING IN FLIGHTS 07 (i) TO FOREIGN COUNTRIES; OR 08 (ii) THAT CONTINUE FROM FOREIGN 09 COUNTRIES, UNLESS EXEMPTION OF THE MOTOR FUEL 10 FROM TAXATION IS DISALLOWED BECAUSE OF THE 11 REFINER'S FAILURE TO COMPLY WITH THE PROVISIONS OF 12 A VOLUNTARY AGREEMENT UNDER AS 43.40.092 IN 13 CONJUNCTION WITH EXPANSION OF REFINERY CAPACITY; 14 (C) FUEL USED IN STATIONARY POWER PLANTS 15 OPERATING AS PUBLIC UTILITY PLANTS AND GENERATING 16 ELECTRICAL ENERGY FOR SALE TO THE GENERAL PUBLIC; 17 (D) FUEL USED BY NONPROFIT POWER 18 ASSOCIATIONS OR CORPORATIONS FOR GENERATING ELECTRIC 19 ENERGY FOR RESALE; 20 (E) FUEL USED BY CHARITABLE INSTITUTIONS; 21 (F) FUEL SOLD OR TRANSFERRED BETWEEN 22 QUALIFIED DEALERS; 23 (G) FUEL SOLD TO FEDERAL, STATE, AND LOCAL 24 GOVERNMENT AGENCIES FOR OFFICIAL USE; 25 (H) FUEL USED IN STATIONARY POWER PLANTS 26 THAT GENERATE ELECTRICAL ENERGY FOR PRIVATE 27 RESIDENTIAL CONSUMPTION; 28 (I) FUEL USED TO HEAT PRIVATE OR COMMERCIAL 29 BUILDINGS OR FACILITIES; 30 (J) FUEL USED FOR OTHER NONTAXABLE PURPOSES 31 AS PRESCRIBED BY REGULATIONS ADOPTED BY THE
01 DEPARTMENT; 02 (K) FUEL USED IN STATIONARY POWER PLANTS OF 03 100 KILOWATTS OR LESS THAT GENERATE ELECTRICAL POWER 04 FOR COMMERCIAL ENTERPRISES NOT FOR RESALE; OR 05 (L) RESIDUAL FUEL OIL USED IN AND ON 06 WATERCRAFT IF THE RESIDUAL FUEL OIL IS SOLD OR 07 TRANSFERRED IN THE STATE OR CONSUMED BY A USER; FOR 08 PURPOSES OF THIS SUBPARAGRAPH, "RESIDUAL FUEL OIL" 09 MEANS THE HEAVY REFINED HYDROCARBON KNOWN AS 10 NUMBER 6 FUEL OIL THAT IS THE RESIDUE FROM CRUDE OIL 11 AFTER REFINED PETROLEUM PRODUCTS HAVE BEEN EXTRACTED 12 BY THE REFINING PROCESS AND THAT MAY BE CONSUMED OR 13 USED ONLY WHEN SUFFICIENT HEAT IS PROVIDED TO THE OIL TO 14 REDUCE ITS VISCOSITY RATED BY KINETIC UNIT AND TO GIVE IT 15 FLUID PROPERTIES SUFFICIENT FOR PUMPING AND 16 COMBUSTION;] 17 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. AS 43.40.030(a), as amended by sec. 9 of this Act, applies to a 20 motor fuel tax refund on motor fuel used, transferred, or sold on or after the effective date of 21 sec. 9 of this Act. 22 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITIONAL PROVISION: REGULATIONS. The Department of Revenue may 25 adopt regulations necessary to implement the changes made by this Act. The regulations take 26 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 27 law implemented by the regulation. 28 * Sec. 13. Section 12 of this Act takes effect immediately under AS 01.10.070(c). 29 * Sec. 14. Sections 2, 4, and 9 of this Act take effect July 1, 2018. 30 * Sec. 15. Except as provided in secs. 13 and 14 of this Act, this Act takes effect July 1, 31 2016.