CSHB 60(TRA): "An Act relating to the motor fuel tax; relating to the disposition of revenue from the motor fuel tax; establishing and relating to a transportation maintenance fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 60(TRA) 01 "An Act relating to the motor fuel tax; relating to the disposition of revenue from the 02 motor fuel tax; establishing and relating to a transportation maintenance fund; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature that 08 (1) except as provided in AS 43.40.010(e), all proceeds from the tax on 09 aviation fuel imposed under AS 43.40.010 be expended for the direct capital, operating, or 10 maintenance costs of airport infrastructure; 11 (2) all proceeds from the tax on motor fuels used in boats and watercraft 12 imposed under AS 43.40.010 be expended for the direct capital, operating, or maintenance 13 costs of water and harbor infrastructure and facilities; 14 (3) all proceeds from the tax on motor fuel used in snow vehicles, unless a
01 refund is applied for under AS 43.40.050(a), be expended for trail staking and shelter 02 construction and maintenance; and 03 (4) all proceeds from the tax on motor fuels imposed under AS 43.40.010, 04 except as provided in AS 43.40.010(e), (f), and (j), be expended for direct capital, operating, 05 or maintenance costs of highways and highway infrastructure, construction of highway 06 projects and ferries, and other highway costs. 07 * Sec. 2. AS 29.60.800(a) is amended to read: 08 (a) There is established the harbor facility grant fund consisting of money 09 appropriated to the fund. Each fiscal year, the legislature may appropriate money to 10 the fund from the watercraft fuel tax account (AS 43.40.010(f)) in the transportation 11 maintenance fund (AS 43.40.045) and from the fisheries business tax collected under 12 AS 43.75.015 after payments to municipalities are made under AS 43.75.130. The 13 legislature may make other appropriations to the fund. The legislature may appropriate 14 to the fund income earned on money in the fund. 15 * Sec. 3. AS 43.40.010(a) is amended to read: 16 (a) In addition to the surcharge levied under AS 43.40.005, there is levied a 17 tax of 16 [EIGHT] cents a gallon on all motor fuel sold or otherwise transferred within 18 the state, except that 19 (1) the tax on aviation gasoline is 9.4 [FOUR AND SEVEN-TENTHS] 20 cents a gallon; 21 (2) the tax on motor fuel used in and on watercraft of all descriptions is 22 10 [FIVE] cents a gallon; 23 (3) the tax on all aviation fuel other than gasoline is 6.4 [THREE AND 24 TWO-TENTHS] cents a gallon; and 25 (4) the tax rate on motor fuel that is blended with alcohol is the same 26 tax rate a gallon as other motor fuel; however, in an area and during the months in 27 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 28 attain air quality standards for carbon monoxide as required by federal or state law or 29 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 30 less than the tax on other motor fuel not described in (1) - (3) of this subsection. 31 * Sec. 4. AS 43.40.010(a), as amended by sec. 3 of this Act, is amended to read:
01 (a) In addition to the surcharge levied under AS 43.40.005, there is levied a 02 tax of 24 [16] cents a gallon on all motor fuel sold or otherwise transferred within the 03 state, except that 04 (1) the tax on aviation gasoline is 14.1 [9.4] cents a gallon; 05 (2) the tax on motor fuel used in and on watercraft of all descriptions is 06 15 [10] cents a gallon; 07 (3) the tax on all aviation fuel other than gasoline is 9.6 [6.4] cents a 08 gallon; and 09 (4) the tax rate on motor fuel that is blended with alcohol is the same 10 tax rate a gallon as other motor fuel; however, in an area and during the months in 11 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 12 attain air quality standards for carbon monoxide as required by federal or state law or 13 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 14 less than the tax on other motor fuel not described in (1) - (3) of this subsection. 15 * Sec. 5. AS 43.40.010(b) is amended to read: 16 (b) In addition to the surcharge levied under AS 43.40.005, there is levied a 17 tax of 16 [EIGHT] cents a gallon on all motor fuel consumed by a user, except that 18 (1) the tax on aviation gasoline consumed is 9.4 [FOUR AND 19 SEVEN-TENTHS] cents a gallon; 20 (2) the tax on motor fuel used in and on watercraft of all descriptions is 21 10 [FIVE] cents a gallon; 22 (3) the tax on all aviation fuel other than gasoline is 6.4 [THREE AND 23 TWO-TENTHS] cents a gallon; and 24 (4) the tax rate on motor fuel that is blended with alcohol is the same 25 tax rate a gallon as other motor fuel; however, in an area and during the months in 26 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 27 attain air quality standards for carbon monoxide as required by federal or state law or 28 regulation, the tax rate on motor fuel that is blended with alcohol is six cents a gallon 29 less than the tax on other motor fuel not described in (1) - (3) of this subsection. 30 * Sec. 6. AS 43.40.010(b), as amended by sec. 5 of this Act, is amended to read: 31 (b) In addition to the surcharge levied under AS 43.40.005, there is levied a
01 tax of 24 [16] cents a gallon on all motor fuel consumed by a user, except that 02 (1) the tax on aviation gasoline consumed is 14.1 [9.4] cents a gallon; 03 (2) the tax on motor fuel used in and on watercraft of all descriptions is 04 15 [10] cents a gallon; 05 (3) the tax on all aviation fuel other than gasoline is 9.6 [6.4] cents a 06 gallon; and 07 (4) the tax rate on motor fuel that is blended with alcohol is the same 08 tax rate a gallon as other motor fuel; however, in an area and during the months in 09 which fuel containing alcohol is required to be sold, transferred, or used in an effort to 10 attain air 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) of this subsection. 13 * Sec. 7. AS 43.40.010(e) is amended to read: 14 (e) Sixty percent of the proceeds of the revenue from the motor fuel taxes on 15 aviation fuel, excluding the amount determined to have been spent by the state in its 16 collection, shall be refunded to a municipality owning and operating or leasing and 17 operating an airport in the proportion that the revenue was collected at the municipal 18 airport. All other proceeds of the motor fuel taxes on aviation fuel shall be paid into a 19 special aviation fuel tax account in the state general fund. Except as otherwise 20 provided in this subsection, each fiscal year, the [THE] legislature may appropriate 21 the balance of the [FUNDS FROM THIS] account for direct capital, [OR] operating, 22 or maintenance costs of airport infrastructure [AIRPORTS]. Money remaining in 23 the special aviation fuel tax account at the end of a fiscal year does not lapse and 24 remains available for appropriation under this subsection. 25 * Sec. 8. AS 43.40.010(f) is amended to read: 26 (f) The proceeds from the revenue from the tax on motor fuel used in boats 27 and watercraft of all descriptions shall be deposited in a special watercraft fuel tax 28 account in the transportation maintenance [GENERAL] fund (AS 43.40.045). 29 Except as otherwise provided in this subsection, each fiscal year, the [THE] 30 legislature may appropriate the balance of the [FROM THIS] account for direct 31 capital, operating, or maintenance costs of water and harbor infrastructure and
01 facilities. Money remaining in the special watercraft fuel tax account at the end of 02 a fiscal year does not lapse and remains available for appropriation under this 03 subsection. 04 * Sec. 9. AS 43.40.010(g) is amended to read: 05 (g) The proceeds of the revenue from the tax on all motor fuels, except as 06 provided in (e), (f) and (j) of this section, shall be deposited in a special highway fuel 07 tax account in the transportation maintenance [STATE GENERAL] fund 08 (AS 43.40.045). Except as otherwise provided in this subsection and 09 AS 43.40.070(a), each fiscal year, the [THE] legislature may appropriate the entire 10 balance of the account [FUNDS FROM IT] for expenditure by the Department of 11 Transportation and Public Facilities directly or as matched with available federal-aid 12 highway money for direct capital, operating, or maintenance costs of highways and 13 highway infrastructure, construction of highway projects and ferries included in the 14 program provided for in AS 19.10.150, including approaches, appurtenances, and 15 related facilities and acquisition of rights-of-way, [OR] easements, or surveys. Money 16 remaining in the special highway fuel tax account at the end of a fiscal year does 17 not lapse and remains available for appropriation under this subsection [AND 18 OTHER HIGHWAY COSTS INCLUDING SURVEYS, ADMINISTRATION, AND 19 RELATED MATTERS]. All departments of the state government authorized to spend 20 funds collected from taxes imposed by this chapter shall perform, when feasible, all 21 construction or reconstruction projects by contract after the projects have been 22 advertised for competitive bids, except that, when feasible, arrangements shall be 23 made with political subdivisions to carry out the construction or reconstruction 24 projects. If it is not feasible for the work to be performed by state engineering forces, 25 the commissioner of transportation and public facilities may contract on a professional 26 basis with private engineering firms for road design, bridge design, and services in 27 connection with surveys. If more than one private engineering firm is available for the 28 work the contracts shall be entered into on a negotiated basis. 29 * Sec. 10. AS 43.40.010(h) is amended to read: 30 (h) All motor fuel tax receipts shall be paid into the general fund and 31 distributed to the proper accounts in the general fund and, for receipts under (f), (g),
01 and (j) of this section, into the proper accounts in the transportation maintenance 02 fund (AS 43.40.045). Valid motor fuel tax refund claims shall be paid from the 03 highway fuel tax account in the transportation maintenance [GENERAL] fund. 04 * Sec. 11. AS 43.40.010(j) is amended to read: 05 (j) The proceeds from the tax on motor fuel used in snow vehicles and, unless 06 a tax refund is applied for under AS 43.40.050(a), other internal combustion engines 07 not used in or in conjunction with a motor vehicle licensed to be operated on public 08 ways shall be deposited in a special nonpublic highway use account in the 09 transportation maintenance [GENERAL] fund (AS 43.40.045). Except as 10 otherwise provided in this subsection, each fiscal year, the [THE] legislature may 11 appropriate the balance of the [FROM THIS] account to the Department of 12 Transportation and Public Facilities for trail staking and shelter construction and 13 maintenance. Money remaining in the special nonpublic highway use account at 14 the end of a fiscal year does not lapse and remains available for appropriation 15 under this subsection. 16 * Sec. 12. AS 43.40.030(a) is amended to read: 17 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 18 operate 19 (1) an internal combustion engine is entitled to a motor fuel tax refund 20 of 12 [SIX] cents a gallon if 21 (A) [(1)] the tax on the motor fuel has been paid; 22 (B) [(2)] the motor fuel is not aviation fuel, or motor fuel used 23 in or on watercraft; and 24 (C) [(3)] the internal combustion engine is not used in or in 25 conjunction with a motor vehicle licensed to be operated on public ways; or 26 (2) a watercraft engaged in commercial fishing is entitled to a 27 motor fuel tax refund of three cents a gallon if the tax on the motor fuel has been 28 paid; in this paragraph, "commercial fishing" means the taking of, fishing for, or 29 possession of fish, shellfish, or other fishery resources with the intent of disposing 30 of them for profit or by sale. 31 * Sec. 13. AS 43.40.030(a), as amended by sec. 12 of this Act, is amended to read:
01 (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to 02 operate 03 (1) an internal combustion engine is entitled to a motor fuel tax refund 04 of 18 [12] cents a gallon if 05 (A) the tax on the motor fuel has been paid; 06 (B) the motor fuel is not aviation fuel, or motor fuel used in or 07 on watercraft; and 08 (C) the internal combustion engine is not used in or in 09 conjunction with a motor vehicle licensed to be operated on public ways; or 10 (2) a watercraft engaged in commercial fishing is entitled to a motor 11 fuel tax refund of three cents a gallon if the tax on the motor fuel has been paid; in this 12 paragraph, "commercial fishing" means the taking of, fishing for, or possession of 13 fish, shellfish, or other fishery resources with the intent of disposing of them for profit 14 or by sale. 15 * Sec. 14. AS 43.40 is amended by adding a new section to read: 16 Sec. 43.40.045. Transportation maintenance fund. (a) The transportation 17 maintenance fund is established in the general fund. The fund consists of money 18 appropriated to the fund and the accounts set out in (b) of this section. The legislature 19 may appropriate from the fund for purposes consistent with this chapter. 20 (b) The transportation maintenance fund includes the 21 (1) special highway fuel tax account (AS 43.40.010(g)); 22 (2) special nonpublic highway use account (AS 43.40.010(j)); 23 (3) special watercraft fuel tax account (AS 43.40.010(f)). 24 (c) The department may adopt regulations necessary to implement the 25 transportation maintenance fund in a manner consistent with state and federal law. 26 (d) Nothing in this section creates a dedicated fund. 27 * Sec. 15. AS 43.40.070(a) is amended to read: 28 (a) Upon approval of a refund claim of the motor fuel tax by the department, a 29 disbursement shall be made from the special highway fuel tax account in the 30 transportation maintenance [GENERAL] fund (AS 43.40.045) in favor of the 31 applicant in the amount of the claim.
01 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. (a) AS 43.40.010(a), as amended by sec. 3 of this Act, applies to 04 motor fuel sold or transferred in the state on or after the effective date of sec. 3 of this Act. 05 AS 43.40.010(a), as amended by sec. 4 of this Act, applies to motor fuel sold or transferred in 06 the state on or after the effective date of sec. 4 of this Act. 07 (b) AS 43.40.010(b), as amended by sec. 5 of this Act, applies to motor fuel 08 consumed by a user on or after the effective date of sec. 5 of this Act. AS 43.40.010(b), as 09 amended by sec. 6 of this Act, applies to motor fuel consumed by a user on or after the 10 effective date of sec. 6 of this Act. 11 (c) AS 43.40.030(a), as amended by sec. 12 of this Act, applies to a motor fuel tax 12 refund on motor fuel used on or after the effective date of sec. 12 of this Act. 13 AS 43.40.030(a), as amended by sec. 13 of this Act, applies to a motor fuel tax refund on 14 motor fuel used on or after the effective date of sec. 13 of this Act. 15 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations 18 necessary to implement the changes made by this Act. The regulations take effect under 19 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 20 implemented by the regulation. 21 * Sec. 18. Section 17 of this Act takes effect immediately under AS 01.10.070(c). 22 * Sec. 19. Sections 4, 6, and 13 of this Act take effect July 1, 2019. 23 * Sec. 20. Except as provided in secs. 18 and 19 of this Act, this Act takes effect July 1, 24 2017.