2016-05-27                     House Journal                      Page 2986
HB 4003                                                                                                                       
HOUSE BILL NO. 4003 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the motor fuel tax; and providing for an                                                               
     effective date."                                                                                                           
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the motor fuel tax.                                                          

2016-05-27                     House Journal                      Page 2987
The bill would increase the currently outdated tax rates on motor fuels                                                         
with increases on motor fuel, aviation gasoline, motor fuel used in and                                                         
on watercraft, and aviation fuel other than gasoline. The tax on a                                                              
gallon of motor fuel used or transferred within the state would be                                                              
raised from eight cents a gallon to 16 cents a gallon. Likewise, the tax                                                        
on aviation gasoline would be raised to seven cents a gallon (the                                                               
current rate is four and seven-tenths), the tax on marine fuel would be                                                         
raised to 10 cents a gallon (the current rate is five cents), and the tax                                                       
on aviation fuel other than gasoline would be six and one-half cents a                                                          
gallon (the current rate is three and two-tenths). The bill would also                                                          
double the credit for highway fuel used to operate an internal                                                                  
combustion engine off-road, from six cents a gallon to 12 cents a                                                               
gallon.                                                                                                                         
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"