04/08/1994 05:30 PM House FIN

                                                                               
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  HB 453    An Act amending  the motor fuel tax to establish a                 
            different tax levy  on residual  fuel oil used  in                 
            and on watercraft; and  providing for an effective                 
            date.                                                              
                                                                               
            CS HB 453 (FIN) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by the  Department of  Revenue and  a zero  fiscal                 
            note  by  the  Department  of  Transportation  and                 
            Public Facilities.                                                 
  HOUSE BILL 453                                                               
                                                                               
       "An  Act amending  the motor  fuel tax  to  establish a                 
       different tax levy on residual fuel  oil used in and on                 
       watercraft; and providing for an effective date."                       
                                                                               
  REPRESENTATIVE GARY DAVIS  stated that HB 453  would attempt                 
  to create an  equal playing field between  Alaska's residual                 
  fuel oil industry and their counterparts in the Lower 48 and                 
  Canada.  He added that residual fuel oil is the residue from                 
  crude oil after the light oils, gasoline, naphtha, kerosine,                 
  and mid-distillates are  extracted in the refining  process.                 
  The only  applications for residual  fuel oil in  Alaska are                 
  asphalt, cruise ship fuel and reinjection into the pipeline.                 
                                                                               
                                                                               
  Representative   Parnell   MOVED  work   draft  #8-LS1357\X,                 
  Chenoweth, 3/28/94,  as the  version  before the  Committee.                 
  There being NO OBJECTION, the work draft was adopted.                        
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 453  (FIN) out  of                 
  Committee   with   individual   recommendations   and   with                 
  accompanying fiscal notes.                                                   
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  CS HB  453 (FIN) was  reported out of  Committee with a  "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department  of  Revenue  and  a  zero  fiscal  note  by  the                 
  Department of Transportation and Public Facilities.