Legislature(2017 - 2018)BARNES 124
02/23/2017 01:30 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB131 | |
| HB60 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 60 | TELECONFERENCED | |
| *+ | HB 132 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 131 | TELECONFERENCED | |
HB 60-MOTOR FUEL TAX;TRANSPORTATION MAINT. FUND
1:42:11 PM
CO-CHAIR WOOL announced that the next order of business would be
HOUSE BILL NO. 60, "An Act relating to the motor fuel tax;
relating to the disposition of revenue from the motor fuel tax;
relating to a transportation maintenance fund; and providing for
an effective date." [Before the committee, adopted as a work
draft on 2/20/17, was the proposed committee substitute (CS) for
HB 60, Version 30-GH1794, Nauman, 2/20/17.]
1:42:33 PM
CO-CHAIR STUTES moved that the committee adopt Amendment 1 to
Version D, labeled 30-GH1794\D.2, Nauman, 2/21/17, which read:
Page 6, line 26:
Delete "commercial watercraft"
Insert "watercraft engaged in commercial fishing"
Page 6, line 27, following "paid":
Insert "; in this paragraph, "commercial fishing"
means the taking of, fishing for, or possession of
fish, shellfish, or other fishery resources with the
intent of disposing of them for profit or by sale"
Page 7, line 7:
Delete "commercial watercraft"
Insert "watercraft engaged in commercial fishing"
Page 7, line 8, following "paid":
Insert "; in this paragraph, "commercial fishing"
means the taking of, fishing for, or possession of
fish, shellfish, or other fishery resources with the
intent of disposing of them for profit or by sale"
CO-CHAIR WOOL objected for discussion purposes.
1:42:50 PM
MATT GRUENING, Staff, Representative Stutes, Alaska State
Legislature, stated that Amendment 1 would fix an error from the
previously drafted committee substitute. He noted that
Amendment 1 would allow the three-cent rebate to apply only to
commercial fishing vessels and vessels actively engaged in
commercial fishing activities. He explained that the use of the
term "commercial watercraft" in Version D unfortunately would
include a lot of other types of activity that were not intended
to be eligible for the rebate. He said that Amendment 1 would
not only clarify the definition, but also would put into the
bill a definition of commercial fishing as, "the taking of,
fishing for, or possession of fish, shellfish, or other
fisheries resources with the intent of disposing for them for
profit or by sale".
1:43:43 PM
REPRESENTATIVE NEUMAN moved that the committee adopt a
conceptual amendment to Amendment 1, which read as follows:
For the purposes of this chapter, commercial fishing
vessel means a vessel, homeported or registered in the
state that is engaged in the catching, by any method
or means, of a salt or freshwater fishery resource.
CO-CHAIR WOOL objected for discussion purposes.
REPRESENTATIVE NEUMAN stated that he supports Amendment 1. He
cited that the reason for his conceptual amendment is to ensure
that the reduction in rates is exclusively for Alaska based
vessels and not non-Alaska based vessels. He disclosed that his
conceptual amendment could have some issues with the Interstate
Commerce clause. He noted that he did not want the state to
have to pay a fine of $70 million like it did a couple years ago
in the case of the State v. Olsen (ph). He said that he would
continue to work on the issue.
Representative Neuman withdrew his conceptual amendment.
1:45:02 PM
REPRESENTATIVE SULLIVAN-LEONARD inquired whether the proposed
definition of commercial fishing would pertain to Upper Cook
Inlet fishing businesses such as sport fishing and tourism
groups.
CO-CHAIR WOOL deferred to Co-Chair Stutes.
CO-CHAIR STUTES stated that the proposed Amendment 1 would not
encapsulate the user groups Representative Sullivan-Leonard
mentioned. She explained that the reasoning is because sports
fishermen and tourism groups do not pay the same fees that
commercial fishermen are required to pay. She elaborated that
sport fishermen and tourism groups don't pay a raw fish tax and
the licensing fees are not nearly equivalent to what the
licensing fees are for commercial fishermen.
REPRESENTATIVE SULLIVAN-LEONARD offered her belief that sport
fishermen and tourism groups pay an increased rate for fuel.
CO-CHAIR WOOL shared that he was unsure but offered his belief
that if sport fishermen pay the same price for fuel, then they
would pay the same fuel tax as other user groups.
REPRESENTATIVE SULLIVAN-LEONARD shared her understanding that
sport fishermen and tourism groups would absorb the increase for
their businesses but would not have the same benefits as other
commercial fishing businesses.
CO-CHAIR WOOL offered his belief that the intent is to use the
revenue from taxes for harbors and ports, so sport and
commercial fishermen will probably see some of the same benefits
if their boats are in a harbor or port. He clarified that the
amendment would be just a rebate, "for a certain class of ...
individuals or companies that have fishing ... as their primary
business and also of a certain ... size".
REPRESENTATIVE SULLIVAN-LEONARD stated that her concern is that
one group is seeking a rebate over and above other groups that
also have businesses surrounding fishing, which makes an
inequity.
REPRESENTATIVE NEUMAN, in regard to Co-Chair Stutes' previous
comment about licenses, said that although sport fishermen pay
less for licenses, they do not use nearly the amount of
resources that commercial fishermen do. He noted that fish are
a resource that belongs to all Alaskans. Representative Neuman
added that he would like to see the committee do what it can to
support commercial fishing all around the state. He cited an
economic impact statement from six years ago that showed a $1.25
billion impact to the state through sport fisheries. He added
that just from the Cook Inlet fishery alone over $750 thousand a
year is added to the local economy. He noted the importance of
the fishing industry all around the state, but its particular
importance to Southeast and Southwest Alaska. Representative
Neuman reiterated that sport fishermen still have to carry a
commercial license and their boats can only be used for
commercial fishing.
1:49:01 PM
CO-CHAIR WOOL said, "I agree they're a commercial operation. I
think initially the intent was having to do with an impending
fishing tax which I don't think sport fisherman are paying
fishing tax".
CO-CHAIR STUTES confirmed that is correct. She explained that
there is an anticipated increase for interim use permits by
"lifting the lid off" of the Alaska Commercial Fisheries Entry
Commission (CFEC) permit. She said that neither the CFEC permit
increase nor an impending fisheries tax would affect sport
fishermen. She said that currently commercial fisheries pay an
"off the top, three percent, raw-fish sales tax."
1:50:17 PM
CO-CHAIR WOOL removed his objection to the motion to adopt
Amendment 1.
REPRESENTATIVE SULLIVAN-LEONARD objected.
1:50:43 PM
A roll call vote was taken. Representatives Kopp, Claman,
Neuman, Drummond, Wool, and Stutes voted in favor of Amendment
1. Representative Sullivan-Leonard voted against it.
Therefore, Amendment 1 was adopted by a vote of 6-1.
1:51:22 PM
REPRESENTATIVE KOPP moved that the committee adopt Amendment 2,
labeled 30-GH1794\D.1, Nauman, 2/21/17, which read:
Page 3, line 2:
Delete "24"
Insert "20"
Page 3, line 4:
Delete "14.1"
Insert "11.75"
Page 3, line 6:
Delete "15"
Insert "12.5"
Page 3, line 7:
Delete "9.6"
Insert "eight"
Page 4, line 1:
Delete "24"
Insert "20"
Page 4, line 2:
Delete "14.1"
Insert "11.75"
Page 4, line 4:
Delete "15"
Insert "12.5"
Page 4, line 5:
Delete "9.6"
Insert "eight"
Page 7, line 1:
Delete "18"
Insert "15"
CO-CHAIR STUTES objected for discussion purposes.
REPRESENTATIVE KOPP stated that Amendment 2 is in response to
testimony heard from the trucking and aviation industries. He
said that while the industries overall support a motor fuel tax
increase, they cautioned Alaska against how quickly and
dramatically the increase would be implemented. He said
Amendment 2 would keep the governor's budget intact, as
proposed, because the budget includes the first $40 million
infusion and the amendment speaks only to the portion of the
proposed legislation that would take effect July 1, 2019, on the
second increase. He added that Amendment 2 would limit the
second increase by 50 percent of what was previously proposed.
REPRESENTATIVE KOPP clarified that Amendment 2 would lessen the
tax increases proposed in Section 4 of Version D, as follows:
proposed motor tax from 24 cents to 20 cents; aviation gasoline
from 14.1 cents to 11.75 cents; and motor fuel used in and on
watercraft from 15 cents to 12.5 cents. Representative Kopp
said that the same changes in Section 4 are repeated in Section
6. He said Amendment 2 would also change the rebate from the
currently purposed 12 cents to a rebate of 15 cents.
REPRESENTATIVE KOPP said that although adding legislative intent
language is not as prescriptive as statutory law, he recognized
the difficulty in putting language into statute. He explained
that Amendment 2 would allow for a chance to assess the
successfulness of the fuel tax increase. He offered his belief
that the dollar amount is responsive to industry concerns about
having time to change business models. He added that the time
and amount proposed in Amendment 2 would show whether or not
industry could absorb the cost itself or if the cost would have
to be passed along to consumers. He stated that his main
concern is for the increases to not go "too much, too fast."
Representative Kopp shared that if in two years the department
feels more money is needed in the fund, then it can request the
additional money.
1:54:44 PM
REPRESENTATIVE SULLIVAN-LEONARD shared her appreciation for
Amendment 2. She indicated the maker of the proposal has
considered both constituents and industry. She stated that
Amendment 2 could help to "soften the blow" of absorbing such a
large tax increase.
1:55:14 PM
REPRESENTATIVE CLAMAN [objected to Amendment 2] but expressed
appreciation for the spirit behind it. He said that HB 60 is
slightly different from last year's motor fuel tax increase
bill. He offered his belief that with the state's current
fiscal situation, Alaska really needs the second increase.
Representative Claman stated his belief that Alaska cannot
continue to support its highways during a time of fiscal
deficit. He noted that even after the second increase Alaska's
fuel tax rate would still be one of the lowest in the nation.
He said that he is also cognizant that motor fuel taxes have not
been increased in more than 30 years.
REPRESENTATIVE NEUMAN said that while he appreciates the attempt
to try to reduce the increase, he does not support the increase
at all. He called attention to the over 34,000 Matanuska-
Susitna (Mat-Su) residents that drive 100 miles round trip every
day, into Anchorage to support the state's economy.
Representative Neuman stated that he would not support an
increase unless it was fair and balanced. He elaborated that it
is not fair to expect the Mat-Su commuters to pay hundreds of
extra dollars a month.
CO-CHAIR WOOL said that Representative Claman raised a good
point that Alaska has not raised motor fuel taxes since the
'70s. He stated his belief that it would not be so simple to
come back asking to increase the motor fuel tax again if the
proposed increases are not enough. He said that while he
supports taking a year between increases, he also recognizes
that the state needs revenue. He said that means if $20 million
is taken out of the proposed increase $20 million will have to
be moved from somewhere else to make up for it.
1:58:45 PM
CO-CHAIR STUTES said that she likes the idea behind Amendment 2,
but she also recognizes the state is facing a huge financial
void. She credited Representative Kopp for the idea of skipping
a year on increasing the motor fuel tax she included in the
adopted Amendment 1.
1:59:56 PM
REPRESENTATIVE DRUMMOND shared that she grew up in New York City
(NYC) where there are high sales and income taxes. She added
that the population in NYC continues to grow, which shows that
people are perfectly willing to pay for the privilege of living
in a place like NYC that is supported by high taxes, fees, and
tolls. She requested clarification of the numbers in relation
to the proposed increases. Representative Drummond questioned
Representative Neuman's previous comment that Mat-Su commuters
would pay hundreds of dollars in extra fuel taxes. She said
that when she did the math, she figured 25,000 miles annually
driven, 100 miles a day, and an average of 25 miles to the
gallon for a total of $160 additional a year that would be paid
in the first iteration of fuel tax increases. She said that she
recognizes the high cost to commute but that is just a part of
life. She suggested that now might be a good time to get a
commuter rail system started from Mat-Su to Anchorage.
2:02:19 PM
CO-CHAIR WOOL pointed out to Representative Drummond that there
is a handout, included in the committee packet, giving the exact
numbers of 25,000 miles per year and 25 miles per gallon. He
added that after the second increase the taxes would be an
additional $240, which equates to about $5 a week.
REPRESENTATIVE DRUMMOND suggested that drivers start making
their own lattes to make up for the extra amount that would be
paid in motor fuel taxes.
REPRESENTATIVE KOPP said that he appreciated the comments about
getting the railroad going. He explained that Amendment 2 would
still permit a $60 million infusion into Alaska's economy, $40
million now then another $20 million in two years. He shared
his hope that Alaska's revenue situation would be a little
better than "as bleak as ... we think it could be." He noted
that Amendment 2 was not intended to be an argument against
Alaska's tax rate tier ranking among states, but asked members
to reflect that industry does model its plan on the state rates
and when the rate changes rapidly it causes industry to have to
readjust.
CO-CHAIR STUTES removed her objection to the motion to adopt
Amendment 2.
REPRESENTATIVE CLAMAN maintained his objection.
2:04:44 PM
A roll call vote was taken. Representative Kopp voted in favor
of Amendment 2. Representatives Drummond, Claman, Sullivan-
Leonard, Neuman, Stutes, and Wool voted against it. Therefore,
Amendment 2 failed to be adopted by a vote of 1-6.
2:05:50 PM
REPRESENTATIVE NEUMAN moved that the committee adopt Amendment
3, labeled 30-GH1794\D.3, Nauman, 2/23/17. [Amendment 3 is
provided at the end of the minutes on HB 60.]
CO-CHAIR WOOL objected for discussion purposes.
REPRESENTATIVE NEUMAN said that he is aware Amendment 3 looks
long, but it is mostly just legal jargon discussing each tax.
He explained that Amendment 3 would suspend the motor fuel tax
if the average price per barrel for North Slope crude oil, in
the previous calendar year, went above $85.
CO-CHAIR STUTES said that although she appreciates the intent,
she would like to see the state on a sustainable pathway that is
not dependent on fluctuating oil prices but based on what the
state can afford. She added her belief that if oil prices go
up, then the state could have "a pretty fat savings account"
once again and continue on with necessary capital improvements.
2:07:32 PM
REPRESENTATIVE SULLIVAN-LEONARD stated that she finds Amendment
3 to be very reasonable. She shared that she does not think the
state wants to tax its residents to a point that it is onerous.
She opined that providing some relief to commuters would be the
responsible thing to do. She said that she supports Amendment 3.
REPRESENTATIVE NEUMAN shared his belief that when the price of
oil is close to $100 per barrel the state would again have a
balanced budget. He said that Alaska is facing its current
budget dilemma because the price of oil per barrel dropped down
below $30. He stated that the legislature had a balanced budget
when oil was $96 dollars a barrel. He said that the legislature
has made some very significant reductions over the past few
years. Representative Neuman conveyed that last year when the
budget was passed the state was at the same per capita spending,
based on inflation, as was being spent in 1977. Representative
Neuman shared that because of all the other taxes and bills
currently facing the legislature, he expected the budget to
continue being reduced. He noted the importance in making sure
Alaska has a long-term, sustainable budget. He shared his
thoughts that relaxing some of the taxes received though
royalties and corporation taxes would send a signal to industry
that Alaska wants to create an environment conducive to attract
industry's investment of its capital dollars. Representative
Neuman opined that taking money out of the economy, through
taxation, at the start of a recession is the wrong decision. He
said that he offered Amendment 3 to show a willingness to place
a cap for when oil reaches $85 a barrel again. He added that
under Amendment 3, the marine highway system would get a fuel
trigger cap allowing additional money to go to the ferries.
Representative Neuman shared his belief that Amendment 3 would
show that this legislature has an interest in showing fiscal
restraint.
2:12:25 PM
CO-CHAIR WOOL maintained his objection to the motion to adopt
Amendment 3.
2:12:33 PM
A roll call vote was taken. Representatives Sullivan-Leonard,
Neuman, and Kopp voted in favor of Amendment 3. Representatives
Drummond, Claman, Wool, and Stutes voted against it. Therefore,
Amendment 3 failed to be adopted by a vote of 3-4.
REPRESENTATIVE SULLIVAN-LEONARD declared that she is still not
comfortable with HB 60 as it is written and amended. She shared
her thought that many parts of the bill pit one part of Alaska
over another, particularly her district. She noted that those
who don't commute every day would not feel the sting as badly as
her constituents. Representative Sullivan-Leonard said that
while other areas would receive certain exemptions, her area
would be paying the full share. She maintained her opposition
to HB 60.
2:14:19 PM
REPRESENTATIVE NEUMAN stated that he does not support HB 60. He
expressed his concerns that the proposed legislation is neither
balanced nor fair and that he does not think it wise to increase
taxes just as the state is going into a recession. He mentioned
that there was an amendment offered that tried to make
adjustments and recognize that commercial sport fishermen still
have to abide by commercial standards. Representative Neuman
reiterated his belief that both commercial and sport fishermen
are professional commercial operators. He declared that he is
not concerned with the "fish wars" in the state. He noted that
he absolutely supports Alaska's commercial fishing industry and
that he supported the reduction for them. He stressed that
sport commercial fishermen are not subsistence fishing to
support their families; it is strictly business. Representative
Neuman shared his belief that it is good that landing fees go
back into the commercial fishing industry for things like
advertising through the Alaska Seafood Marketing Institute
(ASMI).
REPRESENTATIVE NEUMAN reiterated that the state needs to find a
more balanced and equitable proposal. He shared that when
looking at the whole situation Alaska is facing, he finds it
very difficult to imagine the state is going to continue to make
reductions in the budget while pulling additional money out of
the public's hands, at the start of a recession, to give to
state government to fund the budget.
CO-CHAIR STUTES clarified that the fees that go to ASMI are a
total separate tax that has been self-imposed by the salmon
fishermen. She noted that the raw fish tax is 3 percent. She
explained that 1.5 percent of that goes toward local
municipalities for infrastructure and the other 1.5 percent goes
to the state.
CO-CHAIR WOOL said that the bottom line is that people drive,
people use fuel, and people use infrastructure. He stated that
those all come at a cost to the state, whether through use of
infrastructure or resources used. He explained that even if all
the money from fuel taxes went to the Department of
Transportation & Public Facilities (DOT&PF), it still wouldn't
be enough; more general fund (GF) dollars are needed in DOT&PF's
budget. In regard to Representative Sullivan-Leonard's comments
about Mat-Su commuter residents, Co-Chair Wool said that there
are other places in Alaska where people drive and "wear and tear
up" the roads. He shared his belief that although increased
motor fuel taxes might encourage more fuel-efficient vehicles on
the roads, the roads won't know that and will still get worn.
He pointed out that better fuel efficiency would mean less gas
being purchased, so the state needs more revenue. Co-Chair Wool
stated that Alaska is in a tough position financially and
although smart cuts can be made the bottom line is that more
revenue flowing into Alaska's account is needed. He noted that
Alaska's motor fuel tax hasn't been raised in many decades and
even after both increases would still remain one of the lowest
in the nation.
2:19:04 PM
CO-CHAIR STUTES moved to report CSHB60, Version 30-GH1794\D,
Nauman, 2/20/17, as amended, out of committee with individual
recommendations and the accompanying fiscal notes.
REPRESENTATIVE SULLIVAN-LEONARD objected.
2:19:40 PM
A roll call vote was taken. Representatives Drummond, Claman,
Kopp, Wool, and Stutes voted in favor of CSHB 60, Version 30-
GH1794\D, Nauman, 2\20\27, as amended. Representatives
Sullivan-Leonard and Neuman voted against it. Therefore, CSHB
60 (TRA) was reported out of the House Transportation Standing
Committee by a vote of 5-2.
AMENDMENTS
The following amendment to HB 60.....
Page 2, line 15, through page 4, line 12:
Delete all material and insert:
"* Sec. 3. AS 43.40.010(a) is amended to read:
(a) In addition to the surcharge levied under
AS 43.40.005, if the average price per barrel for
Alaska North Slope crude oil for sale on the United
States West Coast during the previous calendar year is
(1) more than $85, there is levied a tax of eight
cents a gallon on all motor fuel sold or otherwise
transferred within the state, except that the tax on
(A) [(1) THE TAX ON] aviation gasoline is four and
seven-tenths cents a gallon;
(B) [(2) THE TAX ON] motor fuel used in and on
watercraft of all descriptions is five cents a gallon;
(C) [(3) THE TAX ON] all aviation fuel other than
gasoline is three and two-tenths cents a gallon; and
(D) [(4) THE TAX RATE ON] motor fuel that is blended
with alcohol is the same tax rate a gallon as other
motor fuel; however, in an area and during the months
in which fuel containing alcohol is required to be
sold, transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) [(1) - (3)] of this paragraph;
or
(2) less than or equal to $85, there is levied a tax
of 16 cents a gallon on all motor fuel sold or
otherwise transferred within the state, except that
the tax on
(A) aviation gasoline is 9.4 cents a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is 10 cents a gallon;
(C) all aviation fuel other than gasoline is 6.4
cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph [SUBSECTION].
* Sec. 4. AS 43.40.010(a), as amended by sec. 3 of
this Act, is amended to read:
(a) In addition to the surcharge levied under
AS 43.40.005, if the average price per barrel for
Alaska North Slope crude oil for sale on the United
States West Coast during the previous calendar year is
(1) more than $85, there is levied a tax of eight
cents a gallon on all motor fuel sold or otherwise
transferred within the state, except that the tax on
(A) aviation gasoline is four and seven-tenths cents
a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is five cents a gallon;
(C) all aviation fuel other than gasoline is three
and two-tenths cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph; or
(2) less than or equal to $85, there is levied a tax
of 24 [16] cents a gallon on all motor fuel sold or
otherwise transferred within the state, except that
the tax on
(A) aviation gasoline is 14.1 [9.4] cents a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is 15 [10] cents a gallon;
(C) all aviation fuel other than gasoline is 9.6
[6.4] cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph.
* Sec. 5. AS 43.40.010(b) is amended to read:
(b) In addition to the surcharge levied under
AS 43.40.005, if the average price per barrel for
Alaska North Slope crude oil for sale on the United
States West Coast during the previous calendar year is
(1) more than $85, there is levied a tax of eight
cents a gallon on all motor fuel consumed by a user,
except that the tax on
(A) [(1) THE TAX ON] aviation gasoline consumed is
four and seven-tenths cents a gallon;
(B) [(2) THE TAX ON] motor fuel used in and on
watercraft of all descriptions is five cents a gallon;
(C) [(3) THE TAX ON] all aviation fuel other than
gasoline is three and two-tenths cents a gallon; and
(D) [(4) THE TAX RATE ON] motor fuel that is blended
with alcohol is the same tax rate a gallon as other
motor fuel; however, in an area and during the months
in which fuel containing alcohol is required to be
sold, transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) [(1) - (3)] of this paragraph;
or
(2) less than or equal to $85, there is levied a tax
of 16 cents a gallon on all motor fuel sold or
otherwise transferred within the state, except that
the tax on
(A) aviation gasoline is 9.4 cents a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is 10 cents a gallon;
(C) all aviation fuel other than gasoline is 6.4
cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph [SUBSECTION].
* Sec. 6. AS 43.40.010(b), as amended by sec. 5 of
this Act, is amended to read:
(b) In addition to the surcharge levied under
AS 43.40.005, if the average price per barrel for
Alaska North Slope crude oil for sale on the United
States West Coast during the previous calendar year is
(1) more than $85, there is levied a tax of eight
cents a gallon on all motor fuel consumed by a user,
except that the tax on
(A) aviation gasoline consumed is four and seven-
tenths cents a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is five cents a gallon;
(C) all aviation fuel other than gasoline is three
and two-tenths cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph; or
(2) less than or equal to $85, there is levied a tax
of 24 [16] cents a gallon on all motor fuel sold or
otherwise transferred within the state, except that
the tax on
(A) aviation gasoline is 14.1 [9.4] cents a gallon;
(B) motor fuel used in and on watercraft of all
descriptions is 15 [10] cents a gallon;
(C) all aviation fuel other than gasoline is 9.6
[6.4] cents a gallon; and
(D) motor fuel that is blended with alcohol is the
same tax rate a gallon as other motor fuel; however,
in an area and during the months in which fuel
containing alcohol is required to be sold,
transferred, or used in an effort to attain air
quality standards for carbon monoxide as required by
federal or state law or regulation, the tax rate on
motor fuel that is blended with alcohol is six cents a
gallon less than the tax on other motor fuel not
described in (A) - (C) of this paragraph."
Page 6, lines 20 - 22:
Delete "12 [SIX] cents a gallon if
(A) [(1)] the tax on the motor fuel has been paid;
(B) [(2)]"
Insert "six cents a gallon if the tax was paid under
AS 43.40.010(a)(1) or (b)(1) or 12 cents a gallon if
the tax was paid under AS 43.40.010(a)(2) or (b)(2),
and
(A) [(1) THE TAX ON THE MOTOR FUEL HAS BEEN PAID;
(2)]"
Reletter the following subparagraph accordingly.
Page 7, lines 1 - 2:
Delete "18 [12] cents a gallon if
(A) the tax on the motor fuel has been paid;
(B)"
Insert "six cents a gallon if the tax was paid under
AS 43.40.010(a)(1) or (b)(1) or 18 [12] cents a gallon
if the tax was paid under AS 43.40.010(a)(2) or
(b)(2), and
(A)"
Reletter the following subparagraphs accordingly.
| Document Name | Date/Time | Subjects |
|---|---|---|
| #1 CSHB60 (TRA) Draft Proposed Amendment ver D.2.pdf |
HTRA 2/23/2017 1:30:00 PM |
HB 60 |
| #2 CSHB60 (TRA) Draft Proposed Amendment ver D.1.pdf |
HTRA 2/23/2017 1:30:00 PM |
HB 60 |
| #3 CSHB60 (TRA) Draft Proposed Amendment ver D.3.pdf |
HTRA 2/23/2017 1:30:00 PM |
HB 60 |
| Conceptual Amendment to #1 CSHB60 (TRA) Draft Proposed Amendment.pdf |
HTRA 2/23/2017 1:30:00 PM |
HB 60 |