Section 43.40.010. Tax on transfers or consumption of motor fuel and expenditure of proceeds.

   (a) In addition to the surcharge levied under AS 43.40.005, there is levied a tax of eight cents a gallon on all motor fuel sold or otherwise transferred within the state, except that
        (1) the tax on aviation gasoline is four and seven-tenths cents a gallon;
        (2) the tax on motor fuel used in and on watercraft of all descriptions is five cents a gallon;
        (3) the tax on all aviation fuel other than gasoline is three and two-tenths cents a gallon; and
        (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 (1) - (3) of this subsection.
   (b) In addition to the surcharge levied under AS 43.40.005, there is levied a tax of eight cents a gallon on all motor fuel consumed by a user, except that
        (1) the tax on aviation gasoline consumed is four and seven-tenths cents a gallon;
        (2) the tax on motor fuel used in and on watercraft of all descriptions is five cents a gallon;
        (3) the tax on all aviation fuel other than gasoline is three and two-tenths cents a gallon; and
        (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 (1) - (3) of this subsection.
   (c)   [Repealed, Sec. 24 ch 37 SLA 2015].
   (d)   [Repealed, Sec. 3 ch 166 SLA 1976].
   (e) Sixty percent of the proceeds of the revenue from the motor fuel taxes on aviation fuel, excluding the amount determined to have been spent by the state in its collection, shall be refunded to a municipality owning and operating or leasing and operating an airport in the proportion that the revenue was collected at the municipal airport. All other proceeds of the motor fuel taxes on aviation fuel shall be paid into a special aviation fuel tax account in the state general fund. The legislature may appropriate funds from this account for capital or operating costs of airports.
   (f) The proceeds from the revenue from the tax on motor fuel used in boats and watercraft of all descriptions shall be deposited in a special watercraft fuel tax account in the general fund. The legislature may appropriate from this account for water and harbor facilities.
   (g) The proceeds of the revenue from the tax on all motor fuels, except as provided in (e), (f) and (j) of this section, shall be deposited in a special highway fuel tax account in the state general fund. The legislature may appropriate funds from it for expenditure by the Department of Transportation and Public Facilities directly or as matched with available federal-aid highway money for maintenance of highways, construction of highway projects and ferries included in the program provided for in AS 19.10.150, including approaches, appurtenances and related facilities and acquisition of rights-of-way or easements, and other highway costs including surveys, administration, and related matters.  All departments of the state government authorized to spend funds collected from taxes imposed by this chapter shall perform, when feasible, all construction or reconstruction projects by contract after the projects have been advertised for competitive bids, except that, when feasible, arrangements shall be made with political subdivisions to carry out the construction or reconstruction projects.  If it is not feasible for the work to be performed by state engineering forces, the commissioner of transportation and public facilities may contract on a professional basis with private engineering firms for road design, bridge design, and services in connection with surveys.  If more than one private engineering firm is available for the work the contracts shall be entered into on a negotiated basis.
   (h) All motor fuel tax receipts shall be paid into the general fund and distributed to the proper accounts in the general fund.  Valid motor fuel tax refund claims shall be paid from the highway fuel tax account in the general fund.
   (i)   [Repealed, Sec. 35 ch 126 SLA 1994]. 
   (j) The proceeds from the tax on motor fuel used in snow vehicles and, unless a tax refund is applied for under AS 43.40.050(a), other internal combustion engines not used in or in conjunction with a motor vehicle licensed to be operated on public ways shall be deposited in a special nonpublic highway use account in the general fund.  The legislature may appropriate from this account to the Department of Transportation and Public Facilities for trail staking and shelter construction and maintenance.
   (k) The tax on the transfer or consumption of motor fuel provided for in this section does not apply to liquified petroleum gas.
   (l)   [Repealed, Sec. 3 ch 182 SLA 1990]. 

Authorities

29.60.800;43.40.030;43.40.035;44.62.175

Notes

Recent Bills that will modify this

HB 158 REFINED FUEL SURCHARGE;MOTOR FUEL TAX
HB 249 ELECTRONIC TAX RETURNS & MOTOR FUEL TAX
HB4001 OMNIBUS TAXES & CREDITS; MINING LICENSES
HB4003 MOTOR FUEL TAX
HB5002 OMNIBUS TAXES & CREDITS; MINING LICENSES
SB 86 REFINED FUEL SURCHARGE; MOTOR FUEL TAX
SB 132 ELECTRONIC TAX RETURNS & MOTOR FUEL TAX
SB4001 OMNIBUS TAXES & CREDITS; MINING LICENSES
SB5002 OMNIBUS TAXES & CREDITS; MINING LICENSES

Implemented As

15 AAC 40.300
15 AAC 40.310
15 AAC 40.320
15 AAC 40.340
15 AAC 40.400
15 AAC 40.900

References

15 AAC 40.300
15 AAC 40.340
15 AAC 40.400
15 AAC 40.510
15 AAC 40.900
2 AAC 45.010
AS 29.60.800 Harbor facility grant fund.
AS 43.40.030 Refund of the motor fuel tax for nonhighway use.
AS 43.40.035 Other refunds and credits.
AS 44.62.175 Alaska Online Public Notice System.

History

(Sec. 48-5-2 ACLA 1949; am Sec. 1 ch 80 SLA 1951; am Sec. 1 ch 47 SLA 1955; am Sec. 1, 2 ch 27 SLA 1957; am Sec. 1 ch 134 SLA 1957; am Sec. 1 art VI title II ch 152 SLA 1957; am Sec. 2 art V title III ch 152 SLA 1957; am Sec. 2 ch 124 SLA 1959; am Sec. 1, 2 ch 20 SLA 1960; am Sec. 1 ch 150 SLA 1960; am Sec. 1 ch 110 SLA 1961; am Sec. 1 ch 136 SLA 1961; am Sec. 1 - 3 ch 131 SLA 1962; am Sec. 1 ch 130 SLA 1968; am Sec. 10 ch 143 SLA 1968; am Sec. 1, 2 ch 216 SLA 1968; am Sec. 1 - 3 ch 158 SLA 1970; am Sec. 3 ch 58 SLA 1971; am Sec. 1, 2 ch 124 SLA 1971; am Sec. 2, 3 ch 125 SLA 1971; am Sec. 1 - 3 ch 153 SLA 1972; am Sec. 3 ch 166 SLA 1976; am Sec. 1, 2 ch 116 SLA 1977; am Sec. 4 ch 82 SLA 1982; am Sec. 1, 2 ch 87 SLA 1983; am Sec. 3 ch 182 SLA 1990; am Sec. 35 ch 126 SLA 1994; am Sec. 2, 4 ch 127 SLA 1994; am Sec. 2, 4 ch 88 SLA 1997; am Sec. 3 - 5, 24 ch 37 SLA 2015)