Legislature(2015 - 2016)

2016-01-19 Senate Journal

Full Journal pdf

2016-01-19                     Senate Journal                      Page 1597
SB 132                                                                                                                        
SENATE BILL NO. 132 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
     "An Act requiring the electronic submission of a tax return                                                                
     or report with the Department of Revenue; relating to the                                                                  
     motor fuel tax; and providing for an effective date."                                                                      
was read the first time and referred to the Transportation and Finance                                                          
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
Governor's transmittal letter dated January 15:                                                                                 
Dear President Meyer:                                                                                                           
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the taxation of motor                                                        
The bill would raise the tax rates on the four categories of motor fuel                                                         
currently taxed under AS 43.40.010 (motor fuel tax), but would not                                                              
amend the refined fuel surcharge levied under AS 43.40.005 and                                                                  
passed last session. Instead, the bill would increase the currently                                                             
outdated tax rates on all motor fuels including all motor fuel sold or                                                          
transferred within the state, aviation gasoline, and motor fuel used on                                                         
watercraft. The bill increases highway fuel from $0.08 to $0.16 per                                                             
gallon; aviation fuel from $0.047 to $0.10 per gallon; marine fuel from                                                         
$0.05 to $0.10 per gallon; jet fuel from $0.032 to $0.10 per gallon;                                                            
gasohol from $0.08 to $0.16 per gallon; and also increases the credit                                                           
for off road use from $0.06 to $0.12 per gallon. The bill would                                                                 
generate approximately $49,000,000 annually in increased revenue.                                                               
While this may at first appear to represent a significant increase, the                                                         
tax rates on motor fuel sold or transferred within the state have not                                                           
been raised in many years; for example, the tax on highway fuel has                                                             
remained at eight cents a gallon since 1970. This bill would bring                                                              
Alaska's tax rate on highway fuel closer to the current national                                                                
average of 25 cents a gallon.                                                                                                   

2016-01-19                     Senate Journal                      Page 1598
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
I urge your prompt and favorable action on this measure.                                                                        
Bill Walker