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REPRESENTATIVE ANDREW JOSEPHSON

(907) 465-4939 | State Capitol Building, Room 502 | WEBSITE
  PDF IconStatement PDF  | Sponsor's BILL Listing

Sponsor    Statement

House Bill 104: Motor Fuels Tax

Alaska has levied an excise tax on motor fuel sold, transferred, or used within the state since 1945. The Department of Revenue primarily collects this tax from wholesalers and distributors that posses a qualified dealer license issued by the department. AS 43.40.010 sets the base tax rate per gallon for four separate motor fuel types: highway (8 cents), marine (5 cents), aviation, (4.7 cents) and jet (3.2 cents).

Alaska last updated its motor fuel tax rates in May of 1970, and we have now had the lowest motor fuel tax rate in the US for many years. HB 104 proposes an increase to the tax rates on highway and marine motor fuels to 16 cents and 10 cents per gallon, respectively. With this increase, Alaska would continue to have the lowest marine fuel tax rate in the nation while our ranking for highway fuel tax would move from last to 43rd. When enacted in 1970, Alaska’s motor fuel tax of 8 cents per gallon was typical, in comparison to other states. In the subsequent half century, every other state has increased its fuel tax rates while Alaska has remained frozen in time. In 1970, the average gallon of gasoline in the US cost $0.36. After adjusting for inflation, an 8 cent fuel tax in 1970 would equate to 54 cents today. In other words, Alaska’s fuel tax has lost 85% of its purchasing power since it last changed.

Enacted in 2015, AS 43.40.005 currently levies a surcharge of 0.95 cents per gallon on refined fuels, with the revenue raised designated for use by the Department of Environmental Conservation’s Spill Prevention and Response. To fund SPAR adequately, HB104 raises this surcharge to 1.5 cents per gallon.

HB104 does not propose a rate increase for aviation or jet fuels. When compared to other states, Alaska’s tax rates for these fuel types are more competitive, ranking 41st for aviation fuel and 40th for jet fuel.

HB104 includes an additional biennial registration fee of $100 for electric vehicles and $50 for hybrids. This fee is designed to provide equity and capture some revenue from electric vehicles which use our roads but do not otherwise contribute to highway maintenance through the motor fuel tax. The revenue generated from this fee will be deposited into the highway maintenance account.

I urge your support of this long-overdue update to Alaska’s fuel tax rates.


 

[signed]
REPRESENTATIVE ANDREW JOSEPHSON

SPONSOR STATEMENTS from Alaska House Majority Coalition

An Act relating to the Funter Bay marine park unit of the state park system; relating to protection of the social and historical significance of the Unangax cemetery located in Funter Bay and providing for the amendment of the management plan for the Funter Bay marine park unit; and providing for an effective date.

From the office of Representative Hannan


House Bill 104: Motor Fuels Tax

From the office of Representative Josephson


HB 110 – Electronic Smoking Products Excise Tax

From the office of Representative Hannan


House Bill 115 – Renewal or extension of aquatic farming and aquatic plant and shellfish hatchery site leases and requiring a report to the legislature.

From the office of Representative Story


House Bill 123 – An Act Providing for State Recognition of Federally Recognized Tribes

From the office of Representative Zulkosky


Sectional Analysis HB 128 Version A

From the office of Representative Fields


House Bill 155 – Court System Provide Visitors & Experts

From the office of Representative Tuck


House Bill 162 – Fisheries Rehabilitation Permits

From the office of Representative Tuck


An Act relating to shared ownership; and relating to the sharing and sale of raw milk and raw milk products.

From the office of Representative Tarr


An Act relating to public school funding for social and emotional learning; and providing for an effective date

From the office of Representative Hopkins


Sponsor Statement HB 26 version A

From the office of Representative Tarr


Sponsor Statement HB 27 v. A
An Act naming the irene Webber Bridge.

From the office of Representative Stutes


Sponsor Statement for House Bill 30

From the office of Representative Josephson


Observe Daylight Saving Time All Year

From the office of Representative Stutes


Shellfish Enhancement Projects; Hatcheries; Fees

From the office of Representative Ortiz


Special Education Service Agency – Sunset Extension

From the office of Representative Story


Sponsor Statement for House Bill 45

From the office of Representative Josephson


House Bill 47– Renaming the Alaska Native Language Preservation and Advisory Council as the Council for Alaska Native Languages; and relating to the Council for Alaska Native Languages

From the office of Representative Story


An Act relating to sexual abuse of a minor; relating to sexual assault; relating to the code of military justice; relating to consent; relating to the testing of sexual assault examination kits; and providing for an effective date.

From the office of Representative Tarr


An Act establishing the Alaska Invasive Species Council in the Department of Fish and Game; relating to management of invasive species; relating to invasive species management decals; and providing for an effective date.

From the office of Representative Tarr


Sponsor Statement for House Bill 55

From the office of Representative Josephson


Sponsor Statement for House Bill 57

From the office of Representative Josephson


Sponsor Statement House Bill 63

From the office of Representative Stutes


An Act relating to regional fisheries development associations; and related to developing fishery management assessments

From the office of Representative Stutes


Elections, Voting, Ballots

From the office of Representative Tuck


Prohibition of Conversion Therapy on Youth and Vulnerable Adults

From the office of Representative Hannan


HB 9—The Education Funding Act

From the office of Representative Hannan


House Bill 90 Sponsor Statement Version A Rental vehicles; Vehicle rental networks; Vehicle rental taxes

From the office of Representative Wool


An Act relating to the State Physical Therapy and Occupational Therapy Board; relating to the practice of physical therapy; and relating to the practice of occupational therapy.

From the office of Representative Claman