The Alaska House of Representatives passed, by wide margin, a bill to suspend the tax on motor fuel. Beginning the first day of the month following the effective date and ending on June 30, 2023, the Department of Revenue or a dealer that sells or otherwise transfers fuel in the state may not collect the taxes suspended. During the suspension, a dealer or user of refined fuel shall reduce the cost of fuel to the final consumer by an amount equal to the amount of the tax suspended. According to the Alaska Department of Revenue, there is an $.08 cent per gallon tax for diesel and gasoline highway use.
Rep. Kelly Merrick (Eagle River) said:
“I would just like to remind the body that yesterday we passed amendment number 1, which suspends the motor fuel tax, that means that Alaskans will pay 8 cents less per gallon on a tank of gas. That’s important during these times of financial hardship for Alaskans. I think that this decrease for a short time will help Alaskans and I think it’s very important to note that this is a tax holiday, and it is not a tax increase.”
Gov. Mike Dunleavy, in responding to the soaring fuel prices in March sought to give Alaskans a break at the pump by suspending the state motor fuel taxes until next June by asking the House of Representatives to consider his amendment to House Bill 104.
In a letter to the House of Representatives, Dunleavy said:
“With rising inflation eroding the financial bedrock of Alaskan homes and businesses, something must be done to alleviate the economic hardship facing our State. The misery wrought from these worldwide events are, indirectly, propelling the revenues to Alaska’s state government.”
Gov. Dunleavy adds that the action, if approved by the Legislature, would bring direct tax relief at the gas pump for Alaskan families and businesses and help contain the costs of goods shipped within the state.
The legislation passed on a 36-2 vote and moves to the Senate for consideration.
Transcribed audio courtesy of KTOO 360TV.