AK HB340

Authorizes boroughs to levy and collect a sales or use tax on gasoline or diesel fuel used in motor vehicles at a maximum rate of 8 cents per gallon, applicable to both home rule and general law municipalities.

Authorizes cities to levy and collect a sales or use tax on gasoline or diesel fuel used in motor vehicles at a maximum rate of 8 cents per gallon, applicable to both home rule and general law cities.

Motor fuel tax rates are independent from and do not affect sales or use tax rates levied on other sources.

Amends AS 29.10.200(51) and (52) and AS 29.45.650(a) and (700)(a) to reference the new motor fuel tax provisions in statutes.

Takes effect January 1, 2011.