CSHB 249(TRA) - Motor Fuel Tax

• Establishes a tiered motor fuel tax system based on Alaska North Slope crude oil prices, with 8 cents per gallon when oil exceeds $85/barrel and 16 cents per gallon when at or below $85/barrel.

• Creates differentiated tax rates for aviation fuel, watercraft fuel, and alcohol-blended fuel, with reduced rates for commercial fishing vessels (5 cents per gallon) compared to other watercraft (10 cents per gallon).

• Changes terminology from "accounts" to "funds" for aviation fuel tax fund, watercraft fuel tax fund, and highway fuel tax fund to clarify deposit and appropriation of motor fuel tax revenues.

• Adds 14 exemptions to motor fuel taxation including fuel for foreign use, charitable institutions, emergency services, student transportation, and residual fuel oil used in watercraft.

• Effective dates: July 1, 2016 for most provisions; sections affecting tax rates and refunds take effect July 1, 2018; regulatory implementation section takes effect immediately.