HB 4003 Summary

• Increases the base motor fuel tax from 8 cents to 16 cents per gallon, with tiered rates based on Alaska North Slope crude oil prices (12 cents when oil is $100-$120 per barrel; 8 cents when oil exceeds $120 per barrel).

• Adjusts tax rates for specific fuel types: aviation gasoline remains at 7 cents per gallon; watercraft fuel increases from 5 to 10 cents per gallon; aviation fuel other than gasoline increases to 3.2 cents (at Alaska international airports) or 6.5 cents per gallon (outside those airports).

• Increases the motor fuel tax refund for non-highway internal combustion engines from 6 cents to 12 cents per gallon.

• Applies the changes to motor fuel sold or transferred in the state on or after July 1, 2016, with rates determined based on Alaska North Slope crude oil prices from the preceding calendar quarter.

• Authorizes the Department of Revenue to adopt regulations necessary to implement the changes under the Administrative Procedure Act.