CSSB 132 Summary

• Restructures Alaska motor fuel tax rates based on Alaska North Slope crude oil price thresholds: 8 cents per gallon when oil exceeds $85 per barrel, or 16 cents per gallon when oil is $85 or below.

• Establishes reduced tax rates for specific fuel types including aviation gasoline (4.7-10 cents), watercraft fuel (5-10 cents), and aviation fuel other than gasoline (3.2-10 cents).

• Adds new subsection listing 14 categories of motor fuel exempt from taxation, including fuel for foreign flights, public utility power plants, charitable institutions, and emergency vehicles.

• Modifies motor fuel tax refund to a flat 6 cents per gallon regardless of which tax rate tier was paid, applicable to off-road internal combustion engine use.

• Makes most provisions effective July 1, 2016, with sections on tax refunds effective July 1, 2018; authorizes Department of Revenue to adopt implementing regulations.