ELIMINATE TAX DISCOUNTS, the official text

Enrolled SB 164 
 Eliminating deductions for the remittance of the motor fuel tax, tobacco taxes, and tire fees; 
 relating to discounts on cigarette stamps; and providing for an effective date. 
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 * Section 1. AS 43.40.013 is amended to read: 
 Sec. 43.40.013. Collection of the refined fuel surcharge and the motor fuel 
 tax. Every dealer who sells or otherwise transfers refined or motor fuel in the state 
 shall collect the surcharge and tax required in this chapter at the time of sale, and remit 
 the total surcharge and tax collected during each calendar month of each year to the 
 department by the last day of each succeeding month. Every user shall likewise remit 
 the surcharge and tax required in this chapter and accrued on fuel actually used by the 
 user during each month. [IF THE MONTHLY RETURN IS TIMELY FILED, ONE 
 PERCENT OF THE TOTAL MONTHLY SURCHARGE AND TAX DUE, 
 LIMITED TO A MAXIMUM OF $100, MAY BE DEDUCTED AND RETAINED

TO COVER THE EXPENSE OF ACCOUNTING AND FILING THE MONTHLY 
 RETURN.] At the time the remittance is made, each dealer or user shall submit a 
 statement to the department showing all fuel that the dealer or user has distributed or 
 used during the month. 
 * Sec. 2. AS 43.50.330(b) is amended to read: 
 (b) The licensee shall remit with the return the tax due under AS 43.50.300 for 
 the month covered by the return [, AFTER DEDUCTING FOUR-TENTHS OF ONE 
 PERCENT OF THE TAX DUE, WHICH THE LICENSEE SHALL RETAIN TO 
 COVER THE EXPENSE OF ACCOUNTING AND FILING THE RETURN]. 
 * Sec. 3. AS 43.50.540(c) is amended to read: 
 (c) Each [EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, 
 EACH] stamp shall be sold to a licensee at its denominated value [LESS THE 
 DISCOUNT PROVIDED IN THIS SUBSECTION. THE DISCOUNT UNDER THIS 
 SUBSECTION IS PROVIDED AS COMPENSATION FOR AFFIXING STAMPS 
 TO PACKAGES AS REQUIRED BY AS 43.50.500 - 43.50.700. THE 
 DEPARTMENT MAY REDUCE OR ELIMINATE THE DISCOUNT TO A 
 LICENSEE UNDER THIS SUBSECTION IF THE LICENSEE FAILS TO MEET 
 THE REQUIREMENTS OF AS 43.50.500 - 43.50.700. THE DISCOUNT UNDER 
 THIS SUBSECTION IS EQUAL TO THE SUM OF THE AMOUNTS 
 CALCULATED USING THE FOLLOWING PERCENTAGES OF 
 DENOMINATED VALUE OF STAMPS PURCHASED BY A LICENSEE UNDER 
 THIS SECTION IN A CALENDAR YEAR: 
 (1) $1,000,000 OR LESS, THREE PERCENT; 
 (2) THE AMOUNT THAT IS MORE THAN $1,000,000 BUT NOT 
 MORE THAN $2,000,000, TWO PERCENT; 
 (3) THE AMOUNT THAT IS OVER $2,000,000, ZERO PERCENT]. 
 * Sec. 4. AS 43.50.590(a) is amended to read: 
 (a) The department shall adopt procedures for a refund or credit to a licensee 
 in the amount of the denominated value [, LESS THE DISCOUNT GIVEN UNDER 
 AS 43.50.540,] for 
 (1) unused or damaged stamps;

(2) stamps affixed to cigarette packages that have become unfit for use 
 or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 
 the licensee provides proof acceptable to the department that the cigarettes have not 
 been and will not be consumed in this state; or 
 (3) stamps affixed to cigarette packages that are sold or distributed 
 outside the state if the licensee provides proof acceptable to the department that the 
 cigarettes have not been and will not be consumed in this state and the licensee is 
 properly licensed in the jurisdictions outside the state where the sales or distributions 
 are made. 
 * Sec. 5. AS 43.50.540(h) and AS 43.98.025(e) are repealed. 
 * Sec. 6. This Act takes effect July 1, 2026.