Alaska levies a motor fuel tax on motor fuel sold, transferred, or used within Alaska. The Division collects motor fuel taxes primarily from wholesalers and distributors that hold “qualified dealer” licenses issued by the Department.
HB 158, effective July 1, 2015, adds a surcharge on refined fuel sold, transferred or used in Alaska. The surcharge is collected in the same manner as the motor fuel tax.
Taxpayers file returns and make payments monthly. There are four separate returns: diesel, gasoline, aviation, and gasohol. Taxpayers are allowed to deduct 1% of the tax and surcharge due, limited to a maximum of $100, if the return is complete, timely filed, and the tax is timely paid. Taxpayers must file their returns electronically using Revenue Online.
Consumers may claim a refund for the full rate of tax or surcharge if the consumer paid the full rate at the time of purchase and then used the fuel for exempt purposes. Consumers may also claim a partial refund of the tax if a higher rate was paid at the time of purchase or if the consumer used the fuel for partially exempt purposes.
Municipalities and federally recognized tribes may elect to defer the payment of tax on diesel purchased for its own official use and for resale to residents of the municipality or tribal members by filing a form with the Division and must receive approval prior to receiving untaxed fuel. A list of approved municipalities and tribes can be found here (select "Search for a License" and then "Motor Fuel Tax Deferral Query").
The Division shares with the respective municipalities 60% of taxes attributable to aviation fuel sales at municipally owned or operated airports (a current list can be found here). The Division calculates the amount due to the municipalities based on reports filed by qualified dealers. Qualified dealers that collect tax at municipal airports must attach Schedule 532A to the aviation return.
Additional information on the Motor Fuel Tax can be found here.