Motor Fuel Tax



Alaska levies a motor fuel tax and surcharge on motor fuel sold, transferred, or used within Alaska. The Department of Revenue’s Tax Division collects motor fuel taxes primarily from wholesalers and distributors that hold “qualified dealer” licenses issued by the division.

(A qualified dealer is a person who refines, imports, manufactures, produces, compounds or wholesales refined or motor fuel.)

Fuel TypeRate/Gallon
Highway$0.08
Marine$0.05
Aviation Gasoline$0.047
Jet Fuel$0.032

In addition to the tax rates, there is a motor fuel surcharge, which is $0.0095 a gallon. It went into effect July 1, 2015.

Taxpayers file returns and make payments monthly. There are four separate returns: gasoline, diesel, aviation and gasohol.

Taxpayers must file their returns electronically using Revenue Online. The due date is the last day of the month following the month of sale or taxable use. Taxpayers may deduct 1% of the tax and surcharge due, limited to a maximum of $100 per return, as a credit for timely filing to cover the expense of accounting and filing the monthly return.

Motor fuel tax exemptions – Sales and use for heating, for federal, state, and local government agencies, foreign flights (jet fuel), exports, charitable institutions, bunker fuel (residual fuel oil or #6 fuel oil), and for sales or transfers between qualified dealers.

Surcharge exemptions – Sales and use for federal and state government agencies, liquefied petroleum gas, aviation fuel, for fuel refined and used outside the United States, and for sales and transfers between qualified dealers.

Consumers may claim a refund for the full tax rate or surcharge if the consumer paid the full tax rate or surcharge 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.

Resellers, usually retailers, may claim a refund for the full tax if the reseller paid the tax, and then sold the fuel for exempt use and did not collect the tax.

For diesel specifically, municipalities and federally recognized tribes may elect to defer the payment of tax on diesel purchased for their own official use and for resale to residents of the municipality or tribal members by filing a form with the Tax Division. The municipalities and federally recognized tribes 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.") Then, if the fuel for which taxes were deferred ends up being sold for a taxable use, the municipality or tribe must file a tax return and pay the tax.

For aviation fuel, the Tax 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 Tax 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.



How to Contact Us
Email
dor.tax.motorfuel@alaska.gov

OR

Forms, Licensing, Bonding and Examination
Maria K Tate
907-269-6948 - Anchorage
 


Technical Questions
Dustin P Heintzelman
907-269-2047 - Anchorage