News from the Alaska State Legislature, the Office of Senator Bishop
For Immediate Release: March 02, 2020
Alaska Senate Adopts Modest Increase to Motor Fuel Tax
JUNEAU – The Alaska Senate today approved a modest increase to the state’s motor fuel tax rates.
Senate Bill 115, sponsored by Senator Click Bishop, R-Fairbanks, increases the tax rates on highway and marine motor fuels to 16 cents and 10 cents per gallon, respectively, and is estimated to generate approximately $35 million in additional revenue.
“This is a meaningful step toward funding the state’s backlog of transportation infrastructure and maintenance needs,” said Sen. Bishop. “A modest increase in transportation funding will improve public safety, stimulate economic growth and provide good-paying jobs for Alaskans.”
Alaska’s motor fuel tax rates have not changed for 50 years, since May 1970. With this increase, Alaska would still have the lowest marine fuel tax rate in the nation and the ninth lowest highway fuel tax rate.
Current law sets the per gallon base tax rates for highway fuel at 8 cents and marine fuel at 5 cents.
Alaska’s highway motor fuel tax rate of 8 cents per gallon was typical to those of other states when it was enacted in 1970. Since that time, however, every other state has gradually increased motor fuel tax rates while Alaska has remained frozen in time. Alaska’s 1970 rate, adjusted for inflation, would be roughly 52 cents today, meaning the tax has lost 85 percent of its purchasing power since 1970.
The bill does not propose increases to aviation or jet fuel tax rates because Alaska currently ranks competitively among the other states for these fuel types: 40th for aviation fuel and 36th for jet fuel.
SB 115 passed the Senate by a vote of 12-5 and is now on its way to the Alaska House of Representatives for consideration.
For more information, contact Senate Majority Communications Director Daniel McDonald at (907) 465-4066.
News & Videos more >
JUNEAU – On Tuesday, Senator Bert Stedman, R-Sitka, congratulated the U.S. Coast Guard for its 230th year anniversary.
Senate President Cathy Giessel and Soldotna Senator Peter Micciche today issued the following statements after the tragic death of Soldotna Representative Gary Knopp....
ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today appointed John Binkley to serve on the Redistricting Board
ANCHORAGE – Members of the Alaska Senate Majority this week commended a decision by the Bureau of Land Management (BLM) to approve a proposed route for the Ambler Road project....
On Tuesday, the State of Alaska made one of the most important investments in its 61-year history: a roughly $5 billion transfer from the Alaska Permanent Fund’s Earnings Reserve...
JUNEAU – Sen. Bert Stedman, R-Sitka, applauded a rule today that fixed an issue for commercial fishermen who were unable to receive adequate funding under the Paycheck Protection...
ANCHORAGE – Members of the Alaska Senate today issued the following statements after hearing news of University of Alaska President Jim Johnsen’s resignation....
FAIRBANKS – On Sunday, June 7, Alaska will celebrate the first annual Walter Harper Day in recognition of the Athabascan-Irish man who, on June 7, 1913 became the first person to stand...
SOLDOTNA – Senator Peter Micciche, R-Soldotna, this week urged the leadership of Alaska Department of Public Safety (DPS) to halt their plan that would centralize 911 response...
Find your Senator full map
- Chugiak/Peters Creek
- Eagle River
- Jewel Lake, Kincaid, Turnagain, Lake Hood, Sand Lake, Spenard, Dimond, Campbell Lake
- Midtown, Dimond, Huffman, Klatt, Southport, Bayshore, Oceanview
- Huffman, O'Malley, Abbott, Loop, Independence Park, East Dowling
- Northeast Anchorage, Anchorage Hillside, Indian, Bird, Girdwood and Portage
- Downtown, Airport Heights, Fairview, Government Hill, Mountain View, Russian Jack, South Addition
- Spenard, Midtown, UMed
- Muldoon, JBER, College Gate, Nunaka Valley, Wonder Park
- Palmer, Butte, Eklutna, Fairview, Lazy Mountain Knik, Gateway
- Wasilla, Meadow Lakes, Knik Big Lake, Point MacKenzie, Goose Bay, North Fairview
- Mat-Su, Delta Junction, Valdez, Copper River Valley, Talkeetna, Valdez
- North Pole, Farmers Loop
- UAF & University West, Chena Ridge, Cantwell, Nenana, Tanana, Kenny Lake, Tok, Copper Center & Tanana
- Adak, Bethel, Cold Bay, King Cove, Sand Point & Unalaska
- Barrow, Nome, Kotzebue, Hooper Bay, Northeast + Northwest Alaska