First tax increase for Alaska in 10 years

Alaska is facing the first tax increase in a decade after Gov. Bill Walker signed the measure into law June 27.

The law places new taxes on wholesale refined fuel, including gasoline and heating oil but not aviation fuel or fuel used by the Alaska Marine Highway, the Juneau Empire reported.

The new tax will fund the oil spill prevention and response division of the Department of Environmental Conservation. The division is normally funded by oil revenue, but crude prices have declined and left a multimillion-dollar hole in its budget for the coming fiscal year.

“It was do or die,” said DEC commissioner Larry Hartig of the department’s push to get the bill through a Legislature that typically dislikes new tax proposals. “This was the first year that we were going into the red.”

The bill, which was sponsored by Juneau Republican Rep. Cathy Munoz, squeaked through the House by one vote.

The law will increase gas taxes for the average Alaska driver by about $5 per year, according to a breakdown provided by Munoz’s office.

- Associated Press