Alaska lawmakers are moving to temporarily lift the state’s motor fuel tax as the price of gasoline in the state remains high.<\/p>\n
On Friday, Gov. Mike Dunleavy asked the Legislature to lift the tax and the Alaska State Senate unanimously passed a nonbinding Sense of the Senate supporting the move.<\/p>\n
“Oil prices are at record levels, and, unlike the high oil price environment of 2007-2014, this climb is occurring with concurrent increases in all costs of living,” Dunleavy said in a statement. “The transfer of wealth from Alaskans to the State Treasury must have some equitability restored to it.”<\/p>\n
Gubernatorial candidate Les Gara, a former state lawmaker, noted he had called for the suspension of the fuel tax earlier in the week. In a statement, Gara also called on the governor to end the state’s $1.3 billion in tax credits to oil companies.<\/p>\n
“Oil companies are making windfall profits from war and a pandemic. This whole campaign we’ve called for an end to these oil company subsidies, and now those subsidies are a war windfall for oil companies,” Gara said.<\/p>\n
The tax is currently .08 cents per gallon under state law and hasn’t been updated since 1970, according to state Rep. Andy Josephson, D-Anchorage, whose bill to raise the motor fuel tax<\/a> just moved out of the House Finance Committee. Dunleavy sent an amendment to the committee Friday which would suspend the tax until June 30, 2023.<\/p>\n