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Alaska2026Passed Legislature

SB164

Eliminate Tax Discounts for Fuel and Tobacco

Last scannedSep 14, 2026, 12:32 AM

In one sentence

This law removes the ability of dealers to keep a small percentage of collected taxes as payment for filing paperwork.

What it does

  • Removes the one percent deduction that fuel sellers could previously keep from motor fuel tax payments, which was limited to $100 per month if filed on time.
  • Eliminates the four-tenths of one percent discount on tobacco taxes that licensees used to retain for accounting and filing expenses.
  • Stops the tiered discounts given to cigarette stamp buyers based on how many stamps they purchase in a year, requiring them to pay full value instead.
  • Updates refund rules so dealers get credit for the full denominated value of unused or damaged cigarette stamps without subtracting old discounts.

Who it affects

  • Dealers who sell motor fuel and refined fuel
  • Licensees who collect tobacco taxes
  • Businesses that buy cigarette tax stamps

Limits and unknowns

  • The law does not explain how much extra money this change will bring into the state budget.
  • The text does not say if businesses can pass these new costs on to customers in higher prices.

Plain language

Terms to know

Remittance
The act of sending money, such as collected taxes, to the government department.
Deduction or Discount
A small amount of tax that a seller was allowed to keep instead of paying it all to the state.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

ELIMINATE TAX DISCOUNTS An Act eliminating deductions for the remittance of the motor fuel tax, tobacco taxes, and tire fees; relating to discounts on cigarette stamps; and providing for an effective date.

Official activity

Bill history

  1. (S) EFFECTIVE DATE(S) OF LAW 7/1/263022
  2. (S) LAW W/O GOV SIGNATURE 6/18 CH 14 SLA 263022
  3. (S) 10:14 A.M. 6/1/26 TRANSMITTED TO GOVERNOR2960
  4. (H) CROSS SPONSOR(S): JOSEPHSON3012
  5. (H) VERSION: CSSB 164(L&C)2981
  6. (H) RETURN TO (S), TRANSMIT TO GOV NEXT2981
  7. (H) EFFECTIVE DATE(S) ADOPTED Y35 N4 A12980
  8. (H) PASSED Y25 N14 A12980
  9. (H) READ THE THIRD TIME CSSB 164(L&C)2980
  10. (H) ADVANCED TO THIRD READING UC2980
  11. (H) READ THE SECOND TIME2979
  12. (H) RULES TO CALENDAR 5/20/20262979
  13. (H) CROSS SPONSOR(S): HANNAN2752
  14. (H) Moved CSSB 164(L&C) Out of Committee -- Delayed to a 9:00 A.M. --Text
  15. (H) FINANCE at 08:00 AM ADAMS 519Text
  16. (H) FN1: (REV)2607
  17. (H) NR: TOMASZEWSKI, STAPP, BYNUM, MOORE2607
  18. (H) DP: GALVIN, HANNAN, SCHRAGE, JOSEPHSON, FOSTER2607
  19. (H) FIN RPT 5DP 4NR2607
  20. (H) CROSS SPONSOR(S): SADDLER2402