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SB164 • 2026

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.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
SENATOR MERRICK REPRESENTATIVES Saddler, Hannan, Josephson
Last action
2026-06-19
Official status
CHAPTER 14 SLA 26
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Eliminate Tax Discounts for Fuel and Tobacco

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

What This Bill 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 Names or Affects

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

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.

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.

Bill History

  1. 2026-06-19 3022

    (S) EFFECTIVE DATE(S) OF LAW 7/1/26

  2. 2026-06-19 3022

    (S) LAW W/O GOV SIGNATURE 6/18 CH 14 SLA 26

  3. 2026-06-04 2960

    (S) 10:14 A.M. 6/1/26 TRANSMITTED TO GOVERNOR

  4. 2026-05-20 3012

    (H) CROSS SPONSOR(S): JOSEPHSON

  5. 2026-05-20 2981

    (H) VERSION: CSSB 164(L&C)

  6. 2026-05-20 2981

    (H) RETURN TO (S), TRANSMIT TO GOV NEXT

  7. 2026-05-20 2980

    (H) EFFECTIVE DATE(S) ADOPTED Y35 N4 A1

  8. 2026-05-20 2980

    (H) PASSED Y25 N14 A1

  9. 2026-05-20 2980

    (H) READ THE THIRD TIME CSSB 164(L&C)

  10. 2026-05-20 2980

    (H) ADVANCED TO THIRD READING UC

  11. 2026-05-20 2979

    (H) READ THE SECOND TIME

  12. 2026-05-20 2979

    (H) RULES TO CALENDAR 5/20/2026

  13. 2026-05-17 2752

    (H) CROSS SPONSOR(S): HANNAN

  14. 2026-05-15 Text

    (H) Moved CSSB 164(L&C) Out of Committee -- Delayed to a 9:00 A.M. --

  15. 2026-05-15 Text

    (H) FINANCE at 08:00 AM ADAMS 519

  16. 2026-05-15 2607

    (H) FN1: (REV)

  17. 2026-05-15 2607

    (H) NR: TOMASZEWSKI, STAPP, BYNUM, MOORE

  18. 2026-05-15 2607

    (H) DP: GALVIN, HANNAN, SCHRAGE, JOSEPHSON, FOSTER

  19. 2026-05-15 2607

    (H) FIN RPT 5DP 4NR

  20. 2026-05-04 2402

    (H) CROSS SPONSOR(S): SADDLER

  21. 2026-05-04 2392

    (H) FN1: (REV)

  22. 2026-05-04 2392

    (H) NR: COULOMBE

  23. 2026-05-04 2392

    (H) DP: FRIER, CARRICK, HALL, FIELDS

  24. 2026-05-04 2392

    (H) L&C RPT 4DP 1NR

  25. 2026-05-01 Text

    (H) Moved CSSB 164(L&C) Out of Committee

  26. 2026-05-01 Text

    (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  27. 2026-04-29 Text

    (H) <Bill Hearing Rescheduled to 05/01/26> -- Delayed to 5 min. Following Session --

  28. 2026-04-29 Text

    (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  29. 2026-04-24 Text

    (H) <Bill Hearing Rescheduled to 04/29/26>

  30. 2026-04-24 Text

    (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  31. 2026-04-20 Text

    (H) Heard & Held

  32. 2026-04-20 Text

    (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  33. 2026-04-01 2014

    (H) L&C, FIN

  34. 2026-04-01 2014

    (H) READ THE FIRST TIME - REFERRALS

  35. 2026-03-31 2113

    (S) VERSION: CSSB 164(L&C)

  36. 2026-03-31 2113

    (S) TRANSMITTED TO (H)

  37. 2026-03-31 2107

    (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  38. 2026-03-31 2106

    (S) PASSED Y16 N4

  39. 2026-03-31 2106

    (S) READ THE THIRD TIME CSSB 164(L&C)

  40. 2026-03-30 2092

    (S) ADVANCED TO THIRD READING 3/31 CAL

  41. 2026-03-30 2092

    (S) L&C CS ADOPTED UC

  42. 2026-03-30 2092

    (S) READ THE SECOND TIME

  43. 2026-03-30 2092

    (S) RULES TO CALENDAR 3/30/2026

  44. 2026-03-25 2047

    (S) FN1: (REV)

  45. 2026-03-25 2047

    (S) NR: KAUFMAN, KIEHL

  46. 2026-03-25 2047

    (S) DP: OLSON, STEDMAN, HOFFMAN, CRONK, MERRICK

  47. 2026-03-25 2047

    (S) FIN RPT CS(L&C) 5DP 2NR

  48. 2026-03-24 Text

    (S) Moved CSSB 164 (L&C) Out of Committee

  49. 2026-03-24 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  50. 2026-03-17 Text

    (S) Heard & Held -- Please Note Time Change --

  51. 2026-03-17 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  52. 2026-03-04 1826

    (S) FN1: (REV)

  53. 2026-03-04 1826

    (S) DP: MERRICK, GRAY-JACKSON

  54. 2026-03-04 1826

    (S) NR: BJORKMAN, YUNDT

  55. 2026-03-04 1826

    (S) L&C RPT CS 2NR 2DP SAME TITLE

  56. 2026-03-02 Text

    (S) Moved CSSB 164(L&C) Out of Committee

  57. 2026-03-02 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  58. 2026-02-23 Text

    (S) Heard & Held

  59. 2026-02-23 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  60. 2025-04-09 746

    (S) L&C, FIN

  61. 2025-04-09 746

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

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.

Current Bill Text

Read the full stored bill text 
Enrolled SB 164
LAWS OF ALASKA

2026

Source Chapter No.
CSSB 164(L&C) _______

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.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

-1- Enrolled SB 164

AN ACT

Eliminating deductions for the remittance of the motor fuel tax, tobacco taxes, and tire fees; 1
relating to discounts on cigarette stamps; and providing for an effective date. 2
_______________ 3
* Section 1. AS 43.40.013 is amended to read: 4
Sec. 43.40.013. Collection of the refined fuel surcharge and the motor fuel 5
tax. Every dealer who sells or otherwise transfers refined or motor fuel in the state 6
shall collect the surcharge and tax required in this chapter at the time of sale, and remit 7
the total surcharge and tax collected during each calendar month of each year to the 8
department by the last day of each succeeding month. Every user shall likewise remit 9
the surcharge and tax required in this chapter and accrued on fuel actually used by the 10
user during each month. [IF THE MONTHLY RETURN IS TIMELY FILED, ONE 11
PERCENT OF THE TOTAL MONTHLY SURCHARGE AND TAX DUE, 12
LIMITED TO A MAXIMUM OF $100, MAY BE DEDUCTED AND RETAINED 13

Enrolled SB 164 -2-
TO COVER THE EXPENSE OF ACCOUNTING AND FILING THE MONTHLY 1
RETURN.] At the time the remittance is made, each dealer or user shall submit a 2
statement to the department showing all fuel that the dealer or user has distributed or 3
used during the month. 4
* Sec. 2. AS 43.50.330(b) is amended to read: 5
(b) The licensee shall remit with the return the tax due under AS 43.50.300 for 6
the month covered by the return [, AFTER DEDUCTING FOUR-TENTHS OF ONE 7
PERCENT OF THE TAX DUE, WHICH THE LICENSEE SHALL RETAIN TO 8
COVER THE EXPENSE OF ACCOUNTING AND FILING THE RETURN]. 9
* Sec. 3. AS 43.50.540(c) is amended to read: 10
(c) Each [EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, 11
EACH] stamp shall be sold to a licensee at its denominated value [LESS THE 12
DISCOUNT PROVIDED IN THIS SUBSECTION. THE DISCOUNT UNDER THIS 13
SUBSECTION IS PROVIDED AS COMPENSATION FOR AFFIXING STAMPS 14
TO PACKAGES AS REQUIRED BY AS 43.50.500 - 43.50.700. THE 15
DEPARTMENT MAY REDUCE OR ELIMINATE THE DISCOUNT TO A 16
LICENSEE UNDER THIS SUBSECTION IF THE LICENSEE FAILS TO MEET 17
THE REQUIREMENTS OF AS 43.50.500 - 43.50.700. THE DISCOUNT UNDER 18
THIS SUBSECTION IS EQUAL TO THE SUM OF THE AMOUNTS 19
CALCULATED USING THE FOLLOWING PERCENTAGES OF 20
DENOMINATED VALUE OF STAMPS PURCHASED BY A LICENSEE UNDER 21
THIS SECTION IN A CALENDAR YEAR: 22
(1) $1,000,000 OR LESS, THREE PERCENT; 23
(2) THE AMOUNT THAT IS MORE THAN $1,000,000 BUT NOT 24
MORE THAN $2,000,000, TWO PERCENT; 25
(3) THE AMOUNT THAT IS OVER $2,000,000, ZERO PERCENT]. 26
* Sec. 4. AS 43.50.590(a) is amended to read: 27
(a) The department shall adopt procedures for a refund or credit to a licensee 28
in the amount of the denominated value [, LESS THE DISCOUNT GIVEN UNDER 29
AS 43.50.540,] for 30
(1) unused or damaged stamps; 31

-3- Enrolled SB 164
(2) stamps affixed to cigarette packages that have become unfit for use 1
or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 2
the licensee provides proof acceptable to the department that the cigarettes have not 3
been and will not be consumed in this state; or 4
(3) stamps affixed to cigarette packages that are sold or distributed 5
outside the state if the licensee provides proof acceptable to the department that the 6
cigarettes have not been and will not be consumed in this state and the licensee is 7
properly licensed in the jurisdictions outside the state where the sales or distributions 8
are made. 9
* Sec. 5. AS 43.50.540(h) and AS 43.98.025(e) are repealed. 10
* Sec. 6. This Act takes effect July 1, 2026. 11