At the pump

Three Alaska Senate Democrats have filed a bill that would double the state’s gas tax. Jason Todd/Metro Creative

Three Senate Democrats are driving a proposal to increase Alaska’s motor fuel tax, which is the lowest in the nation.

The new legislation, introduced in special session, would double Alaska’s motor fuel tax from 8 cents to 16 cents per gallon.

Alaska would still rank among the bottom 10 states for gas taxes at the pump, if the increase is adopted into law, supporters said.

The proposed motor fuel tax increase is sponsored by Senate Minority Leader Tom Begich of Anchorage, Sen. Elvi Gray-Jackson of Anchorage and Sen. Donny Olson of Golovin.

In other revenue-raising measures, the bill would decrease the oil and gas per barrel tax credit from $8 to $5.

It also would require highly profitable non-public companies to pay the corporate income tax rate.

The bill was introduced during the Legislature’s third special session, called by the governor to focus on fiscal policy. Lawmakers are working to find new revenue sources.

“It was noted by the non-partisan Legislative Finance Division that Alaska faces a $285 million budget shortfall for fiscal year 2023, even after overdrawing from the Permanent Fund earnings reserve account,” according to a statement issued by the Senate Democrats.

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