Alaska’s Gas Tax is Back, But Maybe Not for Long
Last year in Alaska Senate Bill 4002 allowed for a temporary suspension of the state’s motor fuel tax from September 1, 2008 through August 31, 2009. The bill was championed by then Governor Sarah Palin. On Tuesday the motor fuel tax was reinstated at the previous 8 cents per gallon rate. At 8 cents, the rate is the lowest in the nation. New York’s gas tax is highest at 42.5 cents per gallon.
The Alaska legislature refused to consider extending the suspension in the August session, but Governor Sean Parnell says he wants them to consider extending the gas tax suspension when they meet in January.
Whatever they end up doing, they should pick something and stick with it. Constantly changing rates is bad policy. If the tax and the spending it finances are not worth the burden to consumers then it should be eliminated permanently.
Was this page helpful to you?
Thank you!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback