2023 Alaska Statutes › Title 43. Revenue and Taxation › Chapter 40. Motor Fuel Tax › Sec. 43.40.092. Disallowance of exemption from motor fuel tax for certain fuel sold for use in jet propulsion aircraft operating in flights that continue from foreign countries.

(a) The provisions of this section apply to disallow the exemption from the motor fuel tax for motor fuel sold for use by a dealer or used by a user in jet propulsion aircraft operating in flights that continue from foreign countries if, for motor fuel produced by a refiner,
(1) the refiner determines, on or after July 1, 1997, that the refiner will expand capacity or expand the refinery to produce more residual fuel oil used in watercraft;
(2) on or after the July 1, 1997, the refiner has voluntarily committed by agreement entered into with the commissioner that, if the refiner expands its oil refining capacity in order to produce additional supplies of fuel for use in jet propulsion aircraft that qualify for the tax exemption, when the refiner expands capacity, the refiner will
(A) use the refiner's best efforts to advertise for, recruit, and employ in the construction activities associated with expanding refinery capacity resident workers who have experience in the specific fields in which they are hired to work;
(B) contract with licensed Alaska firms to prepare materials that are used in construction activities and to provide services in conjunction with activities associated with expanded refinery capacity and, in contracting with those firms, to encourage the refiner's contractors to employ and, when necessary, train state residents; and
(C) enter into contracts with Alaska-licensed vendors, contractors, and suppliers for the provision of supplies and services used in conjunction with activities associated with expanding refinery capacity; and
(3) the commissioner determines that a dealer or user claiming the exemption for motor fuel acquired from a refiner who has entered into an agreement described in (2) of this subsection acquired the motor fuel for which the exemption is claimed from a refiner who has not complied with the requirements of the agreement in completing expansion of its oil refining capacity under the agreement described in (1) of this subsection.
(b) For purposes of this section,
(1) the term “resident worker” means an individual who
(A) is physically present in the state with the intent to remain in the state indefinitely and has a home in the state;
(B) demonstrates that intent by maintaining a residence in the state;
(C) possesses a resident fishing, trapping, or hunting license, or receives a permanent fund dividend; and
(D) may be required to state under oath that the individual is not claiming residency outside of the state or obtaining benefits under a claim of residency outside of the state;
(2) the phrases “Alaska-licensed contractors” and “Alaska firms” mean a contractor or firm that
(A) has held an Alaska business license for one year before performing any work in connection with the commitment described in (a) of this section;
(B) has maintained for one year a place of business within the state that deals in the supplies, services, or construction of the nature required for the commitment described in (a) of this section; and
(C) is
(i) a sole proprietorship and the proprietor is an Alaska resident;
(ii) a partnership and more than 50 percent of the partners are Alaska residents;
(iii) a corporation that has been incorporated in the state or is authorized to do business in the state; or
(iv) a joint venture composed entirely of ventures that qualify under this subparagraph.