“We actually have the lowest tax rate in the nation,” said Johanna Bales, deputy director for the Alaska Department of Revenue’s Tax Division. “Some states have 30 and 40 cents a gallon tax. Why we have the highest prices has nothing to do with the tax.”
The 8-cent jump at the pump comes after a year suspension of the state gasoline tax. It was part of Sarah Palin’s energy rebate plan approved by the Legislature in Senate Bill 4002, which put a hold on the gas tax from Sept. 1, 2009 to Aug. 31, 2009. The bill also bolstered the 2008 Permanent Fund Dividend payments by $1,200 to mitigate escalating energy costs.
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Over the past 12 months, the state has not collected about $40 million in fuel taxes, money that’s sorely needed, said state Sen. Linda Menard.
“I’m extremely supportive of putting the 8 cents back on,” said Menard, vice-chair of the Senate Transportation Committee. “That 8 cents goes directly to our roads and transportation. People have to remember that transportation includes the 140-some airports we have, the roads, the bridges. We’re the lowest (gas tax in the nation), and we need that for our roads.”
Whether the state needs the money or not, Wasilla resident Jon Dewel was filling up Monday to avoid paying higher prices today.
“I don’t like it at all. Who would like it?” he said while pumping at the Tesoro station at the Parks and Palmer-Wasilla highways. “Who likes any prices going up? I’m getting as much as I can now. I’m surprised more people aren’t here. ... They give it to you with one hand and take it away with the other.”
State Rep. Carl Gato said he’s also concerned about paying more, but said the state can’t — and shouldn’t — be involved in setting prices in a free market society.
“Well, what will happen is people will see an instantaneous 8 cents increase,” he said. “There’s no way out of it. ... It’s a free market, though. The state does not regulate the price of gas. You can set the price of gas anywhere you want as a free market.
Gato also believes that as long as oil prices remain high, residents shouldn’t pay a tax on gasoline.
“As long as the price of oil is high and we’re making money on oil, let’s not charge an additional tax,” he said.
That would be fine with Tim Zinza, a Fairbanks resident filling up in Wasilla Monday for the drive home.
“What did I just pay? $3.21 a gallon?” he said. “That’s a dollar too much. Honestly, though, to me I don’t care so much about the gas as the heating oil. It’s the cost of heating oil that’s killing us in Fairbanks. That’s my biggest beef.”
Contact Greg Johnson at greg.johnson@frontiersman.com or 352-2269.



Comments
21 comment(s)MO Inkslinger wrote on Sep 6, 2009 6:06 AM:
Oil wrote on Sep 4, 2009 11:55 PM:
DL wrote on Sep 3, 2009 1:20 PM:
Get a clue wrote on Sep 3, 2009 11:49 AM:
Simple. We had the second highest prices in the nation behind Hawaii and at one point we were the highest and this was all at the same time the tax was being suspended. Duh! "
Uh... wrote on Sep 2, 2009 10:45 PM:
Payin thru the Nose wrote on Sep 2, 2009 11:02 AM:
Power Wagon wrote on Sep 2, 2009 10:54 AM:
Give it up. You're obviously not smart enough to understand the PFD system since you still insist on looking at it as a "dole out" instead of the allocation of tax money that it is. I have seen you continuously make that reference in this site time after time while people correct you on your big mistake. So either you can't grasp the reality or don't wish to. Either way, you just look like an idiot now. "
Jim from Boston wrote on Sep 2, 2009 9:47 AM:
The oil company analogy is symbolic. The Alaskan belief in the free lunch isn't. "
sharpie wrote on Sep 2, 2009 9:03 AM:
twofixit wrote on Sep 2, 2009 8:17 AM:
lee wrote on Sep 1, 2009 8:24 PM:
oil companies wrote on Sep 1, 2009 4:43 PM:
jp wrote on Sep 1, 2009 4:17 PM:
it's not the oil companies, it's the fact that Obama jump started Wall Street back to business as usual.
the oil companies don't set the price, stock prices do.
my advice; buy oil stocks now. "
jp to Oops wrote on Sep 1, 2009 4:14 PM:
Move! "
Palmer Farm wrote on Sep 1, 2009 3:31 PM:
Well anyway, liberals should be happy. After all, there's nothing they love more than taxes, taxes, taxes! Because all those taxes "help" us so much! "
offsoapstone wrote on Sep 1, 2009 12:33 PM:
Linda Menard statement in this article should be a wake up call to all voters she is a tax and spend repub. "
allisaw wrote on Sep 1, 2009 10:37 AM:
Allen wrote on Sep 1, 2009 9:19 AM:
Jim from Boston wrote on Sep 1, 2009 9:18 AM:
WHAT HAPPENED wrote on Sep 1, 2009 6:46 AM:
Put their feet to the fire for answers, my friends.
There is no vaild excuse or reason for such difference in fuel prices. Look at other states at gasprices.com for a comparison.
We heed help here also. "
Oops wrote on Sep 1, 2009 4:28 AM: