Fuel tax hike in Alaska gets an icy reception

| 3/18/2003

An attempt by Alaska Gov. Frank Murkowski to raise the motor fuel tax in the state by up to 12 cents may have run out of gas in the Legislature.

The plan would take the state’s current 8-cent tax and raise it to 20 cents, according to a report from the Anchorage Daily News. A number of legislators from both major parties indicated they had concerns about the increase.

The governor’s office indicated the proposed tax increase would raise about $41 million to help pay for road work. However, opponents say the money would, under Alaska’s constitution, go into the general fund, with no guarantee that it would be used for highways.