Alaska House passes bill removing tax-remittance deductions

The Alaska House passed a bill Wednesday that eliminates several deductions tied to the collection of state taxes and fees.

Committee Substitute for Senate Bill 164 passed 25-14.

The bill removes deductions for remitting the motor fuel tax, tobacco taxes and tire fees. It also addresses discounts on cigarette stamps. The Department of Revenue estimates the bill could raise nearly $500,000 a year for the state.

Supporters said the bill is part of a broader effort to review state finances and remove outdated provisions from the books. The measure eliminates tax discounts and deductions rather than creating a new tax. The bill moved through House Labor and Commerce and House Finance before reaching the floor.

Twenty-five House members voted yes and 14 voted no.

The bill passed without floor amendments during the House's final-day calendar.