AKRON (June 30, 2003) — Alaska has passed a bill that taxes new and studded tires and earmarks the revenues for the state general fund.
The bill passed both houses of the state legislature in May and is awaiting a signature from Gov. Frank Murkowski who is expected to sign it, according to Dick Nordness, executive director of the Northwest Tire Dealers Association. The bill would impose a $2.50 tax per tire on the retail sale of new tires for motor vehicles designated for highway use and a $5 tax per tire for studded tires having studs weighing 1.1 grams each.
Once signed, the bill would go into effect July 1, 2004. Tire dealers will collect the fees and remit them to the state. Dealers would keep 5 percent of the total amount gathered to cover collection costs.