Gov. Dunleavy proposes suspending motor fuel taxes through June 2023

Gov. Mike Dunleavy discusses the state of the coronavirus pandemic during a news conference at the Atwood Building in Anchorage on Thursday, Aug. 26, 2021. (Matthew Faubion / Alaska Public Media)
Gov. Mike Dunleavy at a news conference at the Atwood Building in Anchorage in August 2021. He joined other governors and legislators around the country who support a break in state fuel taxes. (Photo by Matthew Faubion/Alaska Public Media)

Gov. Mike Dunleavy has proposed suspending the state’s motor fuel taxes until June 2023.

Dunleavy joined a growing number of governors and legislators who’ve supported a break in their state’s fuel taxes. 

In Alaska, the tax on gasoline is 8 cents per gallon. 

Dunleavy said the suspension would help Alaskans affected by rising fuel prices and inflation. 

Dunleavy offered the proposal as an amendment to a bill that’s been advancing in the Legislature. The current version of the bill would increase a surcharge on refined fuel by just over one half of 1 cent per gallon. The money would be used to fund the state Division of Spill Prevention and Response.  

Bill sponsor Rep. Andy Josephson, D-Anchorage, said he would support the amendment to provide short-term relief. Josephson is an Anchorage Democrat.

Democratic candidate for governor Les Gara proposed suspending the tax earlier this week. 


Andrew Kitchenman

State Government Reporter, Alaska Public Media & KTOO

State government plays an outsized role in the life of Alaskans. As the state continues to go through the painful process of deciding what its priorities are, I bring Alaskans to the scene of a government in transition.

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