Motor Fuel Tax Reduction for Gasohol

Gasohol used on Alaska's highways is taxed at the same rate as gasoline (8¢ per gallon). However, the rate is reduced to 2¢ per gallon when gasohol is sold for consumption in a designated area and during the period that gasohol is required under state or federal law. At this time, the State of Alaska requires gasohol to be sold in Anchorage from October 27 to March 1. Gasohol is fully tax exempt if blended using wood alcohol or alcohol produced from the processing of waste seafood, and if produced within the first five years of a facility's processing such alcohol.