Alaska House votes to rescind tire tax

Posted: Thursday, April 10, 2008

JUNEAU - Members of the House say it's time to repeal a tax on new tires and get rid of the extra fee for studded tires.

On Wednesday, the House unanimously passed House Bill 106, a measure doing away with both. The bill was introduced last year by Gov. Sarah Palin.

The bill must still get the Senate's approval before the session is scheduled to end Sunday.

If it passes, residents will no longer have to pay a $2.50 fee for each new tire purchased, plus an additional $5 on tires with heavy studs.

The money brings about $1.5 million to the state's coffers, but it also costs $78,000 for the state to carry out the collection.

Should it pass and be signed by Palin, it would take effect July 1.

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