(a) There is levied a motor vehicle registration tax within each municipality that elects, by passage of an appropriate ordinance, to come under this section. A municipality shall file a written notice of election with the department and may not rescind the notice for a subsequent fiscal year. The notice must be filed on or before January 1 of the year preceding the year election under this section is to become effective. If a municipality has, before October 15, 1978, levied a motor vehicle registration or ad valorem tax that has been repealed by a vote of the people at any regular or special municipal election, then the election provided for in this subsection is not effective until the ordinance passed by the local governing body has been approved by the people at the next regularly scheduled general or special municipal election.

(b) The biennial tax is levied upon motor vehicles subject to the registration fee under AS 28.10.411 and 28.10.421 and is based on the age of vehicles as determined by model year in the first year of the biennial period, according to the following schedule:

Tax According to Age of Vehicle Since Model Year:

1st2nd3rd4th5th6th7th8th or over

Motor Vehicle

(1) motorcycle$ 17$ 15$ 13$ 10$ 7$ 5$ 4$ 4

(2) vehicles specified

in AS 28.10.421

(b)(1)(A) or (3)(A)12199775539281916

(3) vehicles specified

in AS 28.10.421

(b)(1)(B)12199775539281916

(4) vehicles specified

in AS 28.10.421

(c)(1)-(4) 5,000 pounds or less12199775539281916

5,001-12,000 pounds1981541219977553322

12,001-18,000 pounds447392348304260227205194

18,001 pounds or over546469403348304260216194

(5) vehicles specified

in AS 28.10.421

(b)(3)(B)1981541219977553322

(6) vehicles specified

in AS 28.10.421(j)171513107544

(7) vehicles specified

in AS 28.10.421

(d)(8)12199775539281916

(8) vehicles eligible

for dealer

plates under

AS 28.10.421(d)(9)88.

(c) The registration tax shall be levied, collected, enforced, and otherwise administered in the same manner as provided for the registration fees in this chapter. Only one registration tax may be collected with respect to the same motor vehicle in the year for which the tax is paid.

(d) If a person has paid both the registration fee levied in AS 28.10.411 and 28.10.421 and the registration tax levied in this section, and the department determines that the payor is entitled to a refund in whole or in part of the registration tax, the department shall make the refund to which the person is entitled. A refund may not be made unless application for a refund is filed with the department by December 31 of the year following the year for which the refund is claimed.

(e) The department shall refund money collected under this section, less eight percent as collection costs, to a municipality for which the money was collected, as determined by (1) the address of residence of an individual required to pay the tax, or (2) the situs of the vehicle if the vehicle is not owned by an individual; the tax situs is the location at which the motor vehicle is usually, normally, or regularly kept or used during the registration period. For the first year in which the tax is levied within a municipality, the department may retain actual costs of collection of the tax within the municipality as determined by the department.

(f) Money received by an organized borough under this section shall be allocated by the borough by ordinance for city, area outside city, and service area purposes within the borough.

(g) Payment of the registration tax is in lieu of all local use taxes and ad valorem taxes on motor vehicles subject to the tax. A municipality which elects to come under the provisions of this section may not levy use or ad valorem taxes on motor vehicles subject to the registration tax during a fiscal year in which the election is in effect.

(h) A vehicle owned by a former prisoner of war exempted from registration fees under AS 28.10.421(d)(11) is subject to a motor vehicle registration tax under this section.

(i) [Repealed, § 28 ch 90 SLA 1991.]

(j) A municipality that imposes a motor vehicle registration tax as described under (a) of this section may also, by passage of an appropriate ordinance, increase the scheduled amount of tax described under (b) or (l) of this section, establish a tax for a motor vehicle that is permanently registered under AS 28.10.155, or establish a tax for a trailer that is permanently registered under AS 28.10.421(j). A municipality that chooses to change the tax imposed under (b) or (l) of this section or establishes a tax for permanently registered motor vehicles or trailers shall file a written notice of the change with the department by January 1 of the year preceding the year in which the change in tax is to take effect. A municipality may not change the amount of the tax imposed under this section more than once every two years. The department may charge a municipality a one-time fee to cover the cost to the department of implementing a change under this subsection.

(k) A vehicle registration application and renewal application for vehicles subject to a municipal vehicle registration tax shall itemize the total amount due in a manner that separately shows the amount of vehicle registration tax imposed by the municipality.

(l) Notwithstanding (b) of this section, an annual tax is levied upon vehicles specified in AS 28.10.421(c) and subject to the registration fee under AS 28.10.411 and 28.10.421 if the owner elects to register the vehicle annually as allowed under AS 28.10.108(f). The tax is based on the age of the vehicle as determined by model year according to the following schedule:

Tax According to Age of Vehicle Since Model Year:

1st 2nd3rd4th5th6th7th8thor over

Motor Vehicle

5,000 pounds or less$ 66$ 55$ 44$ 33$ 22$ 17$ 11$ 8

5,001-12,000 pounds11088665544332211

12,001-18,000 pounds24020718516314111910797

18,001 pounds or over29525121818516114111997.