Studded Tire Tax Discussion Continues

Submitted by Staff Reporter on 02/16/2017 - 17:52.

Alaska Senator Cathy Giessel is working on a bill that would increase the state's studded tire tax to $200 dollars for a set of four tires.

With the State in a three billion dollar budget deficit and oil prices remaining low, Geissel is worried that oil tax revenues will not cover state infrastructure, such as road repair.

She says studded tires damage roads much faster than stud-less winter tires, reducing the life expectancy of Alaskan roads.

With the current tax on four studded tires at $20, the bill calls for an increase of the tax to $200, or $50 per tire.

That's down from Giessel's initial suggestion of $75 per tire, or $300 for a set

Jim Tewalt, Store manager at American Tire on South Cushman in Fairbanks, commented on the proposal, saying "Probably the least expensive studded tire we sell can would be in the area of $75 to maybe $80 -- and to ask someone to have that much more expense is just out of the question. It's just unfair because your asking someone that has an inexpensive vehicle, inexpensive tires, to pay that size of a fee; and then you have larger trucks, one tons that have very expensive tires... just the percentage isn't theirs. It's not fair."