Repeals a portion of the tax on motor fuel, and the exemption and refund process applicable to that portion
This bill is significant as it modifies tax liabilities associated with motor fuels in Missouri. By repealing parts of the previous tax structure, it could impact state revenues derived from fuel taxes. Proponents may argue that adjusting these tax rates could stimulate the use of alternative fuels, aligning with broader environmental goals. However, eliminating certain exemptions and refund processes may raise concerns about the financial burden on consumers and businesses relying on fuels that previously enjoyed lower tax rates.
Senate Bill 1149 seeks to repeal sections 142.803 and 142.822 of the Revised Statutes of Missouri, which govern the motor fuel tax. The bill proposes the enactment of a new section under 142.803, outlining the taxation structure for various types of motor fuel used or consumed in the state. The tax rates specified include 17 cents per gallon for motor fuel, 9 cents per gallon for aviation fuel, and varying rates for compressed natural gas and liquefied natural gas based on certain time frames. Additionally, the provisions ensure that these taxes are imposed on the ultimate consumer, with rules around administration and collection being maintained from existing statutes.
One notable point of contention arising from SB1149 relates to the potential economic implications for businesses that depend on certain fuel types. The changes in tax rates, particularly for alternative fuels, could incentivize a shift towards these energy sources but also pose challenges for consumers accustomed to lower costs. Additionally, the bill's effects on administrative practices surrounding tax collection and exemptions may be scrutinized, as they affect the overall compliance burden for fuel distributors and consumers alike.