HCSHB2072--MOTORFUELTAXEXEMPTION
SPONSOR: Mayhew
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonTransportation Accountability byavoteof10to3.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
2072.
Thisbillcreatesthe"MotorFuelTaxFundof2021",intowhichthe
refundablerevenueupto$550million,adjustedannuallyfor
inflation,collectedundersubdivision(1)ofsubsection3of
Section142.803,RSMo,willbedeposited. AnymoneyintheFund
notrefundedtoamotorfuelpurchaserwithintherequiredtime
willremainintheFundandbesubjecttoappropriationbythe
GeneralAssemblyforroadandbridgeprojectsforstate-owned
infrastructure. Anyamountover$550million,adjustedannually
forinflation,willbedistributedasfollows:
(1)Sixtypercenttocountiesasfollows: one-halfbasedupona
county'sroadmileagecomparedtotheroadmileageoftheentire
state,andonehalfuponacounty'srurallandvaluationcompared
totherurallandvaluationoftheentirestate;
(2)Twentypercenttobedividedequallybetweenanycitynot
withinacountyandthecountywiththenexthighestpopulation
withinthestate;and
(3)Twentypercenttothecountiesbasesupontheratioofa
countylandassessedasagriculturalversusthetotalamount
assessedasagriculturalinthestate.(Section142.803,RSMo).
BeginningOctober1,2024,thisbillauthorizesataxpayerto
donatethemotorfueltaxrefundtoatax-exemptnonprofitentity
byprovidingtheentitywithallrequireddocumentationanda
signedstatementindicatingthatthenonprofitisentitledtothe
taxpayer'srefund.Thenonprofitentitymustsubmitthe
documentationandstatement,alongwithproofofitstax-exempt
status,totheDirectorofRevenue. Thetaxpayeristhenentitled
tosubtractfromthetaxpayer'sMissouriadjustedgrossincomethe
amountoftherefunddonatedtothenonprofit(Sections142.815and
142.824).
Currently,motorfuelisexemptfromfueltax,andanexemptionand
refundmaybeclaimedbyataxpayerifthetaxhasbeenpaidandno
refundhasbeenpreviouslyissued.Theseexemptionsandrefunds
arecurrentlyissuedonafiscalyearbasis. BeginningJanuary1,2025,exemptionsandrefundsshallbebasedon
thetaxyear.Toclaimanexemptionandrefund,apersonmayelect
toproceedinoneofthefollowingways:
(1)Forareceipt-basedexemptionandrefund,apersonshall
presentastatementcontainingawrittenverificationthatthe
claimismadeunderpenaltyofperjuryandthatstatesthetotal
fueltaxpaidintheapplicabletaxyearforeachvehicleforwhich
theexemptionandrefundisclaimed. Theclaimstatementmaybe
submittedelectronically andshallcontaininformationspecifiedin
thebill;or
(2)Forastandardrefund,atthetimeapersonfileshisorher
Missouriincometaxreturn,apersonmayselecttoclaimthe
exemptionandrefundappliedasanimmediaterefundorappliedasa
creditagainsttheperson'sMissouriincometaxliability. A
personclaimingastandardrefundshallnotbeentitledtoclaima
receipt-basedrefundforthesametaxyear.
Thestandardrefundshallbeallocatedasfollows:
(1)Forthe2024taxyear,$30;
(2)Forthe2025taxyear,$45;
(3)Forthe2026taxyear,$60;
(4)ForalltaxyearsbeginningonorafterJanuary1,2027,$75.
TheDepartmentofRevenueshallprovideaformfortaxpayersto
makecleartheirelectionofeitherareceipt-basedexemptionand
refundorastandardrefund.Theformshallbefiledwiththe
taxpayer'sMissouriincometaxreturnandrequirethatcertain
informationbedisclosed,asspecifiedinthebill(Section
142.822).
Theexemptionandrefundshallbepaidoutoftheproceedsofthe
additionaltaxunderSubsection3ofSection142.803. Ifthe
amountofrefundsclaimedinataxyearexceedsthetaxcollected
forthetaxyear,refundsshallbeallowedbasedontheorderin
whichtheyareclaimed(Section142.822).
Currently,themotorfueltaxrebateunderSection142.822is
eligibleonlyforvehicleswithagrossweightof26,000poundsor
less.
Thisbillextendstheeligibilitytomotorfueldeliveredintoa
motorvehiclewithagrossweightover26,000poundsifthemotor
vehicleisownedbyacorporationlicensedinMissouriwithits primaryheadquartersinthisstate,orownedbyasoleproprietor
whosehomeofficeislocatedinMissouri;providedthatthe
corporationorsoleproprietorsubmitsdocumentationthatany
exemptionandrefundclaimedisbasedsolelyonfueldeliveredinto
amotorvehiclewhileitwasoperatinginMissouri. Ifthevehicle
wasoperatedinmultiplestates,thesubmitteddocumentationmust
separatethefueldeliveredwhileoperatinginMissouriandthe
otherstates(Section142.822).
Currently,exemptionsandrefundsissuedforanyadditionaltaxon
motorfuelarebasedonafiscalyear.Beginninginfiscalyear
2025,theywillbebasedonthetaxyear.
ThisbillspecifiesthatclaimswillbefiledonorafterJanuary
15thbutnotlaterthanApril15thafterthecloseofthetaxyear
forwhichtheexemptionandrefundisclaimed(Sections142.822and
142.824).
ThisbillissimilartoHB1366,HB1370,HB1354,HB520,&HB519
(2023).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatitmakessensetoputthemotor
fueltaxrefundonthecalendaryear,thesamescheduleaspersonal
incometax.Thiswillputsomeoftheroadfundsunderthe
appropriationjurisdictionoftheGeneralAssembly,whichiscloser
tothewillofthepeopleandtherefundwassupposedtobeeasyto
obtain,butitisnot.Thebillwillprovideaconvenientand
simplewaytogettherefund.
TestifyinginpersonforthebillwasRepresentative Mayhew.
OPPONENTS: Thosewhoopposethebillsaythatwithastandard
deductionforthegastaxrefund,manypeoplewillbeabletoclaim
anamountlargerthantheyreallyspent.
TestifyinginpersonagainstthebillwasMissouriansfor
Transportation Investment.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.