COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3316H.02C Bill No.:HCS for HB 2072 Subject:Taxation and Revenue - General; Motor Fuel; Taxation and Revenue - Sales and
Use; Tax Incentives; Transportation; Department of Revenue
Type:Original Date:March 13, 2024Bill Summary:This proposal modifies provisions relating to the motor fuel tax exemption.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
General RevenueCould exceed
($1,061,713)
Could exceed
($574,316)
Could exceed
($627,443)
Could exceed
($627,443)
Total Estimated
Net Effect on
General
Revenue
Could exceed
($1,061,713)
Could exceed
($574,316)
Could exceed
($627,443)
Could exceed
($627,443)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Motor Fuel Tax
Fund of 2021
$155,843,225 to
$232,489,415
$275,969,168 to
$321,153,012
$208,194,437 to
$257,302,121
$160,085,192 to
$209,192,876 State Road Fund($248,695,055 to
$257,305,693)
($351,036,017 to
$385,478,570)
Could exceed
($342,233,391 to
$385,286,583)
Could exceed
($342,233,391 to
$385,286,583)
Total Estimated
Net Effect on
Other State
Funds
($24,816,278 to
92,851,830)
($64,325,558 to
$75,066,849)
Could exceed
($127,984,462 to
$134,038,954)
Could exceed
($176,093,707 to
$182,148,199)
Numbers within parentheses: () indicate costs or losses. L.R. No. 3316H.02C
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Total Estimated
Net Effect on
All Federal
Funds $0$0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Total Estimated
Net Effect on
FTE 000$0
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND
AFFECTED
FY 2025FY 2026FY 2027Fully
Implemented
(FY 2028)
Local
Government
($91,983,102
to
$95,167,859)
($129,835,239 to
$142,574,266)
Could be less
than
($126,579,473 to
$142,503,257)
Could be less
than
($126,579,473 to
$142,503,257) L.R. No. 3316H.02C
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
Bill as a Whole
SB 262 adopted in 2021 created a system by which the motor fuel tax would increase annually
over a period of years. The motor fuel tax rate at that time was $0.17 per gallon and it was to
increase $0.025 per year until it reached $0.295 per gallon.
The rate is currently increasing as follows:
FY Tax
Rate
Refund Can Be
Claimed (July
to Sept)
Tax IncreaseTotal Motor
Fuel Tax
FY 2022FY 2023$0.025$0.195FY 2023FY 2024$0.050$0.220FY 2024FY 2025$0.075$0.245FY 2025FY 2026$0.100$0.270FY 2026+FY 2027+$0.125$0.295
This proposal will make numerous changes to how SB 262 is currently being implemented.
Section 142.803 Distribution of Motor Fuel Tax
The Department of Revenue is responsible for the collection and distribution of the state motor
fuel tax. The motor fuel tax is distributed per the Missouri Constitution Article IV, Section 30(a)
with 73% distributed to the State Road Fund (0320), 15% distributed to cities and 12%
distributed to counties.
This proposal would require the Department, upon receipt of the motor fuel tax, to separate the
original $0.17 per gallon tax from the increasing amount of tax, currently $0.245 per gallon. The
current increasing amount of tax is $0.075 per gallon. This proposal would require the
Department to put this additional tax into a newly created Motor Fuel Tax Fund of 2021. The
Department would use this fund to pay out the future refunds. At the end of each refund period,
if there was any money left over in the fund, the General Assembly would be responsible for
determining its distribution.
DOR is unsure if diverting the additional motor fuel tax money would violate the Constitution.
For fiscal note purposes only, DOR will show the impact of the tax money being diverted. L.R. No. 3316H.02C
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SB 262 also created a process by which a taxpayer who did not want to have their additional tax
each year used for road improvements, could seek a refund of that additional tax. The refund is
applied for in the following fiscal year in which the tax is paid. The Department issues the
refunds out of the monthly distribution to the funds.
This proposal would become effective on August 28, 2024. This is in the middle of the FY 2023
refund period of July 1, 2024 to September 30, 2024. This means that only the refunds from
August 28th to Sept 30th could be paid out of this new fund. However, motor fuel tax is
submitted the second working day of the month so DOR may not have any money in the account
until Sept 3rd to make the payments.
Using the current revenue estimates DOR assumes the following impact from the diversion:
Table 1: Estimated Impact from Diverting Additional Fuel Tax by Fund FY 2025FY 2026State FundsLowHighLowHighMFTF 2021 - diversion in$340,678,157 $352,473,552 $480,871,256 $528,052,836 State Road Fund - diversion out($248,695,055)($257,305,693)($351,036,017)($385,478,570)Total State Impact$91,983,102 $95,167,859 $129,835,239 $142,574,266 Local Funds CART - diversion out($40,881,379)($42,296,826)($57,704,551)($63,366,340)Other - diversion out($51,101,724)($52,871,033)($72,130,688)($79,207,925)Total Local Impact($91,983,102)($95,167,859)($129,835,239)($142,574,266)Table 1: Estimated Impact from Diverting Additional Fuel Tax by Fund (cont.) FY 2027 State FundsLowHighMFTF 2021 - diversion in$468,812,864 $527,789,839 State Road Fund - diversion out($342,233,391)($385,286,583)Total State Impact$126,579,473 $142,503,257 Local Funds CART - diversion out($56,257,544)($63,334,781)Other - diversion out($70,321,930)($79,168,476)Total Local Impact($126,579,473)($142,503,257)
This version of the proposal would require any money over the $550 million transferred to the
Motor Fuel Tax Fund of 2021 to be distributed based on a new formula outlined in the proposal.
The $550 million amount is also to be inflation adjusted annually. The formula would give 60%
to the counties, 10% to St. Louis City, 10% to Kansas City and 20% to counties based on the
number of acres of agriculture. L.R. No. 3316H.02C
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It should be noted that the first $550 million after refunds are paid out, would be appropriated for
projects determined by the General Assembly. As noted above, the Fund is not projected to have
$550 million transferred to it, so it is assumed this provision will not be implemented.
This proposal would require the Department to update its computer system to handle another
fund. The Department assumes it would cost $1,785.
Section 142.815, 142.822.1 & 142.824 Motor Fuel Refund Given to Charity
Non-Highway Use Motor Fuel Tax Exemption and Refund
Currently, taxpayers who purchase motor fuel for non-highway use (farms, boats) are allowed to
claim a refund of the motor fuel tax they pay. The taxpayer submits their receipts to the
Department showing the gallons purchased with a refund request form. Once processed, the
Department sends the taxpayer a refund of their motor fuel tax paid.
Starting October 1, 2024, this provision will allow the non-highway use taxpayer to provide their
receipts to a federally qualified tax-exempt entity (charity) who would claim the refund on the
taxpayer’s behalf. This is established as a way of donating money for the taxpayer to the charity.
This provision then allows the taxpayer to receive a subtraction against their Missouri adjusted
gross income of the amount donated. This subtraction is only allowed if the taxpayer does not
claim the refund amount as a charitable contribution on their federal income tax form.
In FY 2023, the Department processed $9,146,015 in non-highway refund claims. DOR
estimates that refund claims were made for 45,282,564 gallons.
Accounting for the SB 262 increases, DOR estimates the total non-highway use refund claims
could total $13,349,859 by tax year 2026. The estimated amount of non-highway related motor
fuel tax refunds through the implementation of SB 262 is:
Table 2: Estimated
Refunds by YearFiscal
Year
Non-
Highway Use
Refunds
2024$11,085,051 2025$12,219,494 2026$13,349,859 2027$13,349,859
The Department is unable to determine how many of these taxpayers will choose to donate their
receipts to a charity and then claim the deduction. For fiscal note purposes, DOR will show the
loss up to the total amount estimated to be refunded. The Department notes that deductions do L.R. No. 3316H.02C
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not reduce revenues on a dollar-for-dollar basis, but rather in proportion to the top tax rate
applied.
Therefore, DOR will show the estimated impact to General Revenue from the deduction
throughout the implementation of SB 262 and with the individual income tax rate reductions
scheduled under SB 3 (2022).
Table 3: Estimated Revenue Loss by Fiscal YearTax Year (Fiscal Year)
Tax
Rate
2024
(FY25)
2025
(FY26)
2026
(FY27)
2027
(FY 28)
4.80%($532,082)($586,536)($640,793)($640,793)4.70% ($574,316)($627,443)($627,443)4.60% ($614,093)($614,093)4.50% ($600,744)
This is a new subtraction that would need to be added to the MO-A form. This would require
computer programming changes, form changes and website changes. These changes are
estimated to cost $8,923. Additionally, this will result in additional errors and correspondence
generated and DOR will need 1 Associate Customer Service Representative ($35,880) to
handle the workload.
Highway Users Donation of Motor Fuel Tax Refund
Section 142.822 will allow a taxpayer who purchases motor fuel for use on the highway to
donate their increased motor fuel tax receipts to a charity. However, they are not granted a
deduction for doing so. Since the fiscal note for SB 262 assumed all eligible taxpayers would
receive a refund of the increased motor fuel rate, and this proposal just changes who claims the
refund, this is not expected to result in any additional fiscal impact from who claims the refund.
However, a person who donates to a charity has the ability to claim a deduction on their federal
and state tax returns. If this proposal encourages more people to claim the federal charity
deduction that could lower their federal adjusted gross income that is reported on their Missouri
tax return. That in turn could lower the amount of taxes the state receives. It is unknown how
many people would do this. This could result in a $0 to Unknown loss.
Change in Information Submitted on Refund Form
This proposal no longer requires that the vehicle identification number or the name and address
of the seller of the motor fuel be provided. Without that information, DOR assumes taxpayers
may claim fuel purchased in other states. The fiscal note estimates are based on the current
amount of fuel sold in Missouri. Should fuel from other states be claimed, the actual impact of
this proposal could be significantly higher than estimated. L.R. No. 3316H.02C
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Section 142.822 Motor Fuel Refund Period Change
SB 262 contained a provision that created a refund program for highway users who did not want
to pay the increased motor fuel rate. While they would still be required to pay the tax at the fuel
pump, they could request from DOR that the increased amount be refunded to them. The refund
period was established starting July 1 - Sept 30th of the following fiscal year. Since the rate hike
is for the full fiscal year (July to June) the refund period also covered that same fiscal year.
In order to receive the refund, a taxpayer completes a form with the statutorily required
information and the extra motor fuel tax is refunded.
This proposal changes the refund period. Instead of claiming the credit from July to September
after the fiscal year ends, this proposal moves the refund period to January 15th to April 15th of
each year. Filing at this time of year, will result in refund claim forms having 2 separate motor
fuel rates on them. This will start on January 1, 2025.
Table 4: Timing of Refund ClaimsCurrent Refund TimingProposed Refund Timing
Date of Purchase
Fuel
Tax
Rate
Date
Fiscal
YearDateFiscal Year
7/2023 - 12/2023$0.075 7/2024 - 9/2024FY 20251/2024 - 4/2024FY 20251/2024 - 6/2024$0.075 7/2024 - 9/2024FY 20251/2025 - 4/2025FY 20257/2024 - 12/2024$0.100 7/2025 - 9/2025FY 20261/2025 - 4/2025FY 20251/2025 - 6/2025$0.100 7/2025 - 9/2025FY 20261/2026 - 4/2026FY 20267/2025 - 12/2025$0.125 7/2026 - 9/2026FY 20271/2026 - 4/2026FY 20261/2026 - 6/2026$0.125 7/2026 - 9/2026FY 20271/2027 - 4/2027FY 20277/2026 - 12/2026$0.125 7/2027 - 9/2027FY 20281/2027 - 4/2027FY 2027
This proposal will not result in any additional gains or losses to the motor fuel funds than what
was projected in SB 262. It changes the timing of the refunds and not who or how many
taxpayers may qualify for the refund. How much of the refunds will now shift to another fiscal
year (refund period) is shown below.
DOR notes that the second round of the refund period was completed from July 2023 to
September 2023 and DOR records indicate $692,396 in refunds were claimed. While the
additional tax received was $211,641,930. Therefore, DOR refunded approximately 0.33%
($692,396/$211,641,930) of the additional revenue.
DOR had done revenue estimates for SB 262, that were updated using the FY 2022 motor fuel
gallons sold data for this fiscal note. Additionally, for SB 262 DOR had assumed a low range of
refunds at 15% (based on another state with a similar program). DOR assumes that given the L.R. No. 3316H.02C
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increasing price of the fuel tax and current economic conditions, more than the 0.33% refunds
currently requested could be received in the upcoming fiscal years.
For this fiscal note, DOR is showing the refund claims ranging from the current 0.33% to the
15% under SB 262 for the shift in the refund period.
While this proposal will not increase the number of refunds, it will have a cash flow impact due
to the Motor Fuel Tax Refund of 2021 Fund. Using refund estimates for SB 262, DOR assumes
an increase in refunds of $525,994 to $24,116,784 in FY 2025. In FY 2026 it could have an
impact of $131,498 to $6,029,196. After that there will be no additional cash flow impact.
This proposal will result in the Department needing to change its forms and its computer
program to accept more than one tax rate at a time. This is estimated to cost $10,000. Having
more than one motor fuel tax rate on the refund claim form may slow down the processing of the
forms. DOR needs one Associate Customer Service Representative
claims processed at a single rate per year. Additionally, DOR records indicate the average time
to process a refund request was 19 days. If it is determined that additional FTE are needed to
help process the refunds, DOR will seek those through the appropriation process.
Section 142.822.4(2) Income Tax Refund for Motor Fuel
This proposal adds a process by which a taxpayer can decide to file for a flat rate standard motor
fuel refund amount rather than fill out the itemized refund form above. This standard refund
would be claimed on their income tax return and applied against their state tax liability. It would
be subject to the following limits.
Table 5: Standard
Refund Amount
Tax YearRefund2024$30 2025$45 2026$60 2027+$75
DOR records indicate that in tax year 2021, there were 3,217,809 Missouri individual income tax
returns filed. Assuming that individuals who currently file the detailed refund form will continue
to do so because of the size of their return exceeded the standard refund amount offered, DOR
can assume there will be a potential 3,207,283 (3,217,809 income tax returns – 10,526 itemized
returns) additional filers. This could result in the following estimated income tax claims per
year. L.R. No. 3316H.02C
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Table 6: Income Tax Claims by
Year
Tax
Year
Fiscal
YearRefund Claim
20242025$96,218,490 20252026$144,327,735 20262027$192,436,980 20272028$240,546,225
This proposal in Section 142.822.5 requires both the detailed refund request and the standard
refund request to be paid out of the money collected from the additional tax and therefore from
the Motor Fuel Tax Fund of 2021 Fund. Therefore, this would result in the following impact.
Table 7: Standard and Itemized Refund Impacts FY 2025FY 2026 LowHighLowHighStandard
Refund($96,218,490)($144,327,735)
Receipt
Refund($525,994)($24,116,784)($131,498)($6,029,196)
Total($96,744,484)($120,335,274)($144,459,233)($150,356,931)Table 7: Standard and Itemized Refund Impacts (cont.) FY 2027FY 2028 LowHighLowHighStandard
Refund($192,436,980)($240,546,225)
Receipt
Refund $0 $0 $0 $0
Total($192,436,980)($192,436,980)($240,546,225)($240,546,225)
This proposal will require the Department to modify its MO-1040 and MO-1040P forms, website
and individual income tax computer system. These changes are estimated to cost $8,923.
Currently, taxpayers are allowed to submit these forms electronically or mailed on paper. Should
they be mailed to DOR separate than their tax return, DOR assumes no additional impact.
However, if a taxpayer mails their claim form with their individual income tax return, this could
slow down the processing of the returns and require additional temporary staff ($12,750) to help
sort out those claim forms. L.R. No. 3316H.02C
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SB 262 requires all refund requests to be processed within 45 days or DOR must pay interest on
the claim. Should moving the deadline result in slower processing times, this could result in an
unknown amount of interest being paid.
Section 142.822.9 Motor Fuel Refund for Vehicles Over 26,000 Pounds
SB 262 contained a provision that would not allow a vehicle over 26,000 pounds to qualify for
the refund. This proposal removes that restriction and would allow them to qualify for the
refund of the increasing fuel tax rate. To qualify, those vehicles over 26,000 pounds must
provide documentation proving their motor vehicle is owned and licensed in Missouri by a
corporation or sole proprietor and that the vehicle only operated in Missouri. Should it operate
outside the state the miles and fuel must be separated by what was used in Missouri and what
was used outside Missouri.
This provision would become effective August 28, 2024, so these vehicles will become eligible
to claim the refund starting July 1, 2025 (FY 2025) for the period of August 28, 2024 to June 30,
2025.
For the fiscal note of SB 262, the Department projected the motor fuel increase and the amount
expected to be refunded if 15% of all taxpayers (low) applied for the refund and if 100% of the
taxpayers (high) applied for the refund. This range was based on a similar program in South
Carolina that capped the number of participants at 15% and the total amount that could be
claimed. DOR used information on the number of actual vehicles and their average miles driven
to estimate the refund amount. While the first year of the program did not find the 15% filing for
the refund, changes in the economic conditions and the increasing amount of the tax, indicates
more taxpayers may claim the refund in the future. Therefore, for the purpose of this fiscal note
DOR will continue to use that same 15% - 100% participation. Additionally, these heavier
vehicles tend to use more fuel, which may encourage more participation in the refund program.
Based on information from the Motor Vehicle Databases DOR was able to determine there are
approximately 1.2 million vehicles that were ineligible for the refund based on their vehicles
weight. However, DOR was unable to determine how many of them would still not meet the
requirements of this proposal. For fiscal note purposes, DOR will assume all meet the new
requirements and DOR notes the impact will be less than projected should some vehicles still not
qualify.
DOR’s FY 2023 motor fuel collections show there were 4,232,838,592 gallons of gasoline and
diesel purchased in FY 2023. Using these numbers, DOR was able to calculate newer revenues
and potential refunds to SB 262. Then DOR was able to calculate the potential refunds by
removing the current qualifying vehicles. These are the updated revenue and refund potential
amounts. L.R. No. 3316H.02C
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Table 8: Estimated Additional Refunds FY 2025FY 2026FY 2027Estimated Collections (prior FY)$317,462,894 $423,283,859 $529,104,824 Estimated Current 100% Potential Refunds-$241,167,841 $321,557,122 $401,946,402 Remaining Collections (for non-qualifying
MVs)$76,295,053 $101,726,737 $127,158,422
Estimated Low Additional Refund (15%) ($11,444,258)($15,259,011)($19,073,763)Estimated High Additional Refund (100%) ($76,295,053)($101,726,737)($127,158,422) Estimated Refunds for every 1% uptake ($762,951)($1,017,267)($1,271,584)Estimated Refunds for every 5% uptake ($3,814,753)($5,086,337)($6,357,921)
This has the potential to increase the amount of the refunds each year. It is unknown how many
additional refunds will be claimed. DOR estimates that for every 5% increase in refund claims,
it could increase refund amounts by $6,357,921 once fully implemented.
Table 9: Estimated Impact FY 2025FY 2026FY 2027State FundLow (15%)High (100%)Low (15%)High (100%)Low (15%)High (100%)Motor Fuel Tax
Fund of 2021($11,444,258)($76,295,053)($15,259,011)($101,726,737)($19,073,763)($127,158,422)
Section 142.822.10 Mobile Application
This proposal requires DOR to provide a mobile application to allow users to submit their
receipts at the time of purchase. This would be used by people doing the itemized refund. This
proposal appears to allow the refund at the time of purchase rather than waiting until the next
refund period. This would not change the number of filers, just the cash flow of when the
refunds will occur. DOR assumes they will need to contract for a vendor to create such a system.
This is estimated to cost over $500,000.
Bill Summary
This bill will result in the following impact: L.R. No. 3316H.02C
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Table 10: Summary FY 2025FY 2026State FundsLowHighLowHighGeneral Revenue - Refund DeductionUp to ($532,082)Up to ($574,316)Up to ($583,536)State Road Fund - Diversion Out($248,695,055)($257,305,693)($351,036,017)($385,478,570) Motor Fuel Tax Fund of 2021 Diversion in$340,678,157 $352,473,552 $480,871,256 $528,052,836 Refund Timing - Itemized($525,994)($24,116,784)($131,498)($6,029,196)Standard Refund Claim($96,218,490)($144,327,735)Weight Limit Removal($11,444,258)($76,295,053)($15,259,011)($101,726,737)Net MFTF 2021$232,489,415 $155,843,225 $321,153,011 $275,969,168 Total State Impact($16,737,721)($101,994,550)($30,457,321)($110,095,938)
Local Funds CART - diversion out($40,881,379)($42,296,826)($57,704,551)($63,366,340)Other - diversion out($51,101,724)($52,871,033)($72,130,688)($79,207,925)Total Local Impact($91,983,102)($95,167,859)($129,835,239)($142,574,266) Table 10: Summary (cont.) FY 2027Fully ImplementedState FundsLowHighLowHighGeneral Revenue - Refund DeductionUp to ($600,744)Up to ($640,793)Up to ($600,744)State Road Fund - Diversion Out($342,233,391)($385,286,583)($342,233,391)($385,286,583) Motor Fuel Tax Fund of 2021 Diversion in$468,812,864 $527,789,839 $468,812,864 $527,789,839 Refund Timing - Itemized$0 $0 $0 $0 Standard Refund Claim($192,436,980)($240,546,225)Weight Limit Removal($19,073,763)($127,158,422)($19,073,763)($127,158,422)Net MFTF 2021$257,302,121 $208,194,437 $209,192,876 $160,085,192 Total State Impact($85,532,014)($177,732,938)($133,641,259)($225,802,134)
Local Funds CART - diversion out($56,257,544)($63,334,781)($56,257,544)($63,334,781)Other - diversion out($70,321,930)($79,168,476)($70,321,930)($79,168,476)Total Local Impact($126,579,473)($142,503,257)($126,579,473)($142,503,257) L.R. No. 3316H.02C
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Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by DOR. Oversight will reflect the programming costs and mobile
application costs to DOR.
Oversight assumes DOR is provided with core funding to handle a certain amount of activity
each year. Oversight assumes DOR could absorb the FTE costs related to this proposal. If
multiple bills pass which require additional staffing and duties at substantial costs, DOR could
request funding through the appropriation process.
Officials from the Office of Administration - Budget and Planning (B&P) assume the
following regarding this proposal:
Section 142.803.3 – Apportionment
Beginning August 28, 2024, this proposal would change how the additional motor fuel tax
(Section 142.803.3) is distributed. Currently all motor fuel tax collections are distributed
between the State Road Fund (74.2%), Counties (10.8%), and Cities (15%).
B&P notes that Article IV, Section 30(a) dictates how motor fuel tax collections shall be
apportioned and distributed amount the state, counties, and cities. B&P is unsure whether a
change in statute, rather than a constitutional change, would be sufficient to change the
apportionment and distribution.
Section 142.803.3 created an additional motor fuel tax of up to $0.125 per gallon. This fuel tax
is currently being phased in at $0.025 per year. For FY 2024, the additional fuel tax is $0.075.
The tax increase will be fully phased in on July 1, 2026.
Section 142.803.3 would change the apportionment and distribution for any of the additional fuel
tax collected over $550 million. The $550 million shall be adjusted annually for inflation. B&P
notes that this proposal does not specify which inflation measure should be used, when the
adjustment should begin, or what base year should be used.
Collections that exceed the limit shall be distributed:
• 30% counties based on road mileage
• 30% counties based on rural land values
• 20% counties base on agriculture land acreage
• 10% St. Louis City
• 10% Kansas City
B&P notes that at the $550 million threshold and a tax rate of $0.10 (FY 2025, Section
142.803.3), a total of 5.5 billion gallons of motor fuel would need to be sold. Assuming a 2%
inflation rate, the threshold for FY 2026 would be $561 million. At a tax rate of $0.125, a total
of 4.49 billion gallons of motor fuel would need to be sold. L.R. No. 3316H.02C
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B&P further notes that there has never been that many gallons of fuel sold in Missouri. In
addition, as the $550 million threshold increases with inflation, the number of equivalent gallons
sold would also increase. Table 1 shows future potential threshold limits and required gallons.
Table 1: Required Number of Gallons SoldFiscal
Year
Diversion
Threshold
Tax
Rate
# Gallons
Sold
FY25$550,000,000 $0.100 5,500,000,000FY26$561,000,000 $0.125 4,488,000,000FY27$572,220,000 $0.125 4,577,760,000FY28$583,664,400 $0.125 4,669,315,200FY29$595,337,688 $0.125 4,762,701,504
*Assumes 2% annual inflation.
Table 2 shows the historical number gallons sold over the past nine years. The highest number
of gallons sold was 4.3 billion in FY 2022. The next highest amount was 4.30 billion in FY
2016. With the average number of gallons sold per year at 4.2 billion.
Table 2: Historic Number
of Gallons Sold
Fiscal
Year
# Gallons
Sold
FY154,121,944,179 FY164,306,559,928 FY174,205,910,901 FY184,293,622,003 FY194,218,913,843 FY204,110,124,970 FY214,132,116,076 FY224,323,936,974 FY234,232,838,592
Therefore, B&P is unsure whether the proposed apportionment and distribution would ever
trigger. However, for every $1 million over the threshold, B&P estimates that this proposal
could increase funding to counties by $692,105 and cities by $50,000, while reducing revenues
to the State Road Fund by $742,105. L.R. No. 3316H.02C
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Section 142.803 – Additional Fuel Tax Diversion
This proposal would divert the additional motor fuel tax levied under Section 142.803.3 to a
newly created “Motor Fuel Tax Fund of 2021”. B&P notes that per Article IV, Section 30(a) all
motor fuel taxes are distributed to cities, counties, and the State Road Fund.
For the purpose of this fiscal note, B&P will show the impacts of diverting revenues to the new
fund. However, B&P is unsure if this proposal would violate Article IV, Section 30(a). B&P
also notes that this proposal would divert all of the additional motor fuel tax revenue, including
revenues that would have been distributed to local jurisdictions.
This proposal would begin August 28, 2024. B&P notes that motor fuel tax returns are due the
second working day of the month (September 3, 2024). Meanwhile, this proposal would require
all refund claims under Section 142.822 shall be paid out of the new fund. B&P notes that
refund claims for the FY 2023 fuel tax are due between July 1, 2024 and September 30, 2024.
This proposal would begin in the middle of refund processing. Therefore, it is quite likely that
DOR will be unable to process refund claims for at least two weeks, until the new fund has
enough cash to cover refund claims.
In addition, refund claims processed between August 28, 2024 and September 30, 2024 will be
taken from the new fund, whereas the original revenue was deposited into other state and local
funds.
Based on updated collections and refund data, B&P estimates that this proposal could reduce
funding to the State Road Fund by $340,678,157 to $352,473,552 in FY 2025. This proposal
could also reduce local funding by $91,983,102 to $95,167,859 in FY 2025. Once SB 262
(2021) fully implements (FY 2027), this proposal could reduce revenues to the State Highway
Fund by $342,233,391 to $385,286,583 annually. This could also reduce local revenues by
$126,579,473 to $142,503,257 annually. Table 1 shows the estimated impact by fund.
Table 1: Estimated Impact from Diverting Additional Fuel Tax by Fund FY 2025FY 2026State FundsLowHighLowHighMFTF 2021 - diversion in$340,678,157 $352,473,552 $480,871,256 $528,052,836 State Road Fund - diversion out($248,695,055)($257,305,693)($351,036,017)($385,478,570)Total State Impact$91,983,102 $95,167,859 $129,835,239 $142,574,266 Local Funds CART - diversion out($40,881,379)($42,296,826)($57,704,551)($63,366,340)Other - diversion out($51,101,724)($52,871,033)($72,130,688)($79,207,925)Total Local Impact($91,983,102)($95,167,859)($129,835,239)($142,574,266) L.R. No. 3316H.02C
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Table 1: Estimated Impact from Diverting Additional Fuel Tax by Fund (cont.) FY 2027 State FundsLowHighMFTF 2021 - diversion in$468,812,864 $527,789,839 State Road Fund - diversion out($342,233,391)($385,286,583)Total State Impact$126,579,473 $142,503,257 Local Funds CART - diversion out($56,257,544)($63,334,781)Other - diversion out($70,321,930)($79,168,476)Total Local Impact($126,579,473)($142,503,257)
Donation of Motor Fuel Tax Refund (Sections 142.815, 142.822, and 142.824)
Non-Highway Use Motor Fuel Tax Exemption and Refund
Sections 142.815 and 142.824 would allow taxpayers to donate their motor fuel tax refund, for
non-highway use, to a non-profit entity beginning October 2024. B&P notes that the information
requirements are not changed under this proposal, only who would receive the refund.
Section 142.815 would grant taxpayers a deduction for any refund claims they donated to
charity. B&P notes that such taxpayer would only be allowed to claim the deduction in this
section if they did not take the charitable deduction on their itemized federal and state income tax
returns.
In FY 2023, total non-highway use refund claims were $9,954,686. Based on the prevailing fuel
tax rates, B&P estimates that refund claims were made for 45,282,564 gallons.
B&P notes that under SB 262 (2021), the motor fuel tax is scheduled to increase by $0.025 per
year, for five years, until the total motor fuel tax is $0.295. Accounting for the increases
scheduled to occur under SB 262 (2021), B&P estimates that total non-highway use refund
claims could total $13,349,859 by fiscal year 2026. Table 2 shows the estimated amount of non-
highway related motor fuel tax refunds through the implementation of SB 262 (2021).
Table 2: Estimated
Refunds by YearFiscal
Year
Non-
Highway Use
Refunds
2024$11,085,051 2025$12,219,494 2026$13,349,859 2027$13,349,859 L.R. No. 3316H.02C
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B&P is unable to determine how many non-highway use refund claims may be donated to a non-
profit entity. Therefore, B&P will reflect the loss as “up to” the total amount claimed. B&P
notes that deductions do not reduce revenues on a dollar-for-dollar basis, but rather in proportion
to the top tax rate applied. Therefore, B&P will show the estimated impacts throughout the
implementation of the tax rate reductions from SB 3 (2022).
Therefore, B&P estimates that this proposal could reduce Total State Revenue (TSR) and
General Revenue (GR) by up to $532,082 in FY 2025 (tax year 2024, top tax rate 4.8%). Once
SB 3 (2022) and SB 262 (2021) fully implement, this proposal could reduce TSR and GR by up
to $600,744 annually. Table 3 shows the estimated impact by top tax rate and year.
Table 3: Estimated Revenue Loss by Fiscal Year
Tax Year (Fiscal Year)
Tax
Rate
2024
(FY25)
2025
(FY26)
2026
(FY27)
2027 (FY
28)
4.80%($532,082)($586,536)($640,793)($640,793)4.70% ($574,316)($627,443)($627,443)4.60% ($614,093)($614,093)4.50% ($600,744)
Section 142.822 – Increased Motor Fuel Tax Refund
Section 142.822 would allow taxpayers to donate their motor fuel tax refund, for the additional
motor fuel tax, to a non-profit entity beginning October 2024. B&P notes that the information
requirements are not changed under this proposal, only who would receive the refund. B&P
further notes that taxpayers are not granted an additional income tax deduction for any refunds
donated. However, individuals could claim the donated refunds on their itemized federal and
state income tax returns, under the existing charitable contribution itemized deduction. In
addition, it is unknown if the ability to donate the fuel tax refund would encourage more refund
claims than what would have otherwise occurred.
Therefore, B&P estimates that this provision could have an unknown negative impact on TSR
and GR through potential charitable itemized deductions. This provision could also reduce the
Motor Fuel Tax Fund of 2021, through increased motor fuel tax refund claims.
Information Required for Motor Fuel Tax Refund (Section 142.822)
This proposal removes certain requirements currently necessary in order to claim the additional
motor fuel tax under §142.803.3. Taxpayers would no longer be required to provide the vehicle
identification number and seller’s name and address. L.R. No. 3316H.02C
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B&P notes that the estimates provided for SB 262 (2021) included the possibility that 100% of
qualifying purchases were refunded. Therefore, while this provision makes it easier to claim the
motor fuel tax refunds, no additional revenue loss is expected beyond what B&P originally
estimated.
Motor Fuel Tax Refunds – Timing and Method (Section 142.822)
This proposal would allow individuals to either claim an itemized (receipts required) or standard
(no receipts required) motor fuel tax rebate refund. B&P notes that individuals cannot claim
both and the total amount of refunds granted cannot exceed the amount of revenues generated
under Section 142.803. In addition, all refund claims must be paid from the Motor Fuel Tax
Fund of 2021, created under Section 142.803.
Itemized Motor Fuel Refunds
This proposal would change the timing for motor fuel tax refund claims for the additional fuel
tax passed in SB 262 (2021). Currently, motor fuel tax refund claims must be made on a fiscal
year basis (July through June motor fuel tax purchases) and refund claims must be made between
July1 and September 30 of the following fiscal year.
This proposal would change the refund claims to tax year (January through December) with
claims to be made from January 15 through April 15 of the tax year following the year in which
the motor fuel purchases were made. Table 4 shows the change in the refund due date depending
on when the motor fuel is purchased.
Table 4: Timing of Refund ClaimsCurrent Refund TimingProposed Refund Timing
Date of Purchase
Fuel
Tax
Rate
Date
Fiscal
YearDate
Fiscal
Year
7/2023 - 12/2023$0.075 7/2024 - 9/2024FY 20251/2024 - 4/2024FY 20251/2024 - 6/2024$0.075 7/2024 - 9/2024FY 20251/2025 - 4/2025FY 20257/2024 - 12/2024$0.100 7/2025 - 9/2025FY 20261/2025 - 4/2025FY 20251/2025 - 6/2025$0.100 7/2025 - 9/2025FY 20261/2026 - 4/2026FY 20267/2025 - 12/2025$0.125 7/2026 - 9/2026FY 20271/2026 - 4/2026FY 20261/2026 - 6/2026$0.125 7/2026 - 9/2026FY 20271/2027 - 4/2027FY 20277/2026 - 12/2026$0.125 7/2027 - 9/2027FY 20281/2027 - 4/2027FY 2027
B&P notes that this proposal would not change the number of taxpayers that qualify for the
motor fuel tax refund, only the timing of the refund claims. Therefore, this proposal will not
result in additional gains or losses beyond those already estimated in the TAFP fiscal note for SB
262 (2021). L.R. No. 3316H.02C
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The second round of refund claims was received between July 2023 and September 2023. B&P
notes that the $0.05 increase in the fuel tax during FY 2023 generated refund claims of $692,396.
Using the number of gallons sold, B&P estimates that the additional tax generated $211,641,930
in motor fuel revenue. Therefore, B&P estimates that highway use refund claims were
approximately 0.33% ($692,396 / $211,641,930) of the additional fuel tax revenue.
However, as the fuel tax increases over the remaining years, it is likely that fuel tax refunds will
also increase. Therefore, based on this new information, B&P has updated the refund estimates
for SB 262 (2021). B&P will show refund claims ranging between 0.33% and 15% of the
additional revenue generated.
While this proposal will not increase the overall number of refunds, this proposal will have a
cash flow impact in FY 2025 and FY 2026 for the Motor Fuel Tax Fund of 2021. Using updated
refund estimates for SB 262 (2021), B&P estimates that this proposal could increase refunds by
$525,994 to $24,116,784 in FY 2025, depending on the number of qualifying taxpayers that
make refund claims. In FY 2026, refund claims may increase by $131,498 to $6,029,196. There
will no longer be a cash flow impact by FY 2027.
Standard Income Tax Refunds
This proposal would allow taxpayers to take a standard refund, rather than the itemized receipt
required rebate beginning with tax year 2024. The standard refund would be claimed at the time
an individual files their annual tax return. Table 5 shows the amounts of the standard refund by
tax year.
Table 5: Standard
Refund Amount
Tax YearRefund2024$30 2025$45 2026$60 2027$75
B&P notes that in tax year 2021, there were 3,207,283 Missouri individual income tax returns
filed. Assuming individuals who currently itemize their fuel tax returns continue to do so, B&P
estimates that the standard refund may be claimed on 3,207,283 (3,207,283 income tax returns –
10,526 itemized returns). Table 6 shows the estimated income tax claims per year. L.R. No. 3316H.02C
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Table 6: Income Tax Claims by
Year
Tax
Year
Fiscal
YearRefund Claim
20242025($96,218,490)20252026($144,327,735)20262027($192,436,980)20272028($240,546,225)
Summary
B&P estimates that these provisions could increase refunds from the Motor Fuel Tax Fund of
2021 by $96,744,484 to $120,335,274 in FY 2025, depending on the number of qualifying
taxpayers that make refund claims. Once SB 262 (2021) fully implements, this proposal could
increase refund claims from the Motor Fuel Tax Fund of 2021 by $240,546,225 annually.
Table 7: Standard and Itemized Refund Impacts FY 2025FY 2026 LowHighLowHighStandard Refund($96,218,490)($144,327,735)Receipt Refund($525,994)($24,116,784)($131,498)($6,029,196)Total($96,744,484)($120,335,274)($144,459,233)($150,356,931)Table 7: Standard and Itemized Refund Impacts (cont.) FY 2027FY 2028 LowHighLowHighStandard Refund($192,436,980)($240,546,225)Receipt Refund$0 $0 $0 $0 Total($192,436,980)($192,436,980)($240,546,225)($240,546,225)
Rebate Weight Limit Change (Section 142.822)
This proposal would allow motor fuel tax refund claims on fuel purchased for vehicles heavier
than 26,000 pounds.
B&P notes that this proposal would become effective August 28, 2024, which is during the
motor fuel refund request window of July 1, 2024 through September 30, 2024 for fuel tax
purchases between July 2023 and June 2024. For the purpose of this fiscal note, B&P will
assume that refund claims will increase from the repeal of Section 142.822.6 during the FY 2025
refund claim period. However, B&P acknowledges that not all newly qualifying taxpayers
would have kept their fuel receipts because they do not qualify under current law. L.R. No. 3316H.02C
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B&P further notes that for the TAFP SB 262 (2021) fiscal note, B&P assumed that the amount of
refunds would range between 15% and 100% of all qualified taxpayers, whose vehicles weighed
less than 26,000 pounds. Therefore, under this proposal, B&P assumes that refund claims will
still range between 15% and 100%; however, the number of qualifying vehicles would increase
with the removal of the weight limit. In addition, B&P notes that heavier vehicles tend to use
more motor fuel than lighter vehicles, which may incentivize a higher uptake in refund claims.
Using FY 2023 motor fuel tax collections, B&P estimates that there were 4,232,838,592 gallons
of gasoline and diesel purchased during FY 2023. B&P then updated the TAFP SB 262 (2021)
fiscal estimates for both revenues and potential refunds, under current law, using the newer
gallons sold data. B&P then determined the amount of refunds that could remain after
accounting for all currently qualifying vehicles. Table 8 shows the updated revenue and refund
estimates.
Table 8: Estimated Additional Refunds FY 2025FY 2026FY 2027Estimated Collections (prior FY)$317,462,894 $423,283,859 $529,104,824 Estimated Current 100% Potential Refunds-$241,167,841 $321,557,122 $401,946,402 Remaining Collections (for non-qualifying MVs)$76,295,053 $101,726,737 $127,158,422 Estimated Low Additional Refund (15%) ($11,444,258)($15,259,011)($19,073,763)Estimated High Additional Refund (100%) ($76,295,053)($101,726,737)($127,158,422) Estimated Refunds for every 1% uptake ($762,951)($1,017,267)($1,271,584)Estimated Refunds for every 5% uptake ($3,814,753)($5,086,337)($6,357,921)
Therefore, B&P estimates that this proposal could increase motor fuel tax refunds by
$11,444,258 to $76,295,053 in FY 2025. Once fully implemented, this proposal could increase
motor fuel tax refunds by $19,073,763 to $127,158,422 annually.
However, as noted before, it is unknown how many additional refund claims will be made. B&P
estimates that every 5% increase in refund claims could increase refund amounts by $6,357,921
once fully implemented.
Table 9: Estimated Impact FY 2025FY 2026FY 2027State FundLow (15%)High (100%)Low (15%)High (100%)Low (15%)High (100%)Motor Fuel Tax
Fund of 2021($11,444,258)($76,295,053)($15,259,011)($101,726,737)($19,073,763)($127,158,422) L.R. No. 3316H.02C
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Mobile Rebate Application (Section 142.822)
Section 142.822.9 requires DOR to develop a mobile application that allows users to submit a
refund claim at the time of fuel purchase, rather than making an annual claim for all purchases at
once. B&P notes that if refund claims are made at the time of purchase, rather than on an annual
basis, this could result in a cash flow impact where refunds that would have been claimed in year
2 are now claimed in year 1.
While this provision will not increase the overall number of refunds, it could have a cash flow
impact in FY 2025 through FY 2026 for all state and local fuel tax funds by moving some motor
fuel refund claims into an earlier fiscal year. However, there will no longer be a cash flow
impact by FY 2027, once SB 262 (2021) has fully implemented.
B&P defers to DOR for the costs to develop and maintain a mobile application.
Bill Summary
B&P estimates that this proposal could decrease state revenues by $16,737,721 to $101,994,550
and local funds by $91,983,102 to $65,167,859 in FY 2025. Once SB 3(2022) and SB 262
(2021) have fully implemented, this proposal may decrease state revenues by $133,641,259 to
$225,802,134 and local revenues by $126,579,473 to $142,503,257. Table 10 shows the
estimated impact by fiscal year.
Table 10: Summary FY 2025FY 2026State FundsLowHighLowHighGeneral Revenue - Refund DeductionUp to ($532,082)Up to ($574,316)Up to ($583,536)State Road Fund - Diversion Out($248,695,055)($257,305,693)($351,036,017)($385,478,570) Motor Fuel Tax Fund of 2021 Diversion in$340,678,157 $352,473,552 $480,871,256 $528,052,836 Refund Timing - Itemized($525,994)($24,116,784)($131,498)($6,029,196)Standard Refund Claim($96,218,490)($144,327,735)Weight Limit Removal($11,444,258)($76,295,053)($15,259,011)($101,726,737)Net MFTF 2021$232,489,415 $155,843,225 $321,153,011 $275,969,168 Total State Impact($16,737,721)($101,994,550)($30,457,321)($110,095,938)
Local Funds CART - diversion out($40,881,379)($42,296,826)($57,704,551)($63,366,340)Other - diversion out($51,101,724)($52,871,033)($72,130,688)($79,207,925)Total Local Impact($91,983,102)($95,167,859)($129,835,239)($142,574,266) L.R. No. 3316H.02C
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Table 10: Summary (cont.) FY 2027Fully ImplementedState FundsLowHighLowHighGeneral Revenue - Refund DeductionUp to ($600,744)Up to ($640,793)Up to ($600,744)State Road Fund - Diversion Out($342,233,391)($385,286,583)($342,233,391)($385,286,583) Motor Fuel Tax Fund of 2021 Diversion in$468,812,864 $527,789,839 $468,812,864 $527,789,839 Refund Timing - Itemized$0 $0 $0 $0 Standard Refund Claim($192,436,980)($240,546,225)Weight Limit Removal($19,073,763)($127,158,422)($19,073,763)($127,158,422)Net MFTF 2021$257,302,121 $208,194,437 $209,192,876 $160,085,192 Total State Impact($85,532,014)($177,732,938)($133,641,259)($225,802,134)
Local Funds CART - diversion out($56,257,544)($63,334,781)($56,257,544)($63,334,781)Other - diversion out($70,321,930)($79,168,476)($70,321,930)($79,168,476)Total Local Impact($126,579,473)($142,503,257)($126,579,473)($142,503,257)
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by B&P.
Officials from the Missouri Department of Transportation (MoDOT) assume the expansion
of the motor fuel tax refund to Missouri based motor vehicles that exceed 26,000 pounds (and as
such are legally required to be licensed under the International Fuel Tax Agreement (IFTA))
would create a very large negative fiscal impact. Given the administrative complexities of this
tax program, it is difficult to project or quantify the actual amount of revenue potentially at risk.
As a composite, Missouri currently has approximately 65,000 power units subject to IFTA
taxation. In calendar year 2022, these operators traveled 1.2B miles in Missouri. Factoring an
estimated 5 miles-per-gallon performance, the data indicates that approximately 240M taxable
gallons would be made eligible for refund under this provision. This does not include other
eligible power units that are not subject to IFTA such as tractor-trailers that do not leave the
state, dump trucks, local delivery straight trucks, and smaller delivery vehicles.
The IFTA program takes into account miles traveled and gallons purchased, regardless of the
state of purchase, and calculates consumption based on a quarterly fuel economy performance
when determining a motor carrier’s fuel tax obligation. It does not matter which state the fuel
was actually purchased in as the MPG factor is used to determine consumption and thereby, tax
owed. There are many carriers who travel through the state and never purchase fuel in Missouri.
Through IFTA, Missouri collects the apportioned amount of fuel tax due which would have
otherwise been paid at the pump had they fueled in Missouri. L.R. No. 3316H.02C
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The reverse is also true in that every gallon purchased in Missouri but consumed in another state
is subject to additional taxation under IFTA to collect those lost tax revenues for the jurisdiction
traveled in. It is unclear if the language “delivered into a motor vehicle” is intended to apply to
fuel purchased in Missouri, consumed in Missouri, or both.
Because IFTA is administered by MoDOT’s Motor Carrier Services Division and the fuel tax
rebates are issued by the Department of Revenue, refunds could be issued more than once. The
easing of reporting information for a refund would not satisfy the audit requirements for IFTA.
Likewise, IFTA tax returns can be amended for up to 4 years after the date of filing. This could
result in large overages being reported and refunded, only to be amended years later. There
would be little opportunity for fund recovery in these situations. The nature of the refund
provision would become very inviting to fraud and would require the addition of many auditors
for oversight.
Allowing only Missouri-based carriers to be eligible for refunds for motor vehicles over 26,000
pounds may create an unfair interstate commerce practice.
MoDOT defers to DOR for the fiscal impacted expected from motor fuel tax refunds on this
provision and the other portions of the bill.
Officials from the Missouri Highway Patrol and Office of the State Treasurer each assume
the proposal will have no fiscal impact on their respective organizations. Oversight does not
have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal
note for these agencies.
In response to a similar proposal from 2024 (HB 2649), officials from the City of Kansas City
assumed the proposed legislation had a potential positive fiscal impact of an indeterminate
amount.
FISCAL IMPACT –
State Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
GENERAL
REVENUE FUND
Cost – DOR –
programming
changes for various
sections p. 5, 6, 8, 9($29,631)$0$0$0 L.R. No. 3316H.02C
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FISCAL IMPACT –
State Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
Cost – DOR –
mobile application
for motor fuel tax
refunds
(§142.815.10) p. 11($500,000)$0$0$0
Loss – decrease in
state taxes paid due
to the ability to
donate motor fuel
tax refunds to
charity and claim as
a deduction on state
taxes (§§142.815,
142.822 & 142.824)
p. 6, 17
Up to
($532,082)
Up to
($574,316)
Up to
($627,443)
Up to
($627,443)
Loss – decrease in
state taxes received
due to charitable
contributions
(§142.822) p. 6, 17
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET
EFFECT ON THE
GENERAL
REVENUE FUND
Could exceed
($1,061,713)
Could exceed
($574,316)
Could exceed
($627,443)
Could exceed
($627,443)
MOTOR FUEL
TAX FUND OF
2021
Revenue – diversion
from the State Road
Fund/Cities/Counties
(§142.803) p. 4, 15-
16
$340,678,157
to
$352,473,552
$480,871,256
to
$528,052,836
$468,812,864
to
$527,789,839
$468,812,864
to
$527,789,839 L.R. No. 3316H.02C
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FISCAL IMPACT –
State Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
Cash Flow – timing
of the motor fuel tax
refunds – moved up
to CY instead of FY
(§142.822) p. 7, 18
($525,994 to
$24,116,784)
($131,498 to
$6,029,196)$0$0
Loss – increase in
refunds due to using
standard vs. itemized
(§142.822) p. 8-9,
18-20($96,218,490)($144,327,735)($192,436,980)($240,546,225)
Loss – increased
motor fuel tax
refunds due to the
elimination of the
weight limit for
vehicles to claim
refunds (§142.822)
p. 10-11, 20-22
($11,444,258 to
$76,295,053)
($15,259,011 to
$101,726,737)
($19,073,763 to
$127,158,422)
($19,073,763 to
$127,158,422)
ESTIMATED NET
EFFECT ON THE
MOTOR FUEL
TAX FUND OF
2021
$155,843,225
to
$232,489,415
$275,969,168
to
$321,153,012
$208,194,437
to
$257,302,121
$160,085,192
to
$209,192,876
STATE ROAD
FUND
Loss - diversion
from the State Road
Fund/Cities/Counties
(§142.803) p. 4, 15-
16
($248,695,055
to
$257,305,693)
($351,036,017
to
$385,478,570)
($342,233,391
to
$385,286,583)
($342,233,391
to
$385,286,583) L.R. No. 3316H.02C
Bill No. HCS for HB 2072
Page 27 of 28
March 13, 2024
KB:LR:OD
FISCAL IMPACT –
State Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
Loss – motor fuel
tax proceeds over
$550 million (per
year) distributed to
cities and counties
(§142.803) p. 4-5,
13-14 $0 $0
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET
EFFECT ON THE
STATE ROAD
FUND
($248,695,055
to
$257,305,693)
($351,036,017
to
$385,478,570)
Could exceed
($342,233,391
to
$385,286,583)
Could exceed
($342,233,391
to
$385,286,583)
FISCAL IMPACT –
Local Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
LOCAL
POLITICAL
SUBDIVISIONS
Revenue – motor
fuel tax proceeds
over $550 million
(per year) distributed
cities (2) and
counties (§142.803)
p. 4-5, 13-14$0 $0 $0 or Unknown$0 or Unknown
Loss - diversion
from the State Road
Fund/Cities/Counties
(§142.803) p. 4, 15-
16
($91,983,102 to
$95,167,859)
($129,835,239
to
$142,574,266)
($126,579,473
to
$142,503,257)
($126,579,473
to
$142,503,257) L.R. No. 3316H.02C
Bill No. HCS for HB 2072
Page 28 of 28
March 13, 2024
KB:LR:OD
FISCAL IMPACT –
Local Government
FY 2025
(10 Mo.)
FY 2026FY 2027Fully
Implemented
(FY 2028)
ESTIMATED NET
EFFECT ON
LOCAL
POLITICAL
SUBDIVISIONS
($91,983,102 to
$95,167,859)
($129,835,239
to
$142,574,266)
Could be less
than
($126,579,473
to
$142,503,257)
Could be less
than
($126,579,473
to
$142,503,257)
FISCAL IMPACT – Small Business
Small businesses that purchase motor fuel could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This proposal modifies provisions relating to the motor fuel tax exemption.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Missouri Highway Patrol
Missouri Department of Transportation
City of Kansas City
Office of the State Treasurer
Julie MorffRoss StropeDirectorAssistant DirectorMarch 13, 2024March 13, 2024