Repeals a portion of the tax on motor fuel, and the exemption and refund process applicable to that portion
Impact
With the modification of the motor fuel tax provisions, SB953 intends to streamline the taxation process by eliminating certain exemptions related to fuel used in motor vehicles. The proposed changes will impact the way taxes are collected and refunded for motor fuel consumers by requiring a more straightforward process for tax exemption claims. The essence of the bill is to ensure that all fuels are taxed uniformly to enhance state revenue while deploying simplified guidelines for consumers who might claim exemptions. This could lead to a more predictable revenue stream for the state, albeit potentially raising costs for users of alternative fuel vehicles if taxes are perceived as too high.
Summary
Senate Bill 953 is a legislative proposal aimed at modifying the taxation structure related to motor fuels in Missouri. Specifically, the bill seeks to repeal sections 142.803 and 142.822 of the Revised Statutes of Missouri, thereby enacting new provisions concerning the taxation of various types of motor fuel, including conventional gasoline, alternative fuels, aviation fuel, and natural gas. The bill establishes specific tax rates for these fuels, aiming to simplify the tax structure while ensuring state revenue is maintained from fuel consumption. It establishes a tax on motor fuel at seventeen cents per gallon, while alternative fuels will have their rates assessed based on their energy equivalency to gasoline.
Contention
The discussion surrounding SB953 may revolve around its implications for consumers, particularly those relying on alternative energy sources. Critics of the bill may argue that increasing taxes on fuels could burden low-income individuals or those dependent on alternative fuels, potentially discouraging their use. Additionally, there are concerns about the removal of tax exemption processes; opponents might highlight that these changes could lead to financial strain on sectors that benefit from discounted fuel prices, especially for businesses and transportation services reliant on lower fuel costs to remain competitive. This delicate balance between maintaining revenue streams for the state and supporting consumers and businesses remains a central point of contention.