Repeals a portion of the tax on motor fuel, and specifies an expiration date for the exemption and refund process applicable to that portion
The passage of SB494 would significantly revise how motor fuel taxes are administered in Missouri, particularly impacting people and businesses that utilize alternative fuels. It establishes a framework for taxing CNG and LNG at rates incrementally increasing from five cents to eventually seventeen cents per gasoline gallon equivalent by 2025. Additionally, it provides guidance on the administration, collection, and enforcement of these taxes, which suggests a more structured approach towards alternative fuel taxation. This could potentially encourage cleaner energy usage among consumers and businesses alike.
Senate Bill 494 seeks to repeal and replace certain provisions of existing Missouri law regarding the taxation of motor fuels. The bill introduces new tax rates for various types of fuels including motor fuels, aviation fuels, compressed natural gas (CNG), liquefied natural gas (LNG), and propane gas. For instance, the tax on general motor fuel is set at seventeen cents per gallon, while specific rates are established for alternative fuels based on their power potential equivalent. Notably, the bill includes detailed provisions on how to assess these alternative fuels when they are not commonly sold by gallon.
While the bill aims to modernize fuel taxation and potentially support and incentivize a shift to alternative fuels, it could also meet resistance from those who view increased taxes on any fuel types as detrimental. Some stakeholders might argue that raising fuel taxes, even for the purpose of environmental sustainability, places additional financial burdens on consumers and transport services. Furthermore, as indicated by the emergency clause in the bill, there may be urgency to alleviate immediate fuel cost pressures, leading to debates about the balance between fiscal responsibility and rapid legislative changes.