Missouri Senate Bill SB775

Missouri 2025 Regular Session

• Introduced: 2/25/25
• Refer: 3/27/25

Caption

Repeals a portion of the tax on motor fuel, and specifies an expiration date for the exemption and refund process applicable to that portion

Impact

The amendments to the tax code will have significant implications for the state's revenue mechanisms and the regulation of fuel taxation. By simplifying tax calculations for alternative fuel, the bill may incentivize the increased use of cleaner energy sources, indirectly promoting environmental sustainability. The repeal of the old tax provisions and their replacement with clearer and updated sections could enhance compliance and ease the burden on consumers and businesses navigating the tax landscape.

Summary

Senate Bill 775 proposes to repeal specific sections of Missouri statutes concerning the taxation of motor fuel. The bill seeks to establish a new framework for imposing taxes on various fuel types used in the state, including motor fuel, alternative fuels, aviation fuel, and natural gas. It standardizes tax rates, which are set at seventeen cents per gallon for motor fuel, with specific provisions for alternative fuels based on their energy equivalency to gasoline. The changes are aimed at streamlining fuel taxation and potentially making alternative energy sources more competitive in the market.

Contention

While the bill has clear objectives, it is not without controversy. Critics may argue that it could disadvantage some fuel types and impact the competitive landscape among fuel distributors. Furthermore, concerns might arise related to the projected fiscal impact of these tax changes on state revenues. There is also potential contention surrounding the extent of exemptions and the requirements for claiming refunds, which could place additional administrative burdens on consumers and businesses.

Expiration

The new tax provisions include an expiration date for various exemptions and refund processes, creating a time-limited framework that may raise discussions about long-term tax policy stability. The bill contains an emergency clause, suggesting a sense of urgency to address immediate needs arising from high motor fuel costs, thus making swift legislative action critical to the bill's proponents.