Wisconsin Assembly Bill AB200

Wisconsin 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25

Caption

Applying the motor vehicle fuel tax supplier’s administrative allowance to diesel fuel, a motor vehicle fuel tax refund for evaporation losses, and making an appropriation. (FE)

Impact

Additionally, AB200 proposes a mechanism for retailers to claim refunds for losses incurred from evaporation and shrinkage of motor vehicle fuel stored on their premises. Retailers will be eligible to receive a refund amounting to 0.5 percent of the tax they have paid on their fuel purchases. This provision is significant as it acknowledges the challenges retailers face regarding fuel losses and aims to mitigate their financial burden, which can impact pricing strategies and profit margins.

Summary

Assembly Bill 200 aims to make amendments to the existing motor vehicle fuel tax laws in Wisconsin, particularly focusing on how the tax applies to diesel fuel. The bill introduces a provision allowing fuel suppliers to retain an administrative allowance of 1.35 percent on the first sale of diesel fuel, similar to the existing regulations for gasoline. This change aligns the treatment of diesel fuel with that of gasoline, thus providing suppliers with greater operational flexibility and consistency.

Contention

One of the notable points of contention surrounding this bill revolves around the potential fiscal implications. While the bill is designed to assist retail dealers with tax adjustments, questions may arise regarding its long-term impact on state revenue generated from fuel taxes. Lawmakers could debate whether the refund allowances for evaporation losses may lead to reduced tax collections overall. Moreover, the administrative allowances provided to suppliers may trigger discussions about fairness and the efficiency of tax allocation within the sector.