News Alerts

STATE TAX CHANGES – OCTOBER 2021

This post has been updated, due to typos corrected under California.

IRS Waives Dyed Diesel Penalty in Louisiana Following Hurricane Ida; Louisiana Department of Revenue Does the Same

Both the IRS and the Louisiana Department of Revenue have waived their penalties for dyed diesel that is sold for use or used on a highway in parts of Louisiana. The waiver goes through September 15, 2021. This penalty relief is available to any person that sells or uses dyed fuel for highway use. In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use. The IRS will not impose penalties for failure to make semimonthly deposits of this tax.

The parishes to which the waiver relates are: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge and West Feliciana.

Alabama Suspends Collection of Fuel Tax License Requirements for 30 Days Following Hurricane Ida

The Governor of Alabama today (August 30, 2021) issued an executive order suspending the license requirements for fuel importers, exporters and transporters assisting in the movement of fuel as part of Hurricane Ida relief efforts. All other provisions of the Terminal Excise Tax statues, including collection of taxes – remain in effect. The executive order expires after 30 days.

Washington Reduces Petroleum Products Tax Rate

Effective, July 1st, the Washington Petroleum Products Tax is reduced to 0.0015% ad valorem.

Missouri Enacts Additional Tax on Motor Fuel

The Missouri legislature has passed legislation imposing an additional tax on motor fuel. Effective October 1, 2021 an additional $0.025 per gallon tax will be imposed on all motor fuel used or consumed in Missouri. The rate will be increased annually from July 1, 2022 as follows:

July 1, 2022 – June 30, 2023:              $0.05 per gallon

July 1, 2023 – June 30, 2024:              $0.075 per gallon

July 1, 2024 – June 30, 2025:              $0.10 per gallon

July 1, 2025:                                           $0.12 per gallon

The legislation includes an exemption from the tax for motor fuel “used for purposes of propelling motor vehicles on highways.” The exemption is claimed by way of refund applied for on a fiscal year basis and is only available with respect to fuel placed into the fuel tank of a motor vehicle. The refund is paid to the person who paid the tax. An exemption and refund is claimed by filing a statement containing a written verification of the total tax paid for each vehicle for which the exemption and refund is claimed. The written statement must be filed between July 1 and September 30 following the fiscal year to which is relates and must include the following information: (1) VIN number of the vehicle into the which the motor fuel was delivered; (2) date of sale; (3) name and address of purchaser; (4) name and address of seller; (5) number of gallons purchased; and (6) numbers of gallons purchased and charged Missouri fuel tax as a separate line item.