News Alerts

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.

Colorado Revises Motor Fuel Tax Laws – New Provisions Effective January 1, 2022

Colorado’s legislature recently revised the motor fuel tax statute to restructure the gasoline and special fuel tax. Effective, January 1, 2022, Colorado’s motor fuel tax will collected on removals of gasoline and special fuel from a registered terminal across the terminal rack and the tax will be collected on liquefied petroleum gas when placed into the fuel tank of a vessel unless otherwise exempt. The tax is also imposed on sales, imports or removal of gasoline or special fuel by bulk transfer from or to a refinery or terminal if both parties are not properly licensed and on non-bulk imports into Colorado. The provision for three tax-deferred transactions between licensed distributors is repealed.

The legislation specifically exempts sales of jet fuel and aviation gasoline to domestic and foreign air carriers from the motor fuel tax and states that such fuel products are subject to the sales tax rules. Eligible air carriers will be issued exemption certificates by the Department of Revenue to provide to their suppliers to support the exemption. Additionally, gasoline or special fuel removed from a terminal by a licensed exporter for delivery to another state is exempt from the fuel tax.

In addition to the provisions regarding the imposition of the tax and exemptions, there are revisions to the provisions related to penalties, refunds and reporting, including that all reports must be filed electronically. Reporting related penalties will be waived for tax periods between January 1, 2022 and December 31, 2022 if the taxpayer has shown a good faith effort to comply with the changes to the law.

The full text of the legislation can be found at:

https://leg.colorado.gov/sites/default/files/documents/2021A/bills/2021a_1322_enr.pdf

Michigan Propane Tax – Effective July 1, 2021

Effective July 1, 2021, all sales of propane to Michigan propane companies or propane transported to Michigan is subject to an assessment of 1/10 of cent per gallon. Assessments should be remitted to the Michigan Propane Commission, payable to the Michigan Propane Gas Association. All payments should specify the number of gallons and companies with respect to which the assessment is paid.