Bill > HB351

This bill clarifies the point of taxation for gasoline and special fuels taxes in Montana by modifying existing statutes to specify exactly when and how fuel taxes are to be collected. The bill defines the point of taxation as occurring when a licensed distributor withdraws gasoline, special fuel, or aviation fuel from a refinery or terminal, or when imported fuel arrives and comes to rest in the state. Specifically, the tax will be levied on the first licensed distributor who owns the fuel at the time of withdrawal or arrival, with provisions preventing tax-free exchanges between distributors more than once. The bill updates definitions related to fuel distribution, including terms like "distributed," "distributor," and "import," and maintains the current tax rates of 33 cents per gallon for gasoline, 29.75 cents per gallon for special fuel, and 5 cents per gallon for aviation fuel. The changes aim to provide more clarity and precision in how fuel taxes are assessed and collected, ensuring that the appropriate party is responsible for tax payment at the correct point in the fuel distribution process. The bill will take effect on July 1, 2026, giving distributors and state agencies time to prepare for the new taxation guidelines.

Transportation and Infrastructure

https://bills.legmt.gov/#/laws/bill/2/LC1516