Bill > HB1397

This bill modifies the motor fuel tax rates in Missouri by implementing a complex, phased tax reduction and adjustment for various fuel types. Specifically, the bill establishes different tax rates for motor fuel, alternative fuels, aviation fuel, compressed natural gas, liquefied natural gas, and propane gas. For standard motor fuel, the bill introduces a sliding scale of additional taxes: from October 1, 2021, to September 30, 2026, the tax will vary from 2.5 cents to 12.5 cents per gallon at different periods. The bill maintains the base motor fuel tax at 17 cents per gallon while adding a temporary supplemental tax that gradually changes over time. The legislation also provides detailed guidelines for calculating tax rates for alternative fuels like compressed natural gas, liquefied natural gas, and propane, using gasoline or diesel gallon equivalents. The tax is technically imposed on the ultimate consumer but is to be pre-collected by fuel providers as agents of the state. These changes aim to provide a structured approach to motor fuel taxation, with built-in variations that will affect fuel prices and potentially provide some tax relief to consumers over the specified period.

https://house.mo.gov/Bill.aspx?bill=HB1397&year=2025&code=R