Bill > HB3539

This bill modifies provisions related to motor fuel tax exemptions, specifically for fuel used to propel motor vehicles on highways. Currently, such fuel is subject to a fuel tax collected under section 142.803, but this bill allows for an exemption and refund if the tax has been paid. The key change is a transition in how these exemptions and refunds are processed: through fiscal year 2026, they will be issued on a fiscal year basis, meaning taxpayers will claim them based on the fuel tax paid and collected up to the end of that fiscal year. However, beginning in fiscal year 2027, the process shifts to a tax year basis. For the period of July 1, 2026, to December 31, 2026, taxes collected will be reported under a specific subsection, and from January 1, 2027, onwards, taxes will be reported annually. Taxpayers will have two options to claim exemptions and refunds starting in fiscal year 2027: a receipt-based claim requiring detailed documentation of fuel purchases and taxes paid, or a standard refund option that allows a set, flat amount to be claimed as an immediate refund or a credit against income tax liability, with the amount increasing annually from $30 in 2026 to $75 for tax years beginning in 2029. The bill also outlines record-keeping requirements, audit provisions, interest on delayed refunds, and specifies that these exemptions and refunds apply only to motor fuel delivered into vehicles with a gross weight of 26,000 pounds or less.