Senate Committee Substitute

SCS/SB 262 - This act enacts an additional tax on motor fuel, beginning with 2.5 cents in 2022, and increasing by 2.5 cents per year until reaching an additional 15 cents per gallon in 2027.

Motor fuel used for propelling highway vehicles shall be exempt from the additional tax, and an exemption and refund may be claimed by the taxpayer if the tax has been paid and no refund has been previously issued, provided that the taxpayer applies for the exemption and refund as provided in the act.

To claim an exemption and refund, a person shall present written verification that the claim is made under penalty of perjury, and stating the amount of fuel tax paid in the applicable calendar year for each vehicle for which the exemption and refund is claimed. The claim shall not be transferred or assigned, and shall be filed on or after January 1, but not later than April 15, following the year for which the exemption and refund is claimed. The claim shall be supported by certain documentation as provided in the act.

The Director of the Department of Revenue may investigate exemptions and refunds prior to their issuance, or following issuance but within the time frame for making tax adjustments as provided by law.

Every person shall maintain and keep records for 3 years to substantiate all claims for exemption and refund of the motor fuel tax as specified in the act. The act provides for payment of interest by the Director for exemptions and refunds not issued within 30 days of an accurate and complete filing.

The exemption and refund provided for in this act shall be available only with regard to motor fuel purchased prior to 2028.


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