Senate Substitute

SS#2/SCS/SB 262 - This act modifies provisions relating to transportation.


This act enacts an additional tax on motor fuel, beginning with 2.5 cents in October 2021, and increasing by 2.5 cents in each fiscal year until reaching an additional 12.5 cents per gallon on July 1, 2025. (Section 142.803.3).

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. (Section 142.822.1).

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 fiscal 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 July 1, but not later than September 30, following the fiscal year for which the exemption and refund is claimed. The claim may be filed electronically, and shall be supported by certain documentation as provided in the act. (Section 142.822.2).

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. (Section 142.822.3).

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. (Section 142.822.4).

The act provides for payment of interest by the Director for exemptions and refunds not issued within 45 days of an accurate and complete filing. (Section 142.822.5).

The exemption and refund of additional motor fuel tax shall be available only with regard to motor fuel delivered into a motor vehicle with a gross vehicle weight rating of 26,000 lbs or less. (Section 142.822.6).

This act also provides that the existing fuel tax exemption for non-highway use may be filed electronically, that applicants shall retain original sales slips rather than submitting them to the Department, and that refunds shall be issued within 45 days, rather than 30 days. (Sections 142.824.1, 142.824.5 and 142.824.8).

Under the act, the fees for alternative fuel decals are increased by 20% per year for a period of 5 years, except that the fee for vehicles in excess of 36,000 pounds is increased by 10% per year for a period of 5 years, and the fee for temporary decals is not modified. (Section 142.869.2).

Lastly, the act establishes within the Department of Revenue the "Electric Vehicle Task Force", with membership as specified in the act. As detailed in the act, the task force shall analyze and make recommendations regarding the impact of electric vehicle adoption on transportation funding. The task force shall deliver a written report to the General Assembly and the Governor no later than December 31, 2022. (Section 142.1000).


This act increases, from 10 years to 20 years, the maximum age of motor vehicle required to have its odometer readings recorded in certain circumstances. (Sections 301.192.1(6) and 301.280.1). A corresponding change is made with regard to odometer fraud offenses. (Sections 407.526 and 407.556.2(2)). The act also specifies that the Department of Revenue may allow electronic signatures on written powers of attorney authorizing mileage disclosures and transfers of ownership. (Section 407.536.8).

These provisions are subject to an emergency clause.

These provisions are identical to provisions in SB 370 (2021) and similar to HB 2660 (2020).


The act also enacts a lifetime ban from driving a commercial motor vehicle for any person convicted of using a commercial motor vehicle in the commission of a felony involving "severe forms of human trafficking in persons", as defined by federal law. (Section 302.755.19).

These provisions are subject to an emergency clause.

These provisions are identical to provisions in SB 370 (2021).


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