HB 519 - Current law authorizes refunds for purchases of motor fuel used for tax-exempt purposes. Beginning October 1, 2023, this act authorizes a taxpayer to submit appropriate documentation to an entity exempt from taxation for federal purposes under Section 501(c)(3) of the federal tax code and authorizes such entity to claim the taxpayer's refund. Additionally, the taxpayer may deduct the amount of such refund from the taxpayer's Missouri adjusted gross income. Current law requires motor fuel tax refunds that are issued for motor fuel tax charged in excess of $0.17/gallon to be issued on a fiscal year basis. This act provides that, beginning with the 2024 fiscal year, such refunds shall be issued on a tax year basis. The act allows a taxpayer to claim such refund based on itemized receipts retained by the taxpayer, with the amount of such refund equal to the amount of motor fuel tax paid by the taxpayer during the tax year. Alternatively, the taxpayer may claim a standard refund in an amount equal to $30 for the 2023 tax year, and increasing to $75 for all tax years beginning on or after January 1, 2026, as described in the act. Such refund shall be submitted on a form with the taxpayer's income tax return and shall have such refund applied to the taxpayer's income tax liability.
Current law provides that the exemption and refund of motor fuel tax charged in excess of $0.17/gallon shall only be available for motor vehicles with a gross weight of 26,000 pounds or less. This act authorizes such exemption and refund for motor vehicles that exceed such weight if the motor vehicle is owned by a corporation licensed in Missouri with its primary headquarters in this state, or owned by a sole proprietor whose home office is located in this state.
This act requires the Department of Revenue to develop a mobile application that allows motor fuel tax refund claims to be submitted on a person's phone at the time of motor fuel purchase in lieu of the procedures authorized by the act.
This act is similar to provisions in HCS/SS/SB 23 (2023), HB 520 (2023), provisions in HB 778 (2023), HB 2654 (2022), HB 2758 (2022), and HB 2888 (2022).
ERIC VANDER WEERD