SB 301 - This act rewrites and reorganizes almost all of Chapter 142, RSMo, relating to motor fuel taxes. The main change is to move the point of collection from the distributor receiving the fuel to the "position holder" who sells the fuel across the rack at the terminal. Almost all fuel sold across the rack will be taxed. The sections relating to special fuel (mainly diesel) are either combined with the gasoline sections and appear as new language or are deleted.

IMPOSITION OF TAX - The position holder (owner of fuel) selling motor fuel across the terminal rack and into a truck is liable for paying the tax to the Department of Revenue (DOR). The tax shall be added to the price of the fuel as it is sold by the supplier to the retailer and consumer. Interstate motor fuel users, both diesel and gasoline, are liable for the fuel used by them upon the highways of this state. Current law applies only to diesel users.

EXEMPTIONS FROM TAX - Exemptions from the Missouri fuel tax are given for: (1) Exports where the destination state tax has been paid (currently not prepaid); (2) Losses due to theft, fire, etc.; (3) Fuel used by the position holder or supplier for nonhighway purposes; (4) Dyed diesel fuel (new); (5) Federal government sales (new); and (6) Fuel sold upon and used on Indian lands (new). Alternative fuel decals will continue to be used instead of the tax. Certain movers of household goods continue to be exempt from filing fuel tax reports.

LICENSES - Licenses are required for position holders, suppliers and interstate motor fuel users. Permissive position holders (outside of state) may elect to become licensed. Interstate motor fuel users will continue to be licensed.

BONDS - Bonds shall be filed by licensees for three times the average monthly tax liability, but not less than $5,000 ($500 for interstate motor fuel users). The licensee shall be released from the bond upon completing five consecutive years of tax compliance, though the bond may be reimposed if needed.

REVOCATION - A license may be revoked for failure to comply with any regulation issued under this chapter.

PAYMENT OF TAX - Both position holders and suppliers shall be subject to liens for nonpayment of fuel tax. The tax shall paid to DOR by the position holder by the 25th day of the month following the month of purchase. The suppliers shall pay the tax to the position holder at the rate of 97% on gasoline and 98% on special fuel (the position holder gets the same deduction as well as 1/10 of 1% for losses). The 1/10 of 1% deduction is new. Payments are required according to gross gallons.

Suppliers may elect to become eligible purchasers by being licensed and meeting financial responsibility and bonding requirements. Credits for uncollectible taxes shall be given by DOR to position holders where the tax and motor fuel payment cannot be collected from the supplier.

REPORTS - Position holders and suppliers shall report specified information each month. Interstate motor fuel users file quarterly reports. Any knowing failure to keep proper records is a class A misdemeanor. Any violation of the chapter with intent to defraud is a Class D felony.

DIVERSIONS - Shippers or transporters diverting a shipment of fuel from the original destination state shall notify DOR of the change. A call shall be made to the DOR by the next business day, and a verification number shall be added to the shipping paper.

PENALTIES - The penalty provisions of the chapter are applied to position holders and suppliers. The DOR may no longer waive interest on penalties. Several of the civil fines and criminal penalties are increased.

DYED FUEL - No person may operate a motor vehicle with dyed fuel, with several exceptions. Any person evading this section is guilty of a Class A misdemeanor. Notices pertaining to dyed fuel shall be posted by all sellers of dyed fuel.
MIKE HOEFERKAMP