Removes the variable rate component of the motor fuel excise tax.

Removes the imposition of a variable tax rate on motor fuels. Under current code, the motor fuel excise tax is composed of a flat rate tax of 20.5 cents per invoiced gallon and a variable rate tax which is 5 percent of the average wholesale price of each motor fuel as determined annually by the State Tax Commissioner. No effective date is given in the bill; therefore, if passed, the legislation would become effective 90 days from passage. Per our interpretation, the legislation, if passed, would reduce State Road Fund collections by an average of $215.0 million per year beginning in FY2026 based on the current variable tax level of 15.2 cents per gallon. Additional administrative costs incurred by the State Tax Department would be $16,500 in FY2025.

Pending Committee action.

02/12/2025 Introduced. Referred to House Committee on Finance.