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Gasoline And Special Fuel Tax Restructuring

Concerning the restructuring of the gasoline and special fuel tax.
2021 Regular Session
Fiscal Policy & Taxes
Bill Summary

The act restructures the excise tax on gasoline and special fuel (fuels) by:

  • Modifying the point of taxation;
  • Eliminating the 3 tax deferred transactions;
  • Exempting the tax from the import or removal of fuels by bulk transfer to, from, or within a terminal or refinery in certain circumstances;
  • Permitting the 2% allowance to cover losses for terminals that are outside of the state;
  • Requiring a terminal operator to verify that the person receiving the fuels is a licensee or is exempt from taxation;
  • Specifying when the tax is imposed on an importer, blender, seller of liquefied petroleum gas or natural gas, user, and other distributor;
  • Harmonizing provisions applicable to the exemption for governments;
  • Explicitly identifying certain fuels used in aircrafts as being exempt;
  • Codifying that a distributor has the burden of proving that fuels are exempt;
  • Codifying the exemption for the removal of fuels from a terminal by a licensed exporter exclusively for delivery to another state;
  • Requiring a terminal operator to be licensed, which is the current practice;
  • Consolidating the penalties for acting without a license;
  • Making conforming changes related to the aforementioned changes;
  • Reorganizing and relocating provisions; and
  • Modernizing language.
    (Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details