SB 3002 Summary

• Establishes a 9.4% income tax on entities (sole proprietorships, partnerships, S-corporations) with taxable income over $4,000,000 per year, applicable to tax years beginning January 1, 2022 or later.

• Increases the motor fuel surcharge from $0.0095 to $0.015 per gallon on refined fuels sold, transferred, or used in the state.

• Increases the motor fuel tax from 8 cents to 16 cents per gallon for most motor fuel, with increases also applied to watercraft fuel (from 5 to 10 cents) and corresponding adjustments to fuel tax refunds.

• Restructures oil and gas production tax credits for barrels north of 68 degrees North latitude, with credits ranging from $8 per barrel (when oil value is below $80) down to $0 (when oil value exceeds $150 per barrel).

• Grants the Department of Revenue authority to adopt implementing regulations, effective no earlier than January 1, 2022.