HB674 Bill Summary

• Transfers collection of petroleum product inspection fees from the Department of Agriculture and Industries to the Department of Revenue, effective April 1, 2014.

• Separates inspection fee collection by product type: gasoline, aviation gasoline, and jet fuel collected via terminal excise tax return; other petroleum products collected via separate return.

• Allocates two and one-half percent (minimum $87,500 annually) of inspection fee proceeds to the Department of Revenue to offset administrative costs of collection.

• Increases motor fuel excise tax on gasoline from 16 cents to 18 cents per gallon (with additional $.06 tax instead of $.04) and on aviation gasoline from 9 cents to 11.5 cents per gallon.

• Appropriates $500,000 to the Department of Revenue from the Public Road and Bridge Fund for fiscal year 2014 to develop and implement the required system changes.