HB 21-1322 Summary: Gasoline and Special Fuel Tax Restructuring

• Restructures gasoline and special fuel tax collection by shifting tax liability from distributors to suppliers/terminal operators for transactions within the bulk transfer and terminal system, effective January 1, 2022.

• Eliminates tax-deferred sales of gasoline and special fuel after December 31, 2021, except for exemptions available through the Department of Revenue (ex-tax purchases by government entities and certain air carriers).

• Eliminates deposit requirements for fuel tax licensees after December 31, 2021, and repeals deposits subsections effective December 31, 2022.

• Adds "terminal operator" as a licensed category and defines "bulk transfer" to clarify tax application to pipeline and vessel transfers plus railcar transfers from refineries to terminals.

• Provides penalty waivers for distributors demonstrating good-faith compliance efforts during the 2022 transition period and amends reporting requirements to require electronic filing in consultation with industry standards.