SB3364 Summary

• Caps the motor fuel prepayment tax rate at $0.18 per gallon for motor fuel, effective 30 days after enactment, with reduced rates for gasohol (80% of motor fuel rate) and biodiesel blends.

• Limits the tax imposed on motor fuel, gasohol, majority blended ethanol fuel, and biodiesel blends to not exceed the cents per gallon rate established by the Department of Revenue for prepayment purposes.

• Applies the motor fuel tax cap across four tax acts: Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

• For gasohol and biodiesel blends taxed during 2024-2028, establishes reduced percentage rates (90% for gasohol, 80% for mid-range ethanol blends) of the motor fuel rate.

• Effective immediately upon enactment with 30-day notice requirement for the Department to communicate rate changes to affected taxpayers.