Senate Bill 341 Summary

• Extends motor fuel tax to alternative fuels including natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and hythane, taxing these fuels at rates equivalent to diesel or gasoline base rates depending on the fuel type.

• Establishes licensing requirements for alternative fuel dealers and alternative fuel commercial users, with license fees of $500 for dealers and $50 for commercial users.

• Changes alternative fuel tax reporting and payment from quarterly to monthly for dealers and requires commercial users to report alternative fuel consumption beginning July 1, 2016.

• Creates tax exemptions for alternative fuel sold directly to federal, state, or political subdivisions, and for fuel used in school buses operated by nonprofit educational institutions.

• Allows refunds for alternative fuel used for non-taxable purposes or consumed in non-road vehicle operations, with 18-month claim filing deadline.