HB 5582 Summary

• Creates phased sales tax exemptions for aviation fuel beginning October 1, 2020: 100% exemption of the 2% rate in 2020-2021, combined 50% exemption of 4% rate plus 100% exemption of 2% rate in 2021-2022, and full 100% exemption of all sales tax beginning October 1, 2022.

• Creates phased sales tax exemptions for eligible fuels (motor fuels subject to the Motor Fuel Tax Act) with identical phase-in schedule: 100% of 2% rate exemption through September 30, 2021, then 50% of 4% rate plus 100% of 2% rate through September 30, 2022, then full exemption after October 1, 2022.

• Modifies prepayment tax collection rates for gasoline and diesel fuel, reducing the applicable percentage from 6% to 4% during October 2020-September 2021, and to 2% during October 2021-September 2022.

• Requires quarterly informational reporting by aviation fuel retailers showing gallons sold, gross proceeds, tax liability, and airport-specific sales data through September 30, 2022.

• Modifies aviation fuel tax revenue distribution to aeronautics and airport funds, limiting the distribution period through September 30, 2020 with reconciliation procedures for affected fiscal years.

• Legislation is contingent upon enactment of HB 5583, HB 5584, HB 5585, and HB 5586.