HB 1360 Summary

• Repeals and replaces sections 142.800 and 142.803, RSMo relating to motor fuel taxation, effective January 1, 2016.

• Establishes comprehensive definitions for motor fuel tax purposes including agricultural purposes, alternative fuels, aviation fuel, blended fuel, diesel fuel, and various fuel-related terminology.

• Imposes a base motor fuel tax of 17 cents per gallon, with an additional 2% tax on the statewide average wholesale price of unleaded gasoline and diesel fuel beginning January 1, 2016, unless wholesale prices exceed $4 per gallon.

• Sets tiered tax rates for alternative fuels: compressed natural gas at 5 cents per gallon equivalent (until December 31, 2019), then 11 cents (2020-2024), then 17 cents thereafter; liquefied natural gas follows the same schedule at diesel gallon equivalent rates.

• Recalculates wholesale price benchmarks every six months using a six-month lag period to determine applicability of the 2% additional tax.