MS HB1661

Establishes a flat fee system in lieu of excise tax on special fuels for vehicles using liquefied petroleum gas, natural gas, liquefied natural gas, methanol, or M-85 fuel.

Sets flat fees based on vehicle type and fuel: $50 for passenger cars and light trucks using LPG/natural gas ($25 if acquired after July 1); $100 for passenger cars/light trucks using LNG/methanol/M-85 ($50 if acquired after July 1); $150 for vehicles over one ton using alternative fuels ($75 if acquired after July 1).

Requires annual decal display in vehicle windshield lower right corner, issued by Department of Revenue with $1 replacement fee if windshield is replaced; decals expire December 31 annually.

Directs revenues from LPG and natural gas fees to the General Fund; revenues from LNG, methanol, and M-85 fees to the State Highway Fund; imposes 20% penalty for failure to obtain decal within 30 days.

Effective July 1, 2012.