Motor fuel taxes

From the 2024 DOR Tax Exemption Study

82.04.4285 - Motor fuel taxes Description Businesses may deduct income subject to B&O tax equal to the amount of state and federal taxes included in the sales price of motor vehicle fuel. These taxes are imposed on distributors and passed on to consumers in the retail price. Purpose To eliminate double taxation. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $10.900 $10.240 $9.700 $9.230 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $9.390 $9.700 $9.230 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the oil price growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Tax base Year Enacted: 1935 Primary Beneficiaries: Motor vehicle wholesalers and retailers