Power pumping unit

From the 2024 DOR Tax Exemption Study

82.38.180(1)(f) - Power pumping unit Description The motor vehicle or special fuel tax may be refunded for tax paid on fuel used in power pumping units or other power take-off equipment of any motor vehicle which is accurately measured by metering devices that have been specifically approved by the Department of Licensing or by a formula determined by the Department of Licensing. Purpose Under the 18th Amendment to the state constitution, fuel tax receipts can only be used for highway purposes. The refund helps to ensure that the tax applies only to fuel used on public highways. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.810 $2.850 $2.900 $2.940 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.620 $2.900 $2.940 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 special fuel tax collections growth rate reflected in the Transportation Revenue Forecast C