Crude oil excluded

From the 2024 DOR Tax Exemption Study

82.23A.010(1) - Crude oil excluded Description The definition of petroleum products includes a variety of products derived from refining crude oil but excludes crude oil itself and liquefiable gases. This definition expires on July 1, 2030. Purpose To avoid taxing crude oil and liquefiable gases. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $37.070 $51.360 $13.030 $53.930 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 $47.080 $13.030 $53.930 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. - The average price of crude oil is equivalent to the forecast for the refiners' acquisition price for crude oil reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The petroleum products tax will be suspended in July 2025. It is expected to be reactivated in April 2026, and remain on through fiscal year 2027 before being suspended at the beginning of fiscal year 2028