Successive uses of petroleum

From the 2024 DOR Tax Exemption Study

82.23A.030(1) - Successive uses of petroleum Description Successive possession of previously taxed petroleum products is exempt from the tax. This exemption expires on July 1, 2030. Purpose Ensure the tax applies only to the first use of petroleum products within the state. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $45.070 $45.540 $11.550 $47.820 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 $41.750 $11.550 $47.820 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 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 for the next two quarters. - The likelihood of successive taxation exposure is expressed in terms of multiplier(s) to the currently reported taxable amount, and it is based on the supply chain where businesses are