Waste vegetable oil used in production of biodiesel

From the 2024 DOR Tax Exemption Study

82.08.0205; 82.12.0205 - Waste vegetable oil used in production of biodiesel Description Waste vegetable oil sold to and used by a person to produce biodiesel for personal use is exempt from the sales and use taxes. Purpose To support production of alternative fuels. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.888 $0.944 $1.003 $1.067 Local Taxes $0.399 $0.424 $0.451 $0.480 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.865 $1.003 $1.067 Local Taxes $0.000 $0.389 $0.451 $0.480 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the compound annual growth rate of 6.3% reflected in used cooking oil market report. - Value of waste vegetable oil is $3.3 per gallon. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - U.S. Department of Agriculture Energy, Biodiesel energy data - U.S. Energy Information Administration, Biodiesel data - The International Market Analysis Research and Cons