Fuel for transporting persons with special needs

From the 2024 DOR Tax Exemption Study

82.08.0255(1)(b); 82.12.0256(2)(b) - Fuel for transporting persons with special needs Description Motor vehicle and special fuel purchased by a certified private, nonprofit transportation provider for persons with special transportation needs is exempt from sales and use taxes. The fuel must also be exempt from the special fuel taxes. Purpose To lower nonprofit transportation provider costs. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.177 $0.168 $0.165 $0.160 Local Taxes $0.080 $0.076 $0.074 $0.072 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.154 $0.165 $0.160 Local Taxes $0.000 $0.076 $0.074 $0.072 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate of gallons of fuel sold mirrors the fuel tax collections growth rate reflected in the Transportation Revenue Forecast Council's March 2023 forecast. - Growth rate of selling price mirrors the diesel price growth rate reflected in the U.S. Energy Information Administration annual energy outlook