Special fuel used on public highways

From the 2024 DOR Tax Exemption Study

82.08.0255(1)(f); 82.12.0256(2)(d) - Special fuel used on public highways Description Fuel used by vehicles on public highways and subject to the special fuel tax is exempt from sales and use taxes. Purpose To avoid double taxation. However, there are other instances of products being subject to a tax at the distributor level and another tax at the retail level. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $645.735 $646.474 $650.909 $669.992 Local Taxes $290.389 $290.721 $292.716 $301.297 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $592.601 $650.909 $669.992 Local Taxes $0.000 $266.494 $292.716 $301.297 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the consumer energy price growth rate reflected in the S&P Global Market Intelligence March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Department of Revenue, Excise tax data - S&P Global Market Intelligence, Co