M&E on sales of manufactured or compressed natural gas

From the 2024 DOR Tax Exemption Study

82.08.02565(1)(c)(ii); 82.12.02565 - M&E on sales of manufactured or compressed natural gas Description A gas distribution business that manufactures compressed or liquefied natural gas for use as transportation fuel must pay sales and use taxes on machinery and equipment purchases for use in the manufacturing process. Beginning July 1, 2017, the gas distribution business may apply for a remittance for the sales and use taxes paid on such equipment. The gas distribution business can only apply for a remittance once a quarter and the department cannot accept remittances after June 30, 2028. Purpose To provide uniform treatment of natural gas used as a transportation fuel. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues because currently no exemption taxpayers use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions There have been no remittance requests. We expect no requests during the forecas