Natural and manufactured gas used for transportation

From the 2024 DOR Tax Exemption Study

82.12.022(6); 82.14.230(6) - Natural and manufactured gas used for transportation Description The use of natural gas as a transportation fuel, when provided by a person other than a gas distribution business, is exempt from use taxes. The PU tax provides a similar exemption for sales by gas distribution businesses. Purpose To promote the use of natural gas as a transportation fuel and consistency in the tax code. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $10.869 $11.786 $13.956 $17.101 Local Taxes $13.152 $14.261 $16.887 $20.692 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $10.804 $13.956 $17.101 Local Taxes $0.000 $13.073 $16.887 $20.692 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rates mirror the natural gas end-use demand and natural gas price growth rates reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Estimates reflect state brokered natural gas rate of 3.85% and average local brokered natural gas rate o