Self-produced fuel (refinery fuel gas)

From the 2024 DOR Tax Exemption Study

82.12.0203 - Self-produced fuel (refinery fuel gas) Description Refinery fuel gas is subject to the following state use tax rate structure in lieu of the 6.5% state use tax rate: - 0.963 % from January 1, 2018, through December 31, 2018. - 1.926 % from January 1, 2019, through December 31, 2019. - 2.889 % from January 1, 2020, through December 31, 2020. - 3.852 % from January 1, 2021, and thereafter. However, the use of refinery fuel gas by an extractor or manufacturer is not subject to local use tax when the fuel is used directly in the operation of the particular extractive operation or manufacturing plant that produced or manufactured the same refinery fuel gas. Purpose To provide a lower tax rate to improve industry competitiveness. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.440 $5.450 $5.090 $5.190 Local Taxes $4.650 $4.660 $4.350 $4.440 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $5.000 $5.090 $5.190 Local Taxes $0.000 $4.270 $4.350 $4.440 Assumptions - This repeal takes effect July 1, 2024, and impacts 11