Summary of Bill S 393

Bill Overview

• Bill Number: S 393
• Title: Relates to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon
• Status: Referred to Budget and Revenue Committee
• Introduced On: January 08, 2025
• Classification: Legislative Bill

Purpose and Intent

Bill S 393 aims to establish a framework for calculating sales and compensating use tax specifically on retail sales of motor fuel and diesel motor fuel. The bill proposes to set a tax rate expressed in cents per gallon, which would standardize the taxation process for these fuels across the state.

Key Provisions

• Tax Rate Specification: The bill will define a specific rate (in cents per gallon) for the sales and compensating use tax applicable to motor fuel and diesel motor fuel.
• Calculation Methodology: It will outline the methodology for computing the tax, ensuring clarity and consistency in how the tax is applied at the retail level.
• Implementation Timeline: While specific implementation dates are not detailed in the current version, the bill is expected to follow standard legislative procedures for enactment after approval.

Affected Parties

• Retail Fuel Sellers: Gas stations and other retail outlets selling motor fuel and diesel will be directly impacted as they will need to adjust their pricing and tax collection practices based on the new tax rate.
• Consumers: End-users purchasing motor fuel and diesel will experience changes in the final price at the pump due to the new tax structure.
• State Revenue: The state government will potentially see changes in revenue from fuel taxes, which could impact budget allocations for transportation and infrastructure projects.

Legislative Process

• Current Status: As of January 08, 2025, the bill has been referred to the Budget and Revenue Committee for further consideration.
• Related Legislation: This bill is related to prior-session bills S 4593 and S 4799, as well as a companion bill A 5794, which may address similar issues or provide additional context for the proposed tax changes.

Conclusion

Bill S 393 seeks to create a clear and standardized approach to taxing motor fuel and diesel sales, which could have significant implications for retailers, consumers, and state revenue. As it progresses through the legislative process, further details regarding the specific tax rate and implementation will be crucial for understanding its full impact.