Bill
A 7417
Bill A 7417 eliminates state taxes on motor fuels, allowing localities to do the same, aiming to lower fuel costs for consumers and reduce business expenses.
Bill Number: A 7417
Title: Eliminates state sales and compensating use tax on motor fuels and diesel motor fuels and authorizes localities to eliminate such taxes; establishes various exemptions from sales and use tax
Status: HELD FOR CONSIDERATION IN WAYS AND MEANS
Introduced: March 25, 2025
Classification: Bill
Bill A 7417 aims to alleviate the financial burden on consumers and businesses by eliminating the state sales and compensating use tax on motor fuels and diesel motor fuels. The bill also empowers local governments to opt-out of these taxes, potentially leading to further reductions in fuel costs at the local level. Additionally, the bill seeks to establish various exemptions from sales and use tax, which could broaden the scope of tax relief for certain goods and services.
Elimination of State Taxes: The bill proposes the complete removal of state sales and compensating use taxes on:
Local Tax Authority: Localities will be authorized to eliminate their own sales and compensating use taxes on motor fuels and diesel, allowing for localized tax relief.
Exemptions from Sales and Use Tax: The bill includes provisions to establish various exemptions from sales and use tax, although specific exemptions are not detailed in the current version.
Consumers: The elimination of state and potentially local taxes on motor fuels is expected to lower fuel prices for consumers, providing immediate financial relief.
Businesses: Businesses that rely on motor fuels for operations may benefit from reduced operational costs, potentially leading to lower prices for goods and services.
Local Governments: By allowing localities to opt-out of fuel taxes, the bill could lead to variations in tax structures across different regions, impacting local revenue streams.
Current Status: As of June 6, 2025, the bill is held for consideration in the Ways and Means Committee, indicating that further discussion and potential amendments may occur before it is brought to a vote.
Referral History: The bill was referred to the Ways and Means Committee on March 25, 2025, shortly after its introduction.
This bill is part of a broader legislative context, with several related bills from prior sessions, including:
- A 5216
- A 1574
- A 10355
- A 6113
- A 4558
- A 8481
- A 1690
- S 3228 (companion bill)
These related bills may address similar issues or propose alternative approaches to tax relief on motor fuels and other goods.
This summary provides an overview of Bill A 7417, highlighting its main objectives, key provisions, and potential impacts on various stakeholders. Further developments will depend on the outcomes of discussions in the Ways and Means Committee.
Compiled from official sources — confirm details with the bill’s official record.
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