Refund for Missouri’s Motor Fuel Tax Rate Increase

Thoughtware Alert Published: Oct 22, 2021
Glasses, calculator, pencil and paper lying on desk

This month, the Missouri Department of Revenue implemented its first increase of 2.5 cents on the motor fuel tax rate. Missouri’s motor fuel tax rate was $0.17 per gallon; however, Senate Bill No. 262 calls for an increase over a five-year period as follows:

  1. 10/1/2021–6/30/2022 – Motor Fuel Tax Rate increases to $0.195
  2. 7/1/2022–6/30/2023 – Motor Fuel Tax Rate increases to $0.22
  3. 7/1/2023–6/30/2024 – Motor Fuel Tax Rate increases to $0.245
  4. 7/1/2024–6/30/2025 – Motor Fuel Tax Rate increases to $0.27
  5. 7/1/2025–forward – Motor Fuel Tax Rate increases to $0.295

Customers may be eligible for a refund on the 2.5 cent tax increase for highway use motor vehicles with a gross weight of 26,000 pounds or less. Refund claims for the first increase cannot be submitted until after July 1, 2022, through September 20, 2022; however, it’s important customers start saving records for when it’s time to submit a refund claim. Customers must keep records available for inspection for three years. 

The information required to submit a refund claim to the Department of Revenue includes:

  1. Vehicle identification number of vehicle the fuel was used for
  2. Date of sale
  3. Name and address of purchaser
  4. Name and address of seller
  5. Number of gallons purchased
  6. Number of gallons purchased and charged Missouri fuel tax

Although the motor fuel tax refund is intended for highway use vehicles, motor fuel tax paid for qualifying nonhighway purposes also may be eligible for a refund. The list of qualifying nonhighway uses listed on Form 4923 includes, but is not limited to:

  • Agriculture use, fuel used in farm equipment, lawn mower, etc.
  • Commercial or construction use
  • Reefer use
  • Power take-off use
  • Home heating
  • Ingredient or component part of a manufactured product
  • Business heating

For more information, reach out to your BKD Trusted Advisor or submit the Contact Us form below.

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