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Missouri Motor Fuel Tax Refund: What You Need to Know

January 28, 2022

Updated as of 1/28/2022

Effective October 1, 2021, the Missouri motor fuel tax rate increased to 19.5¢ per gallon (17¢ per gallon plus the additional fuel tax of 2.5¢ effective from October 1, 2021 through June 30, 2022). There is a refund provision in the bill, which was added to provide “fairness” since this specific tax increase was not directly approved by voters as it has been in the past. The refund provision only applies to the new tax. Good candidates for these refunds are primarily businesses that purchase significant motor fuel for use in light to medium duty vehicles. 

Senate Bill No. 262 calls for an increase of 2.5 cents per year over a five-year period as follows:

10/1/2021–6/30/2022 – Motor Fuel Tax Rate increases to $0.195

7/1/2022–6/30/2023 – Motor Fuel Tax Rate increases to $0.22

7/1/2023–6/30/2024 – Motor Fuel Tax Rate increases to $0.245

7/1/2024–6/30/2025 – Motor Fuel Tax Rate increases to $0.27

7/1/2025–forward – Motor Fuel Tax Rate increases to $0.295

Qualifications

Taxpayers purchasing fuel in Missouri for highway-use vehicles weighing less than 26,000 lbs. may be eligible to receive a refund of the additional fuel tax paid on Missouri motor fuel. Class group 1 – 6 of the Federal Highway Administration vehicle classification system includes the vehicles that qualify.

Examples of vehicles that don’t qualify include heavy-duty large delivery trucks, large buses, motor coaches, tractor-trailer combos, refuse and construction (cement mixer) trucks.  All motor fuel delivered in Missouri into a motor vehicle supply tank is presumed to be used or consumed on the highways of Missouri.

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

  1. Agriculture use, fuel used in farm equipment, lawn mower, etc.
  2. Commercial or construction use
  3. Refrigerated trucking use
  4. Power take-off use
  5. Home heating
  6. Ingredient or component part of a manufactured product
  7. Business heating

Refund Claims

It’s important to start saving records now so you are prepared when it’s time to submit a refund claim.  Taxpayers must keep records available for inspection for three years. We recommend taxpayers consider a quick cost vs benefit analysis to determine if the amount of refund they may receive is worth the effort of the record keeping and application process.

Refund claims for the October 1, 2021 through June 30, 2022 period may be submitted on or after July 1, 2022 through September 30, 2022. Although a refund claim may not be filed until July 1, 2022, taxpayers will need to begin saving records of each purchase occurring on or after October 1, 2021, that will be included in the refund claim. A refund claim form will be available on the Department of Revenue’s website prior to July 1, 2022. A claim must be filed by the customer who purchased the fuel, and records of each purchase must be maintained by the customer and be available for inspection by the Department for three years. (Motor Fuels Rate Letter, Mo. Dept. of Rev., 10/01/2021.)

Submitting a Claim

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

  1. Vehicle identification number of the 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, as a separate item

The Department will be developing an online system so that customers can electronically file a claim and receive an approved refund.

2021 Senate Bill 262 has included FAQs for additional information. Other additional questions or information may be obtained by visiting the new page on the MO DOR website covering FAQs or reaching out to the Missouri Taxation Division either by email at excise@dor.mo.gov or by phone at 573-751-5860.

Please reach out to your MarksNelson tax advisor for further assistance if you have questions.

 

About THE AUTHOR

Jim specializes in tax planning, compliance, and business advisory services for closely held business and their owners. His current focus is pass-through entity taxation and related individual taxation for the entity’s owners. In addition to his tax experience, Jim has a broad range of public... >>> READ MORE

About THE AUTHOR

Beth joined MarksNelson after working in public accounting at a top 10 firm and in private accounting at two locally based KC companies. In total she has 16 years of experience and often leverages her business background to support the growing tax compliance, consulting, and... >>> READ MORE

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