As gas prices climb higher, businesses are asking us about Missouri’s Motor Fuel Tax Refund. What is the fuel tax refund? How much can you save? And is Missouri’s fuel tax refund worth your time to pursue?
What is Missouri’s Motor Fuel Tax Rate?
On Oct. 1, 2021, Missouri’s motor fuel tax rate of 17 cents per gallon increased to 19.5 cents per gallon.
Missouri’s motor fuel tax rate will increase by 2.5 cents per gallon annually on July 1 until it reaches 29.5 cents in July 2025.
Under SB 262, you may request a refund of the Missouri motor fuel tax increase paid each year:
- 2.5 cents in 2022
- 5 cents in 2023
- 7.5 cents in 2024
- 10 cents in 2025
- 12.5 cents in 2026
Relief for Missouri’s Drivers
Under Senate Bill 262, you may be eligible to receive a refund of the 2.5 cents tax increase you pay on Missouri motor fuel in vehicles weighing less than 26,000 pounds for highway use on or after Oct. 1, 2021, through June 30, 2022.
Although you are unable to apply for a refund claim until July 1, 2022, you’ll need to begin saving records of each purchase occurring on or after Oct. 1, 2021, that you intend to include in your refund claim next year.
How to Claim the Fuel Tax Refund
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 available for inspection by the Department for three years.
The following information will be required when submitting a refund claim:
- Vehicle identification number of the motor vehicle into which the motor fuel was delivered.
- Date of sale.
- Name and address of purchaser.
- Name and address of seller.
- Number of gallons purchased; and
- Number of gallons purchased and charged Missouri fuel tax, as a separate item.
The Missouri Department of Revenue will be developing an online system so that customers can electronically file a claim and receive an approved refund.
Who Should File for the Missouri Tax Refund?
The average car fuel tank holds 12 gallons. At just 2.5 cents per gallon, the refund for one trip to the gas station would be a quarter and some change.
If you’re an average consumer of fuel, it may not be worth the hassle record-keeping and filing for the refund.
However, if you have a large fleet of vehicles weighing less than 26,000 pounds, then it may make sense for you to pursue this fuel tax refund.
Learn more: Missouri Motor Tax Fuel Refund FAQ
If you have questions, reach out to us at 314-961-1600 or contact us to discuss your situation.
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Alan Dierker is a Tax Manager with experience in tax, outsourced controller services, including fulfilling compilation and preparation agreements, payroll and compliance issues. He also has experience in the following industries: Wholesale Distribution, Private Foundations, Not-for-Profit and Real Estate.
About Smith Patrick CPAs
Smith Patrick CPAs is a boutique, St. Louis-based, CPA firm dedicated to providing personal guidance on taxes, investment advice and financial service to forward-thinking businesses and financially active individuals. For over 30 years, our firm has focused on providing excellent service to business owners and high-net worth families across the country. Investment Advisory Services are offered through Wealth Management, LLC, a Registered Investment Advisor.