The bill amends the Use Tax Act of 1937 by introducing new exemptions for the storage, use, or consumption of aviation fuel and eligible fuel, effective October 1, 2025. Specifically, Section 4gg exempts aviation fuel from the tax, while Section 4hh provides a similar exemption for eligible fuel, which is defined as any fuel subject to the motor fuel tax. Additionally, the bill modifies Section 6c to require informational reports from individuals and sellers involved in aviation fuel transactions, detailing taxable amounts and tax liabilities, while also updating the language regarding penalties for non-compliance.

Furthermore, the bill revises Section 21 to clarify the distribution of funds collected under the act, particularly emphasizing the allocation of tax revenue from aviation fuel to the state aeronautics fund and the qualified airport fund. It also includes provisions for reconciling amounts distributed based on actual collections and mandates that a portion of the funds be deposited into the local government reimbursement fund. The enactment of this bill is contingent upon the passage of several other specified bills in the 103rd Legislature.

Statutes affected:
Substitute (H-1): 205.96, 205.111
House Introduced Bill: 205.96, 205.111
As Passed by the House: 205.96, 205.111