The bill amends the General Sales Tax Act of 1933 to introduce new exemptions for the sale of aviation fuel and eligible fuel, effective October 1, 2025. Specifically, it exempts the retail sale of aviation fuel, as defined by the state's aeronautics code, and establishes an exemption for eligible fuel, which is any fuel subject to the motor fuel tax act. Additionally, the bill modifies existing language in Sections 6a and 6c regarding the prepayment of taxes on gasoline and diesel fuel, replacing the term "shall" with "must" to clarify obligations and specifying that the department will determine prepayment rates through September 30, 2025.

The bill also introduces several definitions related to the sale and reporting of aviation fuel, including "Removal," "Supplier," and "Terminal." It updates the term "internal revenue service" to "Internal Revenue Service" and clarifies the definition of "aviation fuel." Furthermore, it mandates that taxpayers selling aviation fuel must file a quarterly informational report detailing their taxable sales and tax liabilities, with a penalty for failure to file. The enactment of this bill is contingent upon the passage of several other specified bills from the 103rd Legislature.

Statutes affected:
Substitute (H-1): 205.56
House Introduced Bill: 205.56
As Passed by the House: 205.56