This bill, requested by the Department of Transportation, proposes a significant change in the taxation of gasoline and special fuels by shifting the point of taxation from the distributor to the "first receiver." The term "first receiver" is defined as the first licensed distributor who physically receives fuel from a terminal or refinery, or an importer/exporter who owns the fuel upon its entry into the state. The bill clarifies that the tax is imposed when fuel is removed from a refinery or terminal in Montana or when it arrives in the state. Additionally, it modifies licensing requirements, stating that exporters or importers must be licensed in their respective states to qualify for a Montana distributor license, and establishes tax liabilities for distributors and suppliers in cases of fuel exportation without verified tax payment.

The bill also amends several sections of the Montana Code Annotated (MCA) to ensure compliance with fuel tax regulations. It specifies that all special fuel or volatile liquids, except liquid petroleum gas, must have Montana fuel tax paid when sold or used in motor vehicles. The computation of taxes for motor vehicle owners is updated, and the term "licensed distributor" is introduced in various sections to emphasize the requirement for distributors to submit statements and payments. Furthermore, the bill outlines the process for refunds or credits for taxes paid on gasoline or special fuel, establishes penalties for the misuse of dyed special fuel, and clarifies the liability of vehicle operators and sellers regarding tax payments. The new regulations are set to take effect on January 1, 2024, aiming to enhance compliance and accountability in the fuel tax system.

Statutes affected:
Introduced: 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-410, 15-70-425, 15-70-432, 15-70-434, 15-70-441