The bill seeks to clarify the taxation process for gasoline and special fuels in Montana by establishing that the tax applies to the first licensed distributor who owns the fuel when it is withdrawn from a terminal or refinery or imported into the state. It revises definitions related to fuel distribution, particularly defining "distributed" to mean that imported fuel is considered distributed once it arrives and is brought to rest in Montana. The bill also introduces new requirements for distributors, including licensing and security measures, and outlines tax implications for fuel that is withdrawn or imported.

Additionally, the bill amends several sections of the Montana Code Annotated (MCA) concerning fuel taxes and the use of dyed special fuel. It specifies that construction materials under certain contracts must be produced using fuel on which Montana fuel tax has been paid and clarifies tax computations for distributors and motor vehicle operators. Key deletions include the removal of specific subsections related to dyed special fuel, while new language establishes an effective date for the bill of July 1, 2026. The legislation aims to enhance compliance with fuel tax regulations and clarify the legal framework surrounding dyed special fuel usage in Montana.

Statutes affected:
LC Text: 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_1(1): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_1: 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441