House Bill 351 seeks to clarify the taxation process for gasoline and special fuels in Montana by establishing that the tax is applied to the first licensed distributor who owns the fuel when it is withdrawn from a terminal or refinery in the state or imported into Montana. The bill includes amendments to several sections of the Montana Code Annotated (MCA), particularly revising definitions related to fuel distribution, such as specifying that gasoline or special fuel is considered distributed once it arrives and is brought to rest in the state. It also emphasizes that only licensed distributors may withdraw fuel from refineries or terminals and outlines the tax rates for various types of fuel, while detailing tax exemptions for certain dyed special fuels used for specific purposes.

Additionally, the bill introduces penalties for the unlawful use of untaxed dyed special fuel, specifying civil penalties for violations and the liability of vehicle operators and sellers. It streamlines legal language by removing certain references to previous subsections regarding dyed special fuel. The effective date for the provisions of this act is set for July 1, 2026. Overall, House Bill 351 aims to enhance compliance with state regulations and simplify the taxation process for fuel distribution 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(2): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_1(3): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_1(4): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_1(5): 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
HB0351_X(1): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(2): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(3): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(4): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(5): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(6): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(7): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X(8): 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441
HB0351_X: 15-70-401, 15-70-402, 15-70-403, 15-70-404, 15-70-441