House Bill 351 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fuels in Montana by establishing that the tax applies to the first licensed distributor who owns the fuel when it is withdrawn from a terminal or refinery or imported into the state. The bill revises definitions related to fuel distribution, particularly defining "distributed" to mean that gasoline or special fuel is considered distributed once it arrives and is brought to rest in Montana. It also introduces new responsibilities for licensed distributors, including the obligation to pay taxes on the fuel they distribute and the requirement to obtain a license. Furthermore, the bill stipulates that only licensed distributors may withdraw fuel from refineries or terminals and outlines specific tax rates for gasoline, special fuel, and aviation fuel.

In addition to these clarifications, the bill amends several sections of the Montana Code Annotated (MCA), particularly concerning the use of dyed special fuel, by removing certain subsections and clarifying penalties for violations related to untaxed dyed special fuel. It also establishes a method for computing taxes imposed on distributors and operators of motor vehicles, allowing for rounding to the nearest whole dollar. Civil penalties for unlawful use of dyed special fuel are introduced, with fines increasing for repeat offenses. The provisions of this act are set to take effect on July 1, 2026.

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