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fuels in Montana by establishing that the tax applies to the first licensed distributor who owns the fuel when it is withdrawn from a terminal or refinery or imported into the state.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 several sections of the Montana Code Annotated (MCA), particularly updating the definition of "distributed" to indicate that gasoline or special fuel is considered distributed once it arrives and is brought to rest in Montana, excluding fuel stored at refineries or pipeline terminals. It also emphasizes that the tax incidence is on the distributor for the privilege of conducting business in the state, with specific tax rates set for gasoline, special fuel, and aviation fuel.

Further amendments include changes to licensing requirements, stipulating that only licensed distributors may withdraw fuel from refineries or terminals, and introducing disciplinary actions for non-compliance, including potential license revocation. The bill also details the computation of taxes for distributors and motor vehicle operators, allowing for rounding to the nearest whole dollar, and establishes civil penalties for the unlawful use of dyed special fuel, with specified penalties for first and subsequent 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