The state has received an estimated 500 refund claims for the 2.5-cent-per-gallon motor fuel tax increase that took effect in October 2021, but the Missouri Department of Revenue said it's too early to identify who is submitting applications or what the average refund amounts to.
DOR began accepting gas tax refund claims July 1 under a provision in the legislation that raised the tax, which Missouri lawmakers passed in 2021. The provision allows consumers to save receipts and file a refund claim for the amount of increased fuel tax they've paid since it was implemented.
Anne Marie Moy, DOR director of strategy and communications, said an estimated 500 claims were received by Tuesday. She said no information was currently available as to whether more individuals or businesses were responsible for submitting claims or how big of a refund applicants were claiming they should receive on forms.
According to the fiscal note attached to the legislation when passed, 23 additional staff are required within DOR to process the motor fuel tax refund claims.
Moy said the department hired two permanent employees and 18 seasonal employees to assist with processing refund claims.
Missouri increased its tax rate on gasoline in 2021, phasing implementation by 2.5 cents per gallon each year until 2025 for a total increase of 12.5 cents per gallon. The first 2.5-cent tax increase took effect in October 2021 and the second increase was July 1.
Motorists filing for refunds can only claim the 2.5 cents-per-gallon they paid between October 2021 to June 30, 2022. To claim a refund on the 5-cent tax rate increase experienced from July 2022 to June 2023, motorists will need to file another claim next year.
Applicants have until Sept. 30 to submit refund claims to the department, which can be done online through the department's website, an electronic excel template, or paper and electronic applications. DOR's MyTaxPortal lists online filing options, which the department suggests for more efficient processing of claims.
The paper refund claim form is 4923-H Highway Use Motor Fuel Refund Claim for Rate Increases.
The refund form includes a worksheet that asks the purchaser to list when the fuel was purchased, the seller name and address, number of gallons purchased and the amount of state fuel tax increase they paid each purchase. The amount of taxes paid often isn't listed on receipts, according to the department, so those submitting a claim should calculate it themselves.
The claim form worksheet is required so motorists don't have to submit their gas receipts when filing for a refund. The department does recommend keeping fuel receipts for three years, however, so it can review claims.
The state Budget and Planning Office's fiscal analysis of the legislation projects 15-100 percent of qualified fuel tax purchases could be refunded. At 15 percent, the state would be refunding $11.7 million and at 100 percent the state would be refunding $78 million.
"The number of refund applications could vary substantially," the fiscal note states.