A few weeks ago, I wrote about the state’s new gas tax refund program and how its first year was a complete failure (learn more about the gas tax hike and refund scheme here). In short, very few Missourians took advantage of the program, and I think a big reason for that is how difficult the state made the process for claiming a refund. Fortunately, if a bill recently passed by the House can make it across the finish line, Missouri drivers would be in store for a much better experience next year.
If enacted, House Bill (HB) 519 would require the state’s department of revenue to develop a mobile application for claiming gas tax refunds, which is what I suggested the state do back before the program began. The idea of keeping track of gas receipts for a whole year to fill out a form and mail it to Jefferson City always seemed like more work than the refund would likely be worth to most Missourians. That’s why I think having an easy process for registering gas purchases at the point of sale and submitting those receipts through an app for refunds would be a real game changer.
Additionally, the bill would get rid of the arbitrary window for filing rebates. As much as I’d like to think most Missourians enjoy following the state’s budget along with me every year, I don’t think the end of the state’s fiscal year (which is the current deadline for filing gas tax refunds) represents an obvious time for most to be filing tax documents. Expanding the window to allow gas receipt submissions through the app all year, as well as when individuals file their taxes in April, would likely make things much more convenient for those interested in claiming a refund.
Finally, the bill allows taxpayers who don’t want to mess with tracking gas receipts to claim a “standard refund,” which will offer a specified amount as a credit against the individual’s income tax liability. For the 2023 tax year, the standard refund would be $30. But by 2026 and every year after, when the gas tax hike is fully ramped up, the refund would be $75.
As I explained previously, if the legislature really wasn’t trying to raise taxes on Missourians without their input, the refund portion of the gas tax hike should be simple enough that most taxpayers feel they can reasonably take advantage of the refund opportunity. Based on the data from the refund’s first full year, I’d say that was not the case. While HB 519 is not perfect, I think it goes a long way toward demonstrating the state’s commitment to the law enacted by the legislature. I, for one, would appreciate a better way to reclaim my tax dollars.
