B6C6075CE733F730872584F900516338 Hearing Summary

Pierce Lively, OLLS, testified before the committee, explaining that, on the recommendation of the TEEISC, the bill repeals the nonprofit transit agency fuel excise tax exemption. Under the exemption, nonprofit transit agencies are exempt from the fuel excise tax on liquefied petroleum gas and natural gas for vehicles that are used for transit purposes and only use liquefied petroleum gas and natural gas. However, the OSA found that there are no vehicles that use liquefied petroleum gas in the United States, and only 15% of vehicles use natural gas or natural gas blends. Which likely explains why the exemption has never been claimed since it was enacted in 1994.