1. 1. As used in this section, the following terms mean:

   1. (1) "Fuel ethanol", one hundred ninety-eight proof ethanol denatured in conformity with United States Bureau of Alcohol, Tobacco and Firearms' regulations and fermented and distilled in a facility whose principal (over fifty percent) feed stock is cereal grain or cereal grain by-products;
   2. (2) "Fuel ethanol blends", a mixture of ninety percent gasoline and ten percent fuel ethanol in which the gasoline portion of the blend or the finished blend meets the American Society for Testing and Materials - specification number D-439.
2. 2. Notwithstanding any other law to the contrary, the rate of the license tax imposed by section 142.020 on qualified fuel ethanol blends used in propelling motor vehicles upon the public highways of Missouri is two cents per gallon less than the rate of tax stated in section 142.025, until July 1, 1996.
3. 3. The state highways and transportation department fund shall be reimbursed from the state general revenue fund in the amount not to exceed two cents per gallon for each gallon of ethanol blend motor fuel taxed at a rate of taxation which is a maximum of two cents below the tax imposed on all other motor fuel sold in this state for propelling motor vehicles on the public highways of this state. The department of transportation, by December first of each year, shall determine from the reports filed by distributors with the department of revenue the number of gallons of ethanol blended motor fuel sold in this state for propelling motor vehicles upon the highways of this state during the preceding fiscal year ending on June thirtieth of that year. The department of transportation shall certify the number of gallons so derived to the respective chairpersons of the senate appropriations committee and the house budget committee by the last day of December. The figures and exemption credits so certified shall be the amount of reimbursement to be appropriated annually to the state highways and transportation department fund from the state general revenue fund.

(L. 1988 S.B. 600, A.L. 1989 S.B. 162)

Expires 6-30-96

* Effective date and expiration date, see section 142.029