(1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.
(a) The excise tax shall become due and payable when:(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.(e) Special fuel is acquired tax free.
(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.
(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.
(e) Special fuel is acquired tax free.
(2) The special fuel excise tax shall be as follows:(a) On undyed diesel fuel, Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter;(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and(c) Five and One-fourth Cents (5.25¢) per gallon on special fuel used as fuel in aircraft.
(a) On undyed diesel fuel, Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter;
(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and
(c) Five and One-fourth Cents (5.25¢) per gallon on special fuel used as fuel in aircraft.
(3) Beginning July 1, 2029, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average, which is the average for the twelve-month period ending December 31, 2025, and rounded to the nearest whole cent. The maximum amount of increase in the excise tax rate shall not exceed One Cent (1¢) per net gallon of gasoline or special fuel and shall take effect every other year. The Department of Revenue shall notify each terminal supplier, position holder, licensed distributors distributor, and importer of the tax rate adjustment applicable under this paragraph on or before March 1.