Committee hears bill to ease paperwork for small retailers selling dyed/off-road diesel; industry and DOR urge careful drafting

Representative Willard Haley presented House Bill 3,392 to the House Committee on Agriculture, saying the measure would address problems rural farmers and small retailers face when purchasing and selling dyed (off-road) diesel. "This bill... we want to allow small stations such as this to be exempt from having this paperwork on file," Haley said, describing cases where unmanned or convenience pumps make it impractical for customers to produce or retailers to collect the required Form 149 tax-exempt documentation.

Nicholas Lepper, who testified for Seguire Oil Company (Eagle Stop stores), said his company was assessed more than $127,000 after an audit covering roughly three years because it could not produce the required logs for many small rural transactions. "This current process is not aligned with how these transactions occur," Lepper said, arguing the paperwork requirement forces retailers either to remove dyed diesel from unmanned pumps or accept the risk of a large assessment.

Ron Leone, executive director of the Missouri Petroleum and Convenience Association, said he supports the bill’s goal of preserving service at rural retailers but urged the committee to adopt protective language for distributors and retailers so those businesses do not absorb back taxes or penalties when customers misuse fuel. Leone explained fuel taxes are prepaid at the terminal by distributors and warned that changing paperwork requirements could have unintended consequences if dishonest actors exploit gaps.

Representatives asked about technological options (card-linked PINs), enforcement history, and whether the Department of Revenue had insights on audit frequency. Zach White, legislative director for the Department of Revenue, cautioned that auditors must respect taxpayer confidentiality but confirmed Form 149 is the statutory paperwork currently required to claim exemption and said the department is reviewing amendment language for federal compliance. White also said the department expects a $0 fiscal note because larger operations generally have account linkages while the compliance gap is concentrated among small unmanned pumps.

Agricultural groups including the Missouri Soybean Association, Missouri Farm Bureau and Missouri Corn Growers Association testified in support, saying the change would reduce burdens for growers who rely on local pumps. Committee members pressed whether the amendment should explicitly limit retailer/distributor liability to back taxes rather than creating broad immunity; sponsors and witnesses signaled willingness to refine language.

The committee heard multiple witnesses and asked the department to vet proposed language for federal compliance; no committee vote on HB 3,392 was recorded in this transcript.