Last week, the Federation of Tax Administrators held their 2022 Motor Fuel Tax Section Conference for the first time in 2 years, and IGEN was excited to attend alongside 250 other industry and government leaders.
Here are our key takeaways from the conference:
1. Latest Audit Practices
In the wake of the COVID-19 pandemic, auditors continue conducting virtual and onsite audits.
As a result, tax professionals can expect to upload and send waivers, organizational charts, data samples, and documentation to auditors electronically.
2. Taxes and Electric Vehicles
Electric vehicles have become more popular across the United States, and industry leaders are asking how taxation will be applied to alternative fuels.
While implementing a tax may not be immediate, there are a few options for how charging stations would be taxed. Some possibilities include taxing stations at supermarkets and hotels or taxing consumers that have charging stations at their homes.
California has recently adopted a mandate to transition the state to zero-emissions vehicles by 2035. Plug-in hybrid cars will continue to be allowed if they meet a certain electric mile threshold. Oregon expects to follow a similar direction.
3. 720 Superfund Tax and Fuel Industry
As part of the Infrastructure Investment and Jobs Act reinstated last year, the superfund excise tax would apply to certain chemicals and hazardous substances. Imported chemicals would have a tax applied to them, and if it's sold to a refinery, there would be an opportunity for a refund. However, it's unknown how or if a refund could be claimed for later exempt use by companies.
The chemicals and substances are taxed by the ton and then converted to pounds, pounds to gallons, and occasionally gallons to barrels.
You can stay updated with the latest superfund tax information here.
4. Employee Retention and Hiring
Currently, 40% of the workforce is looking to change jobs, and industry leaders feel the impact. From hiring to retaining employees, companies see that people want the power in their hands regarding working hours, where they work, and work-life balance.
Industry leaders came together to discover best practices in hiring and retaining, including internship programs, advanced training, mentoring programs, and professional development roadmaps.