Fuel Sales & Taxes

FAQs

SECTIONS

Exemptions

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas

Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina

North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

Alabama

Fuel for export (refund)
Kerosene (refund)
Diesel fuel used as heating oil (refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles (refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (refund)
Diesel fuel used for other non-highway purposes (refund- excluding non-commercial marine use)
Dyed diesel (exempt)
Motor fuel used to propel aircraft powered by jet or turbine engines (refund)
Motor fuel sold to the United States (exempt)

Alaska

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used by state and local government highway vehicles

Arizona

Fuel for export
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Fuel sold to the United States or agency of the United States
Fuel sold within an Indian reservation to an enrolled member of the tribe living on the Indian reservation and not used outside of reservation on highways
Fuel to operate a motor vehicle on highways if operated for the sole benefit of an Indian tribe for governmental purposes only

Arkansas

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Diesel fuel used by state and local government highway vehicles
Diesel fuel used in trains

California

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes
Diesel fuel used by the United States and its agencies

Colorado

Reference 39-27-193 CRS

Connecticut

Fuel for export
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)- with prescribed affidavit
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities)- with prescribed affidavit
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
See Conn. Gen. Stat. S 12-458

Delaware

Fuel for export
Kerosene
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Some of the above become tax-free transactions with a qualified Motor Fuel or Special Fuel license. Gasoline used in fishing boat (and airplanes) is taxable, but qualifies for refund with proper documentation.

District of Columbia

Fuel for export
Kerosene
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Florida

Fuel for export (exemption)
Kerosene (credit- refund)
Diesel fuel used as heating oil (refund)
Diesel fuel used for the operation of equipment attached to a motor vehicle (refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (refund)
Diesel fuel used by state and local government highway vehicles (refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (refund)
Diesel fuel used in trains (dyed diesel fuel)
Diesel fuel used for other non-highway purposes (refund)
Sales to the federal government

Georgia

Fuel for export (if the exporter is licensed)

Hawaii

Fuel for export
Fuel sold to the United States government or any department thereof for official use of the government

Idaho

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes
The selected above are not exempt, but are eligible for a refund

Illinois

Fuel for export
Kerosene (if dyed)
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (if dyed diesel)
Diesel fuel used in trains (if dyed)
Diesel fuel used for other non-highway purposes (if dyed)
1-K (if dyed)

Indiana

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Iowa

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles (refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (refund)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes (refund)
Motor fuel sold to the United States government
Motor fuel sold to and used by an Iowa urban or regional transit system
Racing fuel
Undyed special fuel used in watercraft

Kansas

Fuel for export
Kerosene (not blended)
Diesel fuel used as heating oil (if dyed)
Diesel fuel used for the operation of equipment attached to a motor vehicle (if dyed, otherwise refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (if dyed, otherwise refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (if dyed, otherwise refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (Some school buses required to use refund process to get tax paid back)
Diesel fuel used in trains (if dyed, otherwise refund)
Diesel fuel used for other non-highway purposes (if dyed, otherwise refund)

Kentucky

Fuel for export
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes
Diesel fuel used by state and local government nonhighway purposes
Diesel fuel used as heating oil, farm purposes, and other non-highway purposes is taxable unless the purchaser is in compliance with statutes allowing the tax-exempt purchase

Louisiana

Fuel for export
Bulk gasoline sales to US government
Gasoline sold to US armed forces for propelling ships or for aviation purposes
Aviation fuel used for propelling aircraft
Dyed diesel is exempt
Gasoline or undyed diesel fuel exported to another state, as long as tax of the destination state remitted to supplier
Gasoline or undyed diesel fuel exported to a foreign country

Maine

Fuel for export
Kerosene*
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle**
Motor fuel used on a farm for farming purposes
(Gasoline only & 100 gallon quantities)**
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used for other non-highway purposes**
Sales to Federal Government, Jet Fuel for International Flights, Fuel Used in Power Generation

*Prepackaged for home use
**Gasoline must be used for a commercial purpose. Distillates are exempt if used off-highway

Maryland

Fuel for export (Gasoline & distillate with proper license only)
Diesel fuel used as heating oil (Dyed only)
Diesel fuel used for the operation of equipment attached to a motor vehicle (Dyed only)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (Dyed diesel only)
Gasoline used in commercial fishing boats (100 gallon quantities) (Must apply for refund)
Diesel fuel used in trains (Dyed only)
Diesel fuel used for other non-highway purposes (Dyed only)

Massachusetts

Kerosene (business use still subject in some cases)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Diesel fuel used for other non-highway purposes (refund)
Fuel sold to and used by the Federal Government
Fuel sold to and used by the Regional Transit Authorities
Fuel sold to and used by the Water Resources Authority, the Port Authority, and the MBTA
Gasoline and special fuels used in the MA Turnpike (refund)
Aircraft Fuel used in an untaxed manner (refund)
Gasoline used in watercraft (refund)

Michigan

Fuel for export
Kerosene (if dyed)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (as well as for nonprofit, private, parochial or denominational school and college or university buses)
Diesel fuel used for other non-highway purposes (refund, excluding fuel used in a snowmobile, off-road vehicle, or vessel as defined in the natural resources and environmental protection act)
Gasoline or diesel sold directly to the federal or state government
Gasoline removed from a pipeline or marine vessel by a taxable fuel registrant with the internal revenue service as a fuel feedstock user

Minnesota

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Gasoline used in commercial fishing boats (100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Mississippi

Fuel for export
Special Fuel used in boilers etc & Marine Use

Missouri

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Gasoline used in commercial fishing boats (100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Montana

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used for other non-highway purposes

Nebraska

Fuel for export
Kerosene (unless blended with clear diesel)
Diesel fuel used as heating oil (exempt if dyed, subject to refund if clear diesel)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (subject to refund if used in "unlicensed" vehicle or equipment)
Gasoline used in commercial fishing boats (100 gallon quantities) (via refund)
Diesel fuel used in trains (dyed diesel, clear diesel subject to refund)
Diesel fuel used for other non-highway purposes (exempt if dyed, subject to refund if clear is placed into "unlicensed" vehicle or equipment)
Federal agencies, clear diesel of 50 gals or less placed directly into reefer unit or PTO unit

Nevada

Fuel for export
Kerosene (clear kerosene for home heating only)
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle (NOTE: Taxpayer must pay tax upfront and request a refund for the eligible exempt portion of fuel used in auxiliary equipment)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (NOTE: Diesel fuel is exempt, gasoline is not)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes (NOTE: Taxpayer must pay tax upfront and request a refund for the eligible exempt fuel used for non-highway purposes)
Motor fuel used on a farm for farming purposes (NOTE: Farmer and ranchers must pay all excise taxes and then file a claim for a refund based upon 80% of fuel purchased)
Sales made to Indian Tribes with an Interlocal agreement on file, receive exempt fuel. However, they must remit taxes on all sales made to non-tribal members

NOTE: MC-45 is the refund form (for fuel used in auxiliary equipment, power take off, or an off-road manner)

New Hampshire

Fuel for export (exempt)
Diesel fuel used as heating oil (refund if not dyed)
Diesel fuel used for the operation of equipment attached to a motor vehicle (refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (refund)
Diesel fuel used by state and local government highway vehicles (exempt)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (exempt or refund)
Diesel fuel used for other non-highway purposes (refund)

New Jersey

Fuel for export
Diesel fuel used as heating oil (refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (refund)
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Diesel fuel used in trains (refund)
Diesel fuel used for other non-highway purposes (refund)

New Mexico

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle (refund)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes
Special fuel sold the United States government
Special fuel sold to the state of New Mexico or any political subdivision
Special fuel sold to an Indian nation, tribe, or pueblo for its exclusive use
Special dyed fuel

New York

Fuel for export
Kerosene
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs

North Carolina

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

North Dakota

Fuel for export
Motor fuel used on a farm for farming purposes (Farmers pay a $0.23 tax and get a $0.15 refund)

Ohio

Fuel for export
Kerosene (only if non-highway use)
Diesel fuel used as heating oil (if dyed, otherwise refund)
Diesel fuel used for the operation of equipment attached to a motor vehicle (if dyed, otherwise refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (if dyed, otherwise refund)
Diesel fuel used by state and local government highway vehicles
Gasoline used in commercial fishing boats (100 gallon quantities) (refund)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs (partial refund of 6 cents if requested)
Diesel fuel used in trains (if dyed, otherwise refund)
Diesel fuel used for other non-highway purposes (if dyed, otherwise refund)

Oklahoma

Fuel for export (exempt if they are licensed exporters)
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (exempt except as to $0.0208 per gallon of gasoline)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Oregon

Kerosene
Diesel fuel used as heating oil
Diesel fuel used by state and local government highway vehicles

Pennsylvania

Fuel for export
Kerosene
Diesel fuel used as heating oil (if dyed diesel)
Diesel fuel used for the operation of equipment attached to a motor vehicle (if dyed)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (if dyed, or can get refund on clear)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains (dyed only)
Diesel fuel used for other non-highway purposes (dyed only)

Rhode Island

Fuel for export
Kerosene (if sold to an airport)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs

South Carolina

Fuel for export
Kerosene
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

South Dakota

Kerosene (if dyed)
Diesel fuel used as heating oil (if dyed, if not- possible refund)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Gasoline used in commercial fishing boats (100 gallon quantities)
Sales of fuel to the federal government
Sales of fuel to licensed Indian schools
Fuel used as reefer fuel
Fuel taxed at retail stations on Native American reservations is refunded to the tribes based on tribal consumption calculations

Tennessee

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Texas

Fuel for export
Kerosene (if dyed and used for nonhighway purposes)
Diesel fuel used as heating oil (if dyed)
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) (if dyed)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains (if dyed)
Diesel fuel used for other non-highway purposes (if dyed)
Fuel sold to the United States for its exclusive use

Utah

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

Vermont

Fuel for export
Kerosene
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Diesel fuel used by state and local government highway vehicles
Diesel fuel used for other non-highway purposes

Virginia

Diesel fuel used as heating oil
Diesel fuel used by state and local government highway vehicles
Motor fuel used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation programs
Motor fuel sold and delivered to a federal, state or local tax-exempt entity

Washington

Fuel for export
Diesel fuel used as heating oil
Diesel fuel used for the operation of equipment attached to a motor vehicle
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Gasoline used in commercial fishing boats (100 gallon quantities)
Diesel fuel used in trains
Diesel fuel used for other non-highway purposes

West Virginia

Fuel for export
West Virginia Motor Fuel Excise Tax consists of a flat rate and a variable rate component. Exports, Dyed Fuel, and Propane sales are exempt from the flat rate - some other uses are Refundable

Wisconsin

Fuel for export
Kerosene
Diesel fuel used as heating oil
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities)
Gasoline used in commercial fishing boats (100 gallon quantities)
Diesel fuel used in trains
Gas & Diesel sold to and used by the US Government and its agencies
Gas & Diesel sold to and used by Urban Mass Transit companies

Wyoming

Fuel for export
Motor fuel used on a farm for farming purposes (Gasoline only & 100 gallon quantities) - gasoline 70% exemption provision
Non-highway use of undyed diesel is subject to refund