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Highway Taxes and Fees: How They Are Collected and Distributed - 2001


Alabama 19 & 17 Distributors or licensed users 20th Department of Revenue Retailer, if not licensed as a distributor must buy tax-paid fuel. Transit use is taxed, but is subject to a 4-cent exemption. The Commissioner of Agriculture and Industriesadministers and collects the 2-cent inspection fee included in the tax. The Liquefied Petroleum Gas (LPG) Board administers the tax on LPG.
Alaska 8 Dealers and users Last Department of Revenue Retailer collects the tax in the first instance when heating fuelis sold as motor fuel. Transit use is taxed.
Arizona 26 & 18 Importers, distributors and users 25th Department of Transportation, Motor Vehicle Division Transit use is taxed.
Arkansas 22.5 & 16.5 Diesel suppliers (wholesalers ordistributors) and LPG users 25th Department of Finance and Administration, Motor Fuel Tax Section
California 18 & 6 Suppliers Last Board of Equalization Transit is exempt, but is subject to a 1-cent tax on the exemptgallons used on State highways. The LPG tax is paid by theretailer or user and the tax is due on the 25th day of the month.
Colorado 20.5 Distributors 25th Department of Revenue, Motor CarrierServices Division Transit use is taxed.
Connecticut 18 Licensed motor fuel distributors 25th Department of Revenue Services Diesel fuel distributors collect the tax from retailers or usersand pay tax to the State. Transit bus use is subject to full refund. Transit use taxicabs and livery services subject to 50 percent refund. LPG, CNG, and LNG are not taxed when sold as motor vehicle fuels.
Delaware 22 Retailers, users or suppliers 25th Department of Transportation, Motor Fuel Tax Administration Licensed retailer becomes liable for the tax when fuel is placedin supply tank of user's vehicle. Licensed user who acquirestax-free fuel becomes liable for the tax when fuel is placed insupply tank of his licensed vehicle. Supplier must collect tax on delivery to unlicensed dealer or user. Transit use is taxed.
Dist. of Col. 20 Licensed importers 25th Department of Finance and Revenue Metro (transit buses), U.S., D.C. and diplomats are exempt.
Florida 25.9 & 16 Terminal suppliers, blenders,importers, and wholesalers 20th Department of Revenue Transit use is taxed; however, 19.9 cents per gallon is refundable. Nonhighway agricultural use and marine use are exempt from all taxes except a sales and use tax of 6 percent of the retail price of the diesel fuel.
Georgia 7.5 Licensed distributors (wholesalers, retailers) and licensed users 20th 5/ Department of Revenue, Motor FuelTax Unit User buys tax-paid fuel; but some users may become licenseddistributors and pay the tax directly to the State. User licensedas distributor can obtain exemption for nonhighway use.
Hawaii 16 & 11 Distributors Last Department of Taxation Transit use is taxed.
Idaho 25 & 18.1 Retailers or licensed users, including trucks Last 5/ Tax Commission
Illinois 21.5 & 19 Licensed distributors, special fuels suppliers or bulk users of special fuel 20th Department of Revenue Most nonhighway use is exempt. Transit use is exempt.
Indiana 16 Licensed suppliers, importers, andblenders 15th Department of Revenue, Special Tax Division Special fuel tax is imposed at the time of removal from theterminal rack, the tax is then passed on to each subsequentpurchaser.
Iowa 22.5 & 20 Licensed and restrictive supplier,blender, dealer, or user Last Department of Revenue Applies to undyed diesel fuel, and LPG or CNG delivered into thefuel supply of a motor vehicle.
Kansas 22 & 19 Diesel - wholesale distributors;LPG - users and dealers 25th Department of Revenue, BusinessTax Bureau Diesel tax is computed on quantities received or imported lessexempt sales. Transit use is taxed.
Kentucky 13.4 & 15 Licensed special fuels dealers(importers, wholesalers, refiners) 25th Revenue Cabinet, Motor Fuel TaxSection
Louisiana 20 & 16 Suppliers (wholesalers) 20th Department of Revenue, Excise TaxesDivision User or dealer pays tax to supplier. Transit use is taxed.
Maine 23 & 21 Suppliers (wholesalers) and users Last 5/ State Tax Assessor Licensed supplier (wholesaler) is liable for the tax and shall chargeand collect the tax. Licensed user is liable for tax on fuel boughttax free and used on the highway.
Maryland 24.25 & 23.5 Licensed sellers and users Last Comptroller, Motor Fuel Tax Division Fleet operators, if licensed and bonded as diesel users, can fueltrucks from own storage tanks and pay tax. LPG users with bulkfuel register as bonded users. All others buy tax-paid fuel. Useby mass transit administration buses and certain municipal buscompanies is exempt.
Massachusetts 21 & 13.4 Licensed special fuels suppliers 20th Department of Revenue, ExcisesBureau Suppliers may sell tax free if fuel is sold to other suppliers. Regional transit authorities are exempt.
Michigan 15 Refineries and terminals 20th Department of Treasury, Motor FuelTax Division Diesel tax is collected when fuel is sold from refinery or terminal at rate of 9 cents per gallon when sold to a licensed entity. There is a 6 cents per gallon discount if diesel fuel isdelivered into the fuel supply tank of a licensed Motor Carrier. Those motor carriers are responsible for a 21 cents per gallon Motor Carrier Fuel Tax. Credit is allowed for 9 cents paid at the pump and 6 cents for sales paid on MI purchases. Diesel fuel, when used in transit vehicles with a capacity of ten or morepersons, is allowed a full refund. The LPG tax is collected by a licensed LPG dealer.
Minnesota 20 & 15 First licensed distributor 23rd Department of Revenue, Petroleum Division Transit systems owned by cities or towns are exempt.
Mississippi 18.4 & 17 Wholesalers, retailers (distributors) 20th State Tax Commission Compressed gas users: vehicles 10,000 pounds g.v.w..and under, $100 annual fee; vehicles greater than 10,000 pounds g.v.w.. but less than 20,000 pounds, $225 - prepayment of tax; vehicles greater than 20,000 pounds g.v.w.., $300 - prepayment of tax; vehicles greater than 10,000 pounds that carry "F" or farm tag, $150 - prepayment of tax. Annual reports are required on all vehicles with a gross weight exceeding 10,000 pounds.
Missouri 17 Suppliers Last Department of Revenue, Business Tax Bureau Transit use is taxed.
Montana 27.75 Distributors 25th Department of Transportation, Administration Division Transit use is taxed.
Nebraska 23.9 Distributors and importers 20th Department of Revenue Special fuels category is now divided into a diesel and a compressed gas program. Compressed gas includes LPG and CNG.
Nevada 27.75 & 22 Licensed users or suppliers Last 5/ Department of Motor Vehicles and Public Safety, Motor Carrier Division Retailer sells tax-free fuel to licensed user and collects tax from unlicensed user. Nonhighway, government and transit use areexempt.
New Hampshire 19.5 & 18 Users Last 5/ Department of Safety Transit use is taxed.
New Jersey 13.5 & 5.25 Retailers and users   Department of the Treasury, Division of Taxation Generally, off-road use is not taxable.
New Mexico 19.5 & 6 Distributors 25th Motor Transportation Division, Operations Bureau Transit use is taxed.
New York 20.25 & 8 Registered distributors upon first salein the State 20th Department of Taxation and Finance Under certain conditions, fuel used in omnibuses and taxicabsis subject to a refund of 3 cents+F226 per gallon. Diesel fuelused in omnibuses operated in local transit service and allschool buses owned by nonpublic schools is subject to fullrefund.
North Carolina 24.3 Licensed suppliers (distributors) 25th Department of Revenue, Motor FuelsTax Division Sales to licensed user-seller (bulk user or reseller with bulkstorage) and fuel placed into the tanks of highway vehicles bysuppliers are taxed. Transit use is taxed. Public school transportation and State agencies are exempt.
North Dakota 21 Licensed dealers (wholesalers) 25th Tax Commissioner, Motor Fuel TaxSection Fuel used for heating, agricultural, privately funded industrial or railroad purposes is exempt but subject to special 2 percent excise tax; other nonhighway uses are refundable except fuel used in public contract work which is taxed. Transit use is taxed.
Ohio 22 Wholesalers and Distributors of MotorVehicle Fuel Last Tax collected by the State TreasurerMotor Fuel Laws administered by Tax Commission Tax is paid on first sale knowingly made for highway use.If final use cannot be determined, user is liable for the tax.Public transit use is refunded 21 cents per gallon.
Oklahoma 14 & 17 Suppliers (diesel)Special Fuel Dealers (propane) 25th(20th LPG) Tax Commission, Audit Division,Motor Fuel Division Tax is levied on use. Use is defined as (1) placing of fuel into supply tank of a vehicle for highway use; (2) consumption on highway of fuel imported intank of commercial vehicle. Local public buses seating ten or more are exempt from tax.
Oregon 24 Retailers or users 20th Department of Transportation Tax is paid by user for vehicles not under jurisdiction of the Public Utilities Commission (PUC). Vehicles underjurisdiction of the PUC and paying motor-carrier fees are exempt from payment of the special fuels tax. Fuel used by a publicly organized mass transportation district is subject to full refund.
Pennsylvania 30.9 & 19 Registered Distributors 20th Department of Revenue, Bureau of Motor Fuel Taxes Quantities used or sold and delivered except for dyed dieseland dyed kerosene.
Rhode Island 29 Wholesalers, retailers or users 27th Department of Administration, Divisionof Taxation, Excise Tax Section Tax is on first sale where use is known to be for internalcombustion engine. If use cannot be determined initially, userbecomes liable for tax. Public transit use is exempt.
South Carolina 16 Supplier at terminal rack 20th Department of Revenue Wholesale supplier: tax is on first sale when use is known to be for internal combustion engine. If use cannot be determined, user becomes liable for tax. Seller, user: reports filed by persons selling fuel on which tax has been paid to supplier and persons selling fuel to be used for purposes other than highway use. Transit use is taxed.
South Dakota 22 & 20 Suppliers and importers Last Department of Revenue, Motor Vehicle Division
Tennessee 17 & 14 Users 25th Department of Revenue Transit use is exempt.
Texas 20 & 15 Bonded suppliers, bonded users,diesel tax prepaid users, bonded dealers, liquefied gas tax decalusers 25th Comptroller of Public Accounts Diesel fuel suppliers collect the tax on the first taxable sale, and pay the tax to the state. The tax is then passed on in each sale so that the tax is paid ultimately by the person consuming thefuel on the highway. Permitted bonded users and diesel taxprepaid users are liable for tax on fuel bought tax-free and used on the highway.Diesel fuel used by transit companies with an exemption certificate is taxed at the reduced rate of 19.5 cents per gallon.Diesel fuel sales to suppliers, bonded and prepaid users, or thosewith a comptroller's tax exempt number are tax exempt. All salesmade into vehicle fuel supply tanks are taxable.The majority of LPG tax is collected through annual LPG vehiclepermit decal fees paid directly by the consumer. Liquefied gasdealers hold LPG tax-free and collect and pay tax to the state on sales of LPG to out-of-state licensed vehicles, and vehicles withLPG vehicle dealer permits. LPG is taxed at the rate of 15 cents per gallon.
Utah 24.5(See remarks) Licensed user-dealer Last Tax Commission No tax on special fuels defined as clean fuels, which are propane, compressed natural gas, electricity, or any fuel that meets the clean fuel vehicle standards in the Federal Clean Air Act Amendments of 1990, Title II. These exemptions require purchase of an annual exemption certificate. Publicly owned transit is exempt.
Vermont 26 Distributors Last Department of Motor Vehicles, Commercial Vehicle Operations Fuel user license required.
Virginia 16 Suppliers (distributors and someusers) 5/ Department of Motor Vehicles,Motor Carrier Services Supplier sells fuel wholesale and retail. User acquiring tax-freefuel is liable for the tax. Use in vehicles that have: two axles and a gross vehicle weight of more than 26,000 pounds,three or more axles regardless of weight, or used in combination,when the combined weight is more than 26,000 pounds gross or registered gross vehicle weight is subjected to an additiona l3.5 cents. Certain transit use is refunded.
Washington 8/ 23 Supplier (terminal rack) or importer 10th Department of Licensing, Prorateand Fuel Tax Services Cities or towns that are within 10 miles of an international border crossing or transportation benefit districts that contain an inter-national border may impose an additional local tax up to 1 centper gallon.
West Virginia 25.65 Persons who first receive fuel in State 25th Department of Tax and Revenue,Internal Auditing Division Fuel sold to urban mass transportation authorities is exempt.Purchases of 25 gallons or more for use in buses is allowed a refund of 6 cents per gallon.
Wisconsin 26.4 & 19.3 Licensed suppliers or retailers 15th Department of Revenue Diesel fuel tax is paid by the licensed supplier. For alternate fuels,including LPG, tax is paid by person who places fuel in motorvehicle tank of the user. Urban mass transportation use by common carriers is exempt.
Wyoming 14 Suppler (terminal rack) Last Department of Transportation
1/ As used in this table, special fuels are motor fuels other than gasoline and gasohol, and include diesel fuel and liquefied petroleum gases (LPG).
2/ Rates shown are as of January 1, 2001. Some of the rates shown are composites of several taxes. Where two tax rates are shown for a State, the first rate applies to diesel
fuel, and the second to liquefied petroleum gases (LPG), such as propane and butane. Many States provide for an annual fee in lieu of paying the gallonage tax on LPG.
See Table MF-121T for more detail on the composition of the rates and special permit programs for LPG. See Table MF-106 for State code citations for the taxes.
3/ Date tax is due in month following month of transfer of special fuel.
4/ Special provisions for taxation of motor fuel used in interstate operation are shown in Table MF-104.
5/ Tax is due in April, July, October and January of the following year in Idaho, Maine, Montana, Nevada, and New Hampshire (applies to users only in Maine, Montana, Nevada
and New Hampshire). In Georgia, some users with tax payments of $500 or less per year may pay annually by January 25. In Virginia, is due by the 5th day of the second month
of receipt or sale.

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