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Highway Taxes and Fees 2008

State Taxation of Special Fuels 1/

Based on information obtained from state authorities and on the law of the states

Table MF-102

Status as of January 1, 2008

Alabama 19Distributors or licensed users20thDepartment of Revenue Retailer, if not licensed as a distributor must buy tax-paid fuel. The Commissioner of Agriculture and Industries administers and collects the 2-cent inspection fee included in the tax. The LPG Board administers the tax on LPG.
Alaska 8Dealers and users LastDepartment of RevenueRetailer collects the tax in the first instance when heating fuel is sold as motor fuel. Transit use is taxed.
Arizona 26Licensed Suppliers27thDepartment of Transportation, Motor Vehicle DivisionDyed diesel consumed by school buses and local transit systems are subject to tax at the 18 cents per gallon.
Arkansas 22.5Diesel suppliers (wholesalers or distributors) and LPG users25thDepartment of Finance and Administration, Motor Fuel Tax Section LPG non-resident users will be charged the per gallon tax of 16.5 cents per gallon. In-state users are required to obtain a annual flat fee.
California 18Suppliers / UsersLastBoard of EqualizationTransit is exempt, but is subject to a 1-cent tax on the exempt gallons used on State highways. The LPG tax is paid by the gallons used on State highways. The LPG tax is paid by the retailer or user and the tax is due on the 25th day of the month.
Colorado 20.5Distributors26thDepartment of Revenue, Taxpayer Services DivisionTransit use is taxed.
Connecticut 37Licensed motor fuel distributors 25thDepartment of Revenue ServicesDiesel fuel distributors collect the tax from retailers or users and 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 22Wholesale Distributors25thDepartment of Transportation, Motor Fuel Tax AdministrationLicensed retailer becomes liable for the tax when fuel is placed in supply tank of user's vehicle. Licensed user who acquires tax-free fuel becomes liable for the tax when fuel is placed in supply tank of his licensed vehicle. Supplier must collect tax.
Dist. of Col. 20Licensed importers25thOffice of Tax and RevenueMetro (transit buses), U.S., D.C. and diplomats are exempt.
Florida 28.8Terminal suppliers, blenders, importers, and wholesalers20thDepartment of RevenueTransit use is taxed; however, 23.8 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 8/ 7.5Tax paid by licensed distributors20th 5/Department of Revenue, Motor Fuel Tax Unit Any taxpayer who is not licensed may apply for a refund for clear diesel fuel used for non-highway use.
Hawaii 17Distributors LastDepartment of TaxationTransit use is taxed.
Idaho 25Retailers or licensed users, including trucks Last 7/Tax Commission-
Illinois 21.5Licensed distributors, special fuels suppliers or bulk users of special fuel 20thDepartment of RevenueMost nonhighway use is exempt. Transit use is exempt.
Indiana 16Licensed suppliers, importers, and blenders15thDepartment of Revenue, Special Tax DivisionSpecial fuel tax is imposed at the time of removal from the terminal rack, the tax is then passed on to each subsequent purchaser.
Iowa 22.5Licensed supplier, restrictive supplier, importer, blender, dealer, or user.LastDepartment of Revenue and FinanceApplies to undyed diesel fuel, and LPG or CNG delivered into the fuel supply of a motor vehicle.
Kansas 26Diesel - wholesale distributors; LPG - users and dealers25thDepartment of Revenue, Customer RelationsDiesel tax is computed on quantities received or imported less exempt sales. Transit use is taxed.
Kentucky 18Licensed special fuels dealers (importers, wholesalers, refiners) 25thDepartment of Revenue, Motor Fuels Tax Section-
Louisiana 20Suppliers (wholesalers)20thTaxpayer ServicesUser or dealer pays tax to supplier. Transit use is taxed.
Maine 29.6Licensed suppliers (wholesalers), Last State Tax AssessorLicensed supplier (wholesaler) or retailer is liable for the tax and shall charge and collect the tax. Licensed users is liable for tax on fuel bought tax free and used on the highway.
Maryland 24.25Licensed sellers and usersLastComptroller, MATT Regulatory DivisionFleet operators, if licensed and bonded as diesel users, can fuel trucks from own storage tanks and pay tax. LPG users with bulk fuel register as bonded users. All others buy tax-paid fuel. Use by mass transit administration buses and certain municipal bus companies is exempt.
Massachusetts 21Licensed special fuels suppliers20thDepartment of Revenue, Excises BureauSuppliers may sell tax free if fuel is sold to other suppliers. Regional transit authorities are exempt.
Michigan 15Supplier, importer, blender20thDepartment of Treasury, Customer Contact Division - Special TaxesDiesel tax rate simplified to 15 cents, except dyed diesel , which is exempt. The LPG tax is collected by a licensed LPG dealer.
Minnesota 20First licensed distributor23rdDepartment of Revenue, Special Taxes / PetroleumTransit systems owned by cities or towns are exempt.
Mississippi 18.4Wholesalers, retailers (distributors)20thState Tax CommissionCompressed 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 17Suppliers or distributors2ndDepartment of Revenue, Taxation BureauTransit use is taxed.
Montana 27.75Distributors25thDepartment of Transportation, Administration Division Transit use is taxed.
Nebraska 27.1Distributors and importers 25thDepartment of RevenueSpecial fuels category is now divided into a diesel and a compressed gas program. Compressed gas includes LPG and CNG.
Nevada 27.7Licensed users or suppliers Last 7/Department of Motor Vehicles, Motor Carrier DivisionRetailer sells tax-free fuel to licensed user and collects tax from unlicensed users. Nonhighway, government and transit are exempt.
New Hampshire 19.6Distributors (Last Licensee Model) Last 7/Department of Safety - Road Toll AdministrationTransit use is taxed.
New Jersey 13.5Retailers and users Department of the Treasury, Division of TaxationGenerally, off-road use is not taxable.
New Mexico 22.875Distributors25thMotor Transportation Division, Operations BureauTransit use is taxed.
New York 22.65Registered distributors upon first sale in the State20thDepartment of Taxation and FinanceUnder certain conditions, fuel used in omnibuses and taxicabs is subject to a refund of 3 cents+F226 per gallon. Diesel fuel used in omnibuses operated in local transit service and all school buses owned by nonpublic schools is subject to full refund.
North Carolina 29.9For diesel and kerosene, Supplier who owns the fuel as it crosses the terminal rack (Position Holder/Supplier) For alternative fuel - Alternative Fuel Provider upon use22ndDepartment of Revenue, Motor Fuels Tax DivisionThe point of taxation diesel and kerosene is the same as for gasoline-terminal rack. The point of taxation for alternative fuels is upon sale for a highway use, sale to a retailer for highway use, or to a bulk end-user for highway use.
North Dakota 23Licensed dealers (wholesalers)25thTax Commissioner, Motor Fuel Tax SectionDyed fuel used for agriculture, industrial, or railroad purposes is exempt but subject to a special excise tax of $.04 per gallon; LPG is subject to tax at the rate of 2%. Special fuel used for heating purposes is subject to tax at $.02 and 1% from January 2008 through June 2009. Beginning July 2009heating fuel is exempt.
Ohio 28Wholesalers and Distributors of Motor Vehicle FuelLast day of the monthTax collected by the State Treasurer (EFTs) and Ohio Dept of Taxation. Motor Fuel laws administered by the Dept. of TaxationTax 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 27 cents per gallon.
Oklahoma 14Suppliers (diesel) Special Fuel Dealers (propane)27th (20th LPG)Tax Commission, Audit Division, Motor Fuel DivisionDiesel taxed at the rack. LPG when used for taxable purposes.
Oregon 24Retailers or users20thDepartment of TransportationTax is paid by user for vehicles not under jurisdiction of the Public Utilities Commission (PUC). Vehicles under jurisdiction 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 38.1Registered Distributors20thDepartment of Revenue, Bureau of Motor Fuel TaxesQuantities used or sold and delivered except for dyed diesel and dyed kerosene.
Rhode Island 30Wholesalers, retailers or users 27thDepartment of Administration, Division of Taxation, Excise Tax SectionTax is on first sale where use is known to be for internal combustion engine. If use cannot be determined initially, user becomes liable for tax. Public transit use is exempt.
South Carolina 16Supplier at terminal rack 22ndDepartment of RevenueWholesale 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. Transit use is taxed.
South Dakota 22Suppliers and importersLastDepartment of Revenue, Motor Vehicle Division-
Tennessee 17At the terminal rack20thDepartment of Revenue Transit use is exempt.
Texas 20Licensed Suppliers, Permissive Suppliers, importers and blenders,'(Diesel Fuel) / Licensed Dealers,and users (LPG)25thComptroller of Public AccountsTransit use of diesel fuel is taxed, but a qualified transit company may seek a refund of one-half of one cent per gallon. The LPG tax is collected by licensed LPG dealers on fuel sold to "out-of-State" licensed vehicles, Texas vehicles licensed under IFTA and vehicles with an LPG vehicle dealer license. Users with motor vehicles licensed in Texas and equipped with a liquefied gas system are required to prepay the tax by purchasing an annual liquefied gas tax decal.
Utah 24.5 (See remarks)Licensed supplierLast 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. Gasoline considered "clean fuel" is taxed at the following rates per gallon 3/19 of rate round to the nearest penny: 4 cents (59-13-201(1)(b)
Vermont 19Licensed Distributors LastDepartment of Motor Vehicles, Commercial Vehicle Operations 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 ultimately paid by the person consuming the fuel on the highway. A Diesel Fuel Tax Exemption Certificate number can be obtained when fuel is used for official purposes by State, City, Fire Districts, School Districts, or when delivered for farm use to farm bulk fuel storage tank.
Virginia 17.5Suppliers, Importers, Blenders, Bulk User, Retailer and Provider of Alternative Fuel20th day of the second month of receipt or saleDepartment of Motor Vehicles, Motor Carrier ServicesSupplier sells fuel wholesale and retail. User cannot acquire tax-free fuel. Use in vehicles that have: two axles and a gross vehicle weight of more than 26,000 pounds 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 additional 13.5 cents. Certain transit use is refunded.
Washington 6/ 7. 34Supplier (terminal rack) or importer, or blender25thDepartment of Licensing, Prorate and Fuel Tax ServicesCities 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 cent per gallon.
West Virginia 32.2Terminal Rack / on Import 31stDepartment of Tax and Revenue, Internal Auditing Division 
Wisconsin 30.9Licensed suppliers or retailers15thDepartment of RevenueDiesel fuel tax is paid by the licensed supplier. For alternate fuels, including LPG, tax is paid by person who places fuel in motor vehicle tank of the user. Urban mass transportation use by common carriers is exempt.
Wyoming 14Suppler (terminal rack)LastDepartment 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, 2008. 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.

6/ Cities or towns that are within 10 miles of an international border crossing or transportation benefit districts that contain an international border may impose an additional local tax up to 1 cent per gallon.

7/ Effective 7/1/08, tax rates for gasoline and special fuel will increase to 37.5 cents per gallon.

8/ The State of Georgia has additional state prepaid tax rates, which varies by type of fuel. i.e. the gasoline rate is 0.110, diesel 0.123, LPG 0.074, Special Fuel 0.109. These rates are added to the 0.75 state excise tax and are collected by the wholesaler at the time of sale.