State Gasoline Tax Loss and Expense Allowances – Highway Taxes and Fees 2008 – Motor Fuel Data and the Highway Trust Fund – OHPI – FHWA

Motor Fuel Data and the Highway Trust Fund

Highway Taxes and Fees 2008

State Gasoline Tax Loss and Expense Allowances

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

Table MF-103 Part 2 of 2

Status as of January 1, 2008

STATE	REMARKS
Alabama	Allowance for loss due to evaporation shrinkage is 2 percent on all gasoline taxes paid, not to exceed $500 in any one calendar month. The collection allowance is 2 percent of the first $5,000 of tax owed and 1 percent of all taxes over $5,000 not to exceed $400 in any one calendar month. These allowances apply to 16 cents of the 18 cents per gallon gasoline tax.
Alaska	Allowance for collection expenses is 1 percent of tax due, not to exceed $100 per month.
Arizona
Arkansas	Allowance for losses in storage and handling is 3 percent of first million gallons only and none in excess thereof.
California
Colorado	Tax may be refunded or credit may be given on losses beyond the control of the distributor of tax-paid fuel in excess of 100 gallons. Distributors receive allowance of 2 percent for handling and collection expenses, but must pass on 1 percent to retailers. The 0.5 percent allowance is to wholesalers for collection expenses and bad debts and is calculated after deduction of the 2 percent allowance for handling and collection expenses.
Connecticut	All actual losses must have complete documentation.
Delaware	Allowance for losses in storage and handling is limited to a maximum of 1 percent (gasoline) or 0.5 percent (special fuel) of the beginning inventory plus receipts over a 12-month period.
Dist. of Col.
Florida	Terminal supplier granted a 0.2 percent collection allowance against the 15.6 cents per gallon state tax on gasoline if terminal supplier has allowed 50 percent of such collection allowance to the licensed purchaser (a wholesaler).
Georgia	Allowance is made on 2% of the first 5.5 cents paid by the retailer to the supplier, and 1% of the first .075 cents paid by the wholesaler
Hawaii
Idaho
Illinois	Allowance for collection expenses is a flat rate of 1.75 percent.
Indiana	Allowances for actual losses apply to gasoline only. Gasoline distributors claim a flat percentage allowance of 1.6 percent for losses in storage and handling and collection expenses. Special fuel dealers claim a flat 1.6 percent for losses in handling and collection expenses.
Iowa	Distribution allowance of .4 percent is retained by supplier, and 1.2 percent is credited back to the distributor.
Kansas	Allowance is made for losses of 100 gallons or more by loss or destruction beyond the control of the distributor.
Kentucky	Allowance of 0.75 percent is the maximum allowance to terminal operators for evaporation, shrinkage, or unaccountable losses.
Louisiana	Allowance is made for losses of 100 gallons or more by loss or destruction by fire or accident. The 3 percent allowance applies to only 1 cent of the tax. There is also an allowance to bonded jobbers on 4 cents of the tax.
Maine
Maryland	Allowance for handling losses of 0,5 percent of the first 10 cents of the tax paid.
Massachusetts
Michigan
Minnesota
Mississippi	For gasoline – actual loss less 2 percent (750 gallon minimum claim), for liquefied or compressed gas – actual loss, for other fuel – actual loss (750 gallon minimum claim).
Missouri
Montana
Nebraska	No allowances for losses
Nevada
New Hampshire
New Jersey
New Mexico
New York	No allowance is made for losses in storage and handling on shipments direct from supplier to customer. Allowance is not to exceed 2 percent of taxable quantity stored.
North Carolina	Allowance for losses in handling and collection expenses may be claimed by suppliers who compute tax liability on the basis of quantity purchased. Allowance is 1 percent of the net taxable gallons.
North Dakota	Deduction for actual losses may not exceed one half of 1 percent of total gallonage purchased. Commission (collection allowance) is 2 percent of tax due for gasoline and 1 percent not to exceed $300 per month for special fuels.
Ohio	These are are temporary provisions effective through June 30, 2009.
Oklahoma
Oregon	Allowance for loss by destruction is made to licensed dealers and subdealers only.
Pennsylvania	No allowance is made for losses in storage and handling on shipments direct from supplier to customer. Allowance is not to exceed 2 percent of taxable quantity stored. Only to Pennsylvania-registered distributors. Same for retailer if retailer is part of registered distributor.
Rhode Island
South Carolina	TARE allowance refund is 0.0265 times the tax liability, not to exceed $2000 per month for domestic oil companies.
South Dakota
Tennessee
Texas	Allowance is made for losses if 100 gallons or more by fire, theft or accident. A licensed supplier or permissive supplier retains 2 percent of the tax remitted on time to the Comptroler with 1.75 percent passed onto licensed distributors who timely pay tax to the supplier or permissive supplier. Licensed importers retain two percent of the tax remitted on time to the Comptroller.
Utah
Vermont	Actual loss if tax is paid in Vermont. Percentage applies only to fuels received on which tax has not been paid in Vermont.
Virginia
Washington
West Virginia
Wisconsin	There is also an allowance of 0.1 percent to the supplier for losses in storage and handling.
Wyoming

Go to Part 1 of Table MF-103

Return to top

Page last modified on November 7, 2014