Motor Fuel Data and the Highway Trust Fund

Highway Taxes and Fees 2008

Exemption and Refund Provisions of State Gasoline Taxation 1/

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

Table MF-105

Status as of January 1, 2008

1/ For purposes of brevity, refunded and exempt have been abbreviated as 'Ref' and 'Ex', respectively. For those that are granted partial exemptions, the portions of those refunded or exempt is shown in parentheses. In addition to the classes of refunds or exemptions listed, all States grant exemptions or refunds to distributors on export sales, purchases of tax-paid fuel, previous overpayment, etc., to avoid duplication of payment. See Table MF-102 for provisions concerning special fuels. Table MF-103 shows the procedures regarding allowances for losses in storage and handling, losses by destruction and expense of collection. See Table MF-104 for provisions concerning interstate motor carrier fuel use.

2/ See Table MF-121T for more detail on gasoline and gasohol tax rates and sales tax information.

3/ Only the aviation gasoline tax rates that differ from the prevailing tax rates in column (1) are shown in this column.

4/ Use in motor vehicles on public highways is taxed in all States.

5/ In most States which exempt motor fuel purchased by the Federal Government, there is also a provision for refund of the tax if tax-paid fuel is purchased.

6/ Includes Federal nonhighway and military use.

7/ Unless noted otherwise, the exact time periods specified by statute or regulation are given in months (i.e. 30 days = 1 month, 45 days = 1.5 months, 1 year = 12 months, 'by March 31 for preceding calendar year' = 3 months after calendar year, etc.). The time limits allowed for uses not listed on this table (see footnote 1) may differ from those shown in this column.

8/ Special provisions for specific nonhighway uses: in Alaska, marine use of gasoline and special fuel is taxed at 5 cents per gallon, others partially refunded as follows: 11.6 cents of the 15.6 cent tax for commercial fishing use in Florida; full refund of tax used in motor boats in Kentucky; full refund of the 20 cents tax for gasoline used in commercial fishing boats only in Louisiana; 19 cents of the 20 cent tax is refunded for industrial use in North Dakota. Aviation gasoline in Missouri is fully refunded if used for commercial or agricultural purposes.

9/ In Arizona and Montana, Federal military highway use is taxed, while nonhighway use is refunded. In Arkansas, sales to official U.S. Government agencies for use in official U.S. Government vehicles is exempt. In California, Louisiana, and Washington, quantities sold to the armed forces for use in aircraft or ships or for use outside of the State are exempt. In Nevada, sales for use in vehicles of the armed forces are exempt.

10/ Closed portions of roads under repair are not public highways.

11/ Variable Rate as of January 2008. Wisconsin's motor fuel tax rate in no longer variable effective with the change that occurred on April 1, 2006. In

11/ Refunds available for fuel consumed for an exempt purpose upon which the tax was previously paid. Leaded racing fuel is now exempt.

12/ Rate consists of a fixed rate of 4 cents per gallon plus a base rate of 6.9 cents per gallon of motor fuel which is indexed to the CPI-U and currently yields a 11.6 cents per gallon rate. There is an additional State imposed State Comprehensive Enhanced Transportation System (SCETS) Tax that varies by county from 5.3 to 6.4 cents per gallon which is not included in rate shown.

13/ Gasoline is tax exempt if purchased in bulk lots of over 300 gallons in Wyoming; 500 gallons or more in Florida (from a terminal supplier or wholesaler) and West Virginia; and 6,000 gallons or more in Louisiana.

14/ It is exempt if contractor holds a cost-plus-fixed-fee contract with the U.S. Government.

15/ Aviation gasoline sales in these States are generally exempt when purchased in large quantities or at specified airports.

16/ Aviation refunds are on a sliding scale ranging from 15 cents per gallon on the first 50,000 gallons to 19.5 cents per gallon over 200,000 gallons in Minnesota. Counties or municipalities refund 2 cents per gallon to consumers on fuel used at their publicly owned airports in excess of 10,000 gallons per month in Wyoming.

17/ No refunds are paid on fuel used in highway construction or maintenance.

18/ Thirty-six months after the end of the fiscal year for agriculture, volunteer fire, ambulance, etc., and political subdivisions.

19/ The 4.85 cents per gallon consumer sales and service tax is not refundable and aviation use is not exempt.

20/ In Hawaii, the 16 cents is the refund amount per gallon for non-highway agricultural use.

21/ The 16 cents in the refund account per gallon for non-highway agriculture use.

22/ The 11.7 cents per gallon variable rate component/consumer sales and services tax is not refundable and aviation use is not exempt.

23/ Within 36 months from the last day of the month following the period within which the end user purchased the fuel.