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Exemption and Refund Provisions of State Gasoline Taxation – 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

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

Alabama18TaxedEx (4)2.7 Taxed TaxedTaxed (14)ExEx State, taxed (18) local taxed (2) State, taxed (18) local taxed (2) 12 (Once per 12 months.) Use by charitable organizations and foreign
Alaska 8/8Ref (6) Ref (6)4.7 Taxed Ref (6)HighwayExExExEx12Use in public utility plants and by charitable
Arizona 9/18 Ref Ref 5 Ref (11) Taxed RefTaxedRefTaxedRef12Use in watercraft is not refunded. One refund
Arkansas 9/21.5 Taxed TaxedEx Taxed TaxedTaxed TaxedTaxedTaxed12 (AfterUse by local buses is subject to full refund. Aviation
California 9/ 10/18RefRefTaxedRefTaxed RefTaxedRef36Use in boats is not refunded, except when operated
Colorado22RefRef6TaxedRefRefExExExRef12State Department of Transportation
Connecticut25RefRefExRefRefEx / RefEx / RefEx / RefRef / ExMarch 31 ofFuel imported by manufacturers licensed as
Delaware 11/23RefRef0.23RefTaxedRefExExExEx12Use in volunteer fire department vehicles and in
Dist. of Columbia20TaxedTaxedTaxedTaxedTaxedExExExExUse by publicly owned and operated local transit
Florida 8/ 11/ 12/ 13/ 15.6Taxed Ref (11.6)6.9TaxedTaxedTaxedExExRef (11.6)Ref (11.6)60Use by city transit systems is subject to refund
Georgia7.5TaxedRef (6.5)7.5Ex (6.5)TaxedTaxedExExTaxedTaxed18, AgricultureAviation exemption is on sales to licensed dealer only.
Hawaii17TaxedRef (16)*2TaxedTaxedTaxedExExTaxedTaxedSee
Idaho25RefRef or credit5.5TaxedTaxedRefTaxedRef TaxedRefCalendar yearAgricultural use may be claimed as a refund or
Illinois19 Ref Ref ExExRefExExTaxedRef24Sales to public utilities which own and operate buses
Indiana 18RefRefRefRefRef (non-ExExTaxedRef3 YearsNonhighway use by distributors is exempt. Use by
Iowa20.7RefRef8TaxedTaxedTaxedRefRefRefRef36In lieu of making a refund claim, the fuel tax on
Kansas 14/24RefRefExTaxedNonhighway,ExExTaxedRef12
Kentucky 8/ 11/19.6TaxedExempt orRefTaxedTaxedExExTaxedTaxedUp to 4 YearsAll must pay the 1.4-cent environmental fee included
Louisiana 8/ 9/ 13/ 15/20TaxedRefRef TaxedTaxedEx Ex TaxedTaxed6Federal use exempt for lots in excess of 6,000 gallons
Maine27.6 Ref (26.6) Ref (26.6)Ref (23.6) Taxed Ref (26.6)ExExREFREF12Use in local transit buses is subject to full refund.
Maryland23.5RefRef7TaxedTaxedRefTaxedEx or RefTaxedTaxed3 (For July-Uses in equipment of volunteer fire companies,
Massachusetts 11/21RefRef24.3TaxedRefExExTaxedRef24 (6, Marine;
Michigan 11/19RefRef3Ref (1.5)TaxedRef nonhighwayExExExEx18School bus transportation of students to/from educational
Minnesota 16/ 17/20RefEx5Ref TaxedRefExExTaxedRef12 (3.5 afterNo refunds allowed for snowmobile and marine use.
Mississippi18.4Ref (11.6)Ref (11.6)6.4Ref (11.6)TaxedTaxedTaxedExTaxedRef (11.6)36
Missouri17RefRef or Ex9Ref 8/TaxedRefEx or RefExTaxedRef12 or April 15
Montana 9/ 17/27RefRef (12)4TaxedRefRef TaxedRef TaxedRef14
Nebraska 11/23.0Ref (19.5)Ref (19.5)5TaxedHighway TaxedExExTaxedNonhighway3Gasoline used by accredited flying schools is
Nevada 9/ 17/24.75TaxedTaxed10.5TaxedRefRef TaxedRef TaxedRef6Motorboat use is not refunded. Farmers
New Hampshire18RefRef4TaxedRefRefExExRefEx12
New Jersey10.5RefRefRefTaxedRefExExRefRef6Buses paying monthly franchise tax to municipality,
New Mexico18.875RefRefRefRefRefExExTaxedRef6No refunds allowed for motorboat or highway
New York 10/ 11/22Ref (8)Ref5.6Ref (8)Ref (8) Ref (8)ExExExEx24Pleasure boat use is not refunded. Use by qualified
North Carolina 11/29.9Ref (29.9)Ref (29.9)ExTaxedRef (29.9)ExExSeeSeeAviation exemption applies to high octane fuel only;
variable tax rate remarksremarksordinary fuel used in aircraft is subject to refund of
as of 1/1/08 - 12.4 29.9 cents, tax less sales tax due. State agency and
North Dakota 8/23TaxedRef (12)8RefTaxedTaxedExExTaxedTaxed6 (After end of Dyed fuel, at the $.04 rate, may be used in State, county
Ohio28RefRefExRefRefExExTaxedRef12Public transit use refunded at 27 cents per gallon.
Oklahoma16 Taxed Ref (13.92)0.0008ExTaxedTaxedTaxedTaxedLocal, ExLocal, Ex36Use in school buses operated by (Public) school districts
Oregon24RefRefRefRef (17)RefTaxedRefTaxedRef15
Pennsylvania 11/ 18/31.2TaxedRef5.3TaxedTaxedTaxedExExExEx36Transit use is taxed, except for publicly owned
Rhode Island 11/29 TaxedRefExTaxedTaxedExExTaxedTaxed8Public transit use and railroad equipment operated
South Carolina16TaxedRefExTaxedTaxedExExTaxedTaxed36Use in State owned school buses and commercial
South Dakota 22RefRef6TaxedTaxedTaxedExExTaxed Ref15
Tennessee 11/20Taxed Ref (19)1ExTaxedTaxedExEx Ex Ex 3 (After calendar
Texas20Ref (98 %)Ref (98 %)20RefRef (98 %)TaxedExExTaxedRef (98 %)12Aviation gasoline is subject to the state motor fuel
Utah24.5TaxedRef4 forTaxedTaxedTaxedExExExEx3 months for
Virginia17.5RefRef (17)5TaxedTaxedRefExExExEx12Use by volunteer fire departments, volunteer rescue
Virginia (continued) refund of 16 cents of the 17.5 cents tax. Claimant
Washington 36RefRef11ExRefRefTaxedRef 9/TaxedRef13Aviation exemption applies to certified air carriers,
West Virginia 32.2RefRef Ex TaxedTaxedTaxedEx TaxedTaxedQuarterlyUse by local buses is subject to refund of 6 cents.
Wisconsin 11/30.9Ref or ExRef or Ex6ExTaxedRefExExTaxedRef12Urban transit use by common carriers is exempt.
Wyoming 16/14TaxedEx (70 %)7TaxedTaxedTaxedTaxedTaxedTaxedOne yearUniversity of Wyoming, community colleges, and

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.

Page last modified on November 7, 2014
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