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600 E. Boulevard Ave.
  Bismarck, ND 58505-0599
  701.328.7088 phone
  701.328.3700 fax
  877.328.7088 toll-free

Fuel Taxes Frequently Asked Questions

Q: What are the current North Dakota motor fuel tax rates?

Q: Who is required to apply for a motor fuel license?

Q: How are motor fuel dealer licenses obtained?

Q: What are the motor fuel reporting requirements?

Q: Does a dealer holding a valid motor fuel dealer's license need to contact the Motor Fuel Tax Section when the business is sold?

Q: Can a consumer get a refund of the state's motor vehicle fuel taxes?

Q: Can a consumer get a refund of the state's special fuel taxes?


Q: What are the current North Dakota motor fuel tax rates?

A: The current North Dakota motor fuel tax is $.23 per gallon for motor vehicle fuel (gasoline and gasohol).

The special fuel tax rate is also $.23 per gallon. Special fuel includes clear diesel, soy, kerosene, propane, compressed natural gas and other special fuels.

$.04 per gallon is imposed on dyed (red) diesel, biodiesel, and kerosene and on CNG, waste oil, and soy oil and other blending components sold for uses other than in a licensed vehicle. A 2% tax is imposed on LPG for uses other than in a licensed vehicle. Effective January 1, 2008, the tax rates were reduced for special fuels sold for use as heating fuel to 1% for LPG and $.02 per gallon for all other special fuels. Effective July 1, 2009, all special fuels sold for use as heating fuel are exempt from tax. The special fuel excise tax is not subject to refund.

Aviation gasoline and jet fuel tax rates are $.08 per gallon.

For a tax rate chart go to http://www.nd.gov/tax/fuel/pubs/ndfueltaxrates.pdf or contact the Motor Fuel Tax Section at 701.328.3657.

For federal fuel tax rates and federal fuel tax issues, contact the IRS.


Q: Who is required to apply for a motor fuel license?

A: All companies that import into or export out of ND (exclusive of pipeline activity), make bulk deliveries, and are retailers located on a reservation subject to a Tribal Motor Fuel Agreement. This includes refiners, terminal operators, suppliers, importers, exporters, distributors, and special fuel retailers.


Q: How are motor fuel dealer licenses obtained?

A: Contact the Motor Fuel Tax Section 701.328.3382 to request forms or go to the Fuels Forms page http://www.nd.gov/tax/fuel/forms/. A general information form plus separate applications are required for motor vehicle fuel (gasoline, gasohol, and aviation gasoline), special fuels (diesel fuels, heating fuels, CNG, kerosene but not liquefied petroleum), and liquefied petroleum (propane). License fees are $20.00 per license application. The Tax Commissioner will determine the amount of bond or other security required to obtain licenses.

North Dakota law requires that all corporations, limited partnerships, limited liability companies and limited liability partnerships first obtain a Certificate of Authority from the North Dakota Secretary of State. Inquires regarding the Certificate of Authority should be directed to the North Dakota Secretary of State at 701.328.4284. Additional information is available on the web at http://www.nd.gov/sos.


Q: What are the motor fuel reporting requirements?

A: All holders of a motor fuel dealer license are required to file a monthly motor fuel report detailing fuel purchase and sale activity. The Tax Commissioner requires the monthly reports to be filed electronically using either the Excel spreadsheet template provided by this office or using electronic data interchange (EDI). The electronic reports are submitted via a secure web application.

The deadline for filing the monthly reports is the 25th of the month following the month of activity (i.e., May activity reporting is due by June 25). Payments for electronic reports can be submitted electronically via EFT or by check accompanied by a voucher.

An application for electronic filing must be submitted and a registration process must be completed prior to submitting electronic reports.

The electronic filing registration application, monthly reporting forms, and the registration and forms instructions are available on the web at http://www.nd.gov/tax/fuel/elecfiling/formsinstr.html. For questions and additional information contact the Motor Fuel Tax Section at 701.328.3126.


Q: Does a dealer holding a valid motor fuel dealer's license need to contact the Motor Fuel Tax Section when the business is sold?

A: Yes. The dealer is required to file a final tax report and cancel the active licenses.


Q: Can a consumer get a refund of the state's motor vehicle fuel taxes?

A: Yes. Consumers who purchase gasoline or gasohol may file a claim for a refund if they paid the $.23 per gallon tax and used the fuel in nonlicensed equipment for an agricultural, industrial, or government purpose. Pickups and trucks are considered licensed motor vehicles; failure to license these vehicles does not qualify them for a refund.

A refund of tax is available for purchases by Native Americans on the reservation of enrollment if a tribal motor fuel tax does not exist.

A refund of tax is available for fuel purchased by a Federal government agency or local governments for road construction or maintenance purposes.

A refund of tax for a Tribal Government Agency is available with the exception of fuel purchased on reservations with Tribal Motor Fuel Tax Agreements.

A refund of tax is available for fuel purchases used in emergency medical service vehicles.

The claim may be filed during the calendar year in which the fuel was purchased if the net amount of the refund is $400 or more. Otherwise, the claim may be filed at any time between January 1 and June 30 of the year after the year during which the fuel was purchased.

Forms for filing claims for refund may be obtained by contacting the Motor Fuel Tax Section 701.328.3126. Refund claim forms are also available on this web site on the Fuels Forms page http://www.nd.gov/tax/fuel/forms/ under the heading Fuel Tax Refund Claim Forms.


Q: Can a consumer get a refund of the state's special fuel taxes?

A: The 1999 Legislature repealed special fuel tax refunds on diesel fuel and liquefied petroleum gas products for industrial, agricultural and local government use.

A refund of special fuel tax is available for purchases by Native Americans on the reservation of enrollment if a tribal motor fuel tax does not exist.

A refund of tax is available for special fuel purchased by a Federal government agency.

Tribal Government Agencies can receive a refund on special fuel with the exception of clear fuel purchased on reservations with Tribal Motor Fuel Tax Agreements.

A refund of tax is available for fuel purchases used in emergency medical service vehicles.

Forms for filing claims for refund may be obtained by contacting the Motor Fuel Tax Section 701.328.3126. Refund claim forms are also available on this web site on the Fuels Forms page http://www.nd.gov/tax/fuel/forms/ under the heading Fuel Tax Refund Claim Forms.


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