Motor Fuel Taxes

Motor Vehicle Fuel Tax (Gasoline and Gasohol)

A motor vehicle fuel tax of 23 cents per gallon is imposed on motor vehicle fuel (gasoline and gasohol) sold to retailers and consumers. Consumers who paid the 23 cent per gallon tax but used the fuel in non-licensed equipment for an agricultural purpose may obtain a full refund.  Consumers who used the fuel for an industrial purpose may obtain a partial refund of 22 ½ cents per gallon.  State and political subdivisions may obtain a full refund for all motor vehicle fuel used for construction, reconstruction, and maintenance of roads and highways.  Emergency medical services operations may obtain a full refund for motor vehicle fuel used in ambulances.

Special Fuels Taxes

Special fuels include diesel, biodiesel, kerosene, compressed natural gas (CNG), liquefied natural gas (LNG), waste oil, liquefied petroleum gas (LPG) known as propane, and soy oil and other blending components. A special fuel tax of 23 cents per gallon is imposed on all special fuels sold for use in licensed vehicles. A special fuel excise tax of 4 cents 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% special fuel excise tax is imposed on LPG for uses other than in a licensed vehicle. All special fuels sold for use as heating fuel are exempt from tax. The special fuel tax and special fuel excise tax are not subject to refund except for emergency medical services operations which may obtain a full refund for special fuel used in ambulances.

Aviation Fuel Tax

The aviation fuel tax is imposed on the sale of aviation gasoline and jet fuels at a rate of 8 cents per gallon.  Emergency medical services operations may obtain a full refund for aviation fuel used in air ambulances.