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Last Updated: 10/26/2017

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Petroleum Taxes

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  • When do I charge Petroleum Tax on B00 (100% biodiesel)?Back to top

    B00 follows the same tax and reporting rules as undyed diesel fuel. The first licensed distributor must report and pay the Petroleum Tax on all purchase of this product.

    If B00 is blended with a dyed product, the blender may claim a refund of the tax previously paid on the product; use Form PDR-1, Minnesota Motor Fuel Claim for Refund in order to receive the refund.​

  • How do I report biodiesel on my Petroleum Tax return? Back to top

    It depends on if the fuel is dyed or undyed, as outlined below:

    • B00 (100% biodiesel)- Report as an undyed diesel product, using product code 284.
    • D00 (100% dyed biodiesel)- Report as a dyed diesel product, using product code 290.​

  • Do I need to file a return even though I have no liability?Back to top

    Yes. You must file a return for each month that your license is in effect. If you have no liability, you still need to file a return with zero gallons reported by the due date.​

  • What are Minnesota's requirements for reporting gallons of fuel on my Petroleum Tax returns?Back to top

    You must report gasoline purchases by gross volume (and not net volume). View the statute, M.S. 296A.15

    You must also report the following types of fuel by gross volume (except for sales or transfers between fuel refineries and/or terminals): No. 1 and No. 2 diesel fuel oil or heating fuel oil, kerosene, denatured ethanol, and biodiesel. View the statute, M.S. 239.79.
     
    Report all other fuel as listed on your original invoice.

  • How do I file an amended return?Back to top

    If you file a monthly EDI file through the e-Data Exchange system, you must submit a new (amended) EDI file for the month you wish to amend. Depending on the changes you may have a new credit or liability. If you have a new liability you will have to pay the additional tax when you amend your file by your normal payment method.

    If you don't file an EDI file monthly, you will have to amend your previously filed returns in our e-Services system. After you login to e-Services, open ("view") the return you want to amend and click the "change" button. This lets you change your tax inputs and will result in either a new credit or liability. You must also submit an amended monthly detail file for that reporting period. ​

  • What records should I keep for Minnesota tax purposes, and how long should I keep them?Back to top

    Fuel terminals must keep records of receipts, disbursements, and inventories. For more information, see MN Rules 8125.0200.

    Distributors, dealers, bulk purchasers, special fuel dealers and users of special fuel must keep records of all purchases, transfers, sales, and use of petroleum products and special fuel. This includes copies of all sales tickets, customer activity reports, and supplemental reports to verify all credits and deductions taken. Accurate inventories should be available as reported on Form PDA-78, Petroleum Product Reconciliation. For more information, see MN Rule 8125.0400
     
    You must keep and maintain records for at least 3 1/2 years. View the MN Statute 296A.19.​

  • What is the Petroleum Tank Cleanup Fee?Back to top

    The fee is 2 cents per gallon- $20 per 1,000 gallons- on all petroleum products received in this state by a licensed fuel distributor.
     
    The first licensed distributor who is responsible for reporting the gallons to the Minnesota Department of Revenue must pay this fee when it is in effect. The fee is based on all gallons received into Minnesota and that are placed into storage for use in this state.
     
    Revenue from this fee goes to the state Petroleum Tank Fund, which helps pay for the prevention and cleanup of leaks from petroleum storage tanks. The fee is temporarily imposed for a 4-month period whenever the balance of the fund falls below $4 million.​

  • How do I make a payment when I have received a bill? Back to top

    If you have received a Petroleum Tax bill from the Department of Revenue, you must log in to our e-Services system to make a payment. You may pay the bill by accessing your Petroleum Tax account, or by using the "Make a Payment" link and entering the Letter ID on the bill.​

  • I disagree with a Tax Order from the Department of Revenue. How do I appeal?Back to top

    Refer to the appeal information that was included with the Tax Order. For more information, see the Taxpayer Rights.​

  • How do I change my payment information? Back to top

    You can change your payment information when making a payment through our e-Services system. For step-by-step payment instructions click the "Help" button on the e-Services home page. ​