Organic oils and other unrefined products are derived from plants or animals and not chemically processed or refined. This includes, but is not limited to, any new or used organic oils, such as waste oil, used fryer oils, fish oils, unprocessed corn oils, soybean oils and other organic oils.
These products are subject to the state Motor Fuel Excise Tax if they are:
Who pays the tax
The tax is paid by the distributor, retailer or- in some cases- the individual who uses the fuel as outlined below.
Unlicensed distributors or retailers
If you distribute or sell organic oils for use as a motor fuel in a licensed vehicle, you are responsible for paying the tax. Complete Form ORG-1, Organic Oil Motor Fuel Tax, and submit it to the Minnesota Department of Revenue along with your payment.
Licensed distributors
If you use, sell or blend organic oils for use as motor fuel in a licensed vehicle, you must report the product on Form PDA-46, Minnesota Gasoline Tax Return, and Form PDA-49, Special Fuel Tax Return.
Individuals
If you use organic oils as motor fuel in a licensed vehicle, you are responsible for the tax, unless you paid it when you purchased or received the product. If you paid the tax at purchase, keep your receipt for 3 1/2 years as proof the tax was paid.
If you did not pay the tax at the time you purchased or received the product, you must pay the tax. Complete Form ORG-1, Organic Oil Motor Fuel Tax Return, and submit it to the Department of Revenue along with your payment.
For information on how to pay your organic fuel return by phone, follow these step by step instructions.
