Tax paid on gasoline or special fuel used to operate a power takeoff unit (PTO) or auxiliary engine fueled from the same supply tank as the highway vehicle is refundable. The refund claim is based on only the fuel consumed by the PTO or auxiliary engine. Fuel consumed during idling time is not eligible for refund.
To claim a refund, complete Form PDR-1, Minnesota Motor Fuel Claim for Refund and attach the Form PDR-1 PTO, Power Takeoff Worksheet. Use the Power Takeoff Worksheet to calculate the PTO gallons claimed on the claim. Claims must be filed within one year of the date of purchase to qualify. All refund claims must have the original sales ticket, bulk fuel invoices, or a signed dealer affidavit available for audit at the taxpayer's location.
All PDR-1 refund claims must be filed for the whole month being claimed. A separate claim is required for each and every month in which you have a qualifying sale or purchase. Only one claim is allowed per period so if you have multiple qualifying purchases or sales they must be combined on a single form. If corrections to the original claim are necessary, an amended claim must be filed.
If the claim is for fuel purchased from a retail service station, you must keep the original sales ticket to verify the claim.
Original sales tickets must have:
name and address of dealer or retail station;
number of gallons purchased, price per gallon, type of fuel;
description or unit number of vehicle;
name and address of purchaser;
dollar amount of sale;
rate and amount of motor fuel excise tax charged, or a statement that explains Minnesota tax is included in the price;
date of purchase
The department will accept alternative records for fuel purchased, including computer or electronically generated listings, as long as they clearly provide the necessary information. If you are a company that has business in multiple states you may use your IFTA report as an acceptable backup for your PTO worksheet. For additional information, please see the guidelines for using your IFTA report.
If the claim is for fuel withdrawn from you tax-paid bulk storage, detailed disbursement records must be kept. The information this should include is:
Use of hubometers (hub meters)
A hubometer measures the actual road mileage of a vehicle. A claim for refund may be based on information provided from a hubometer or odometer and calculated miles per gallon. This information is used to determine the PTO gallons while the vehicle is stationary.
Calculation of refund
You can determine the amount of fuel subject to refund by either using the allowable percentage method or an alternate method. Whichever method you use, you must meet the recordkeeping requirements.
Allowable percentage method
The department has determined percentage amounts that represent the fuel used by the PTO unit. These percentages are based on the type of PTO unit and are applied against all the fuel in the supply tank of the motor vehicle to which the PTO is attached. The PTO worksheet details these percentages. Enter the total amount of fuel placed in the motor vehicle on the applicable line and multiply that total by the percentage to arrive at the fuel eligible for refund.
You may choose not to use the straight percentage if you can provide accurate records and documentation to substantiate the refund claim. To use another method of calculation, you must receive written approval from the department in advance.
The fuel on which this motor fuel tax has been refunded under this law may be subject to Minnesota sales and use tax. Please see Petroleum Products (Sales Tax Fact Sheet 116) for additional information.