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Last Updated: 7/10/2017

Petroleum Tax

Aviation Gasoline Legislative Changes

The following legislative changes will affect how you report the sales and purchases on aviation gasoline that you make after June 30, 2017.

Aviation Gasoline and Dealer of Aviation Gasoline Definitions

The definition of aviation gasoline in Minnesota Statutes 296A.01, subd 7 was amended to include any gasoline that meets current or future ASTM specifications as a gasoline appropriate for use in producing or generating internal combustion engine aircraft. The new definition also includes any gasoline sold to a dealer of aviation gasoline for dispensing directly into the fuel tank of an aircraft.

Dealer of aviation gasoline (a new definition defined in M.S. 296A.01, subd. 13) means any person who sells gasoline on the premises of an airport, to be dispensed directly into the fuel tank of an aircraft.

Reporting Requirements

Distributors

Under the new law, a licensed distributor can make sales of automobile gasoline to a “dealer of aviation gasoline” delivered to a dedicated storage tank and retail pump used only for fueling aircraft at an airport at the aviation gasoline tax rate of $0.05 per gallon. 

When a distributor purchases the gasoline from a terminal, they report the purchase as a schedule 2A/2C and product code 065 or 124.

When the distributor makes the sale to the “dealer of aviation gasoline”, they report the sale as a schedule code 5XA – Gallons Sold to Airport Partial Taxed and use product code 065 or 124 to claim the $0.235 per gallon credit for the gallons of automobile gas sold to the airport for resale.

Dealers of Aviation Gasoline

The “dealer of aviation gasoline” that purchases automobile gas for resale at the airport must meet the following requirements to purchase the fuel at the aviation gasoline tax rate:

  1. The storage tank and retail pump must be dedicated to only refueling aircraft. No other sales or uses of the fuel may come out of the storage tank. Remember this fuel can only be dispensed directly into the fuel tank of an airplane.
  2. Complete and accurate sales records must be kept for all withdrawals of automobile gas being used as aviation gasoline and must include the following information:
a.     Date of sale
b.     Number of gallons sold
c.     Price per gallon of fuel sold
d.     Amount of tax being charged
e.     Name of purchaser
 f.      Tail number of aircraft

Note: If you do not follow these requirements, the “dealer of aviation gasoline” may not be allowed to make purchases at the reduced tax rate. 

Questions?

If you have questions, please contact the Petroleum Tax Unit at 651-296-0889 or petroleum.tax@state.mn.us.

 
 

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