field_block:node:page:title
Gasoline and Diesel Fuel Sales to Government Units
field_block:node:page:field_subtitle
Petroleum Tax Fact Sheet 300
field_block:node:page:body
Fuel distributors may charge Minnesota motor fuel excise tax on fuel sales to state and local units of government.
field_block:node:page:field_paragraph
Fuel distributors must charge motor fuel excise tax on the total sale of undyed diesel fuel or gasoline delivered to all state or local units of government. This includes both licensed and non-licensed state and local units of government.
Dyed diesel fuel is subject to motor fuel excise tax based on whether the government unit holds a valid petroleum fuel license or not.
Licensed Units of Government
Distributors do not charge licensed state and local units of government the excise tax on the delivery sales of dyed diesel fuel.
Government units must electronically file and pay the tax on dyed diesel fuel used on the road.
Non-licensed Units of Government
Distributors must charge non-licensed units of government the excise tax for dyed diesel fuel purchased and used for taxable purposes. (do you think it necessary to include a example on taxable purposes?)
*If the unit of government has only one storage tank of dyed diesel fuel to use for on-road and off-road vehicles, distributors must charge the excise tax on the entire load of dyed diesel fuel on the sale.
If the unit of government has separate storage tanks for on-road and off-road usage, the excise tax must be charged on the on-road tank’s fuel and sales tax must be charged on the off-road tank.
There is no sales tax on dyed diesel fuel for off-road use if the government unit is exempt.
Distributors must charge the inspection fee and the clean-up fee, when in effect, on all gallons of fuel sold to state and local units of government. (does this apply to both licensed and non-licensed gov units?) (do we need a link to the rates webpage here also?)
State and local units of government are exempt from federal excise tax.
Tax Refund for Units of Government
Units of government may claim a a refund of tax charged for gallons used in off-road unlicensed equipment if dyed diesel fuel is used from a tax-paid storage tank. Government units must file Form PDR-1, Minnesota Motor Fuel Claim for Refund within one year from the date of purchase.
| If you are a: |
Motor Fuel Excise Tax Charged by Fuel Distributor |
Licensed State and Local Units of Government
(Hold a valid petroleum special fuel license) |
Undyed Diesel and Gasoline Yes
Dyed Diesel No (delivered tax free) |
Non-Licensed State and Local Units of Government
(Do not hold a valid petroleum special fuel license) |
Undyed Diesel and Gasoline Yes
Dyed Diesel Yes*
if using dyed diesel
fuel for taxable purposes |
