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Gasoline and Special Fuels Pre-Blended with Additives
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Petroleum Tax Fact Sheet 125
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Gasoline and special fuels that are pre-blended with additives are subject to the Minnesota Motor Fuel Excise Tax.
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Additives are chemicals that are pre-blended with gasoline or special fuels and offered for sale at retail locations. When additives are added to these fuels, it extends the volume of fuel offered for sale and what is burned in an internal combustion engine.
Because they are a blended with gasoline or special fuel, they are subject to the Minnesota Motor Fuel Excise Tax.
Examples of these types of additives and these pre-blended fuels offered for sale include:
- 40:1 2-cycle mix
- 50:1 2-cycle mix
- Anti-gel conditioner in diesel fuel
- Other types of fuel conditioner or product that would extend the volume of the product
If you purchase these products and you are the first licensed distributor receiving these products in Minnesota, you must report the purchase of the product and pay tax on your monthly tax return.
You or your supplier must report the schedule codes and product codes on these purchases as:
| Purchases |
Codes to Report |
|
| Purchases from a Minnesota location |
Schedule code 2A |
|
| Purchases imported into Minnesota |
Schedule code 2C |
|
| Gasoline products |
Product code 065 |
|
| Undyed diesel fuel products |
Product code 160 |
|
| Dyed diesel fuel products |
Product code 228 |
|
Note: If you are not the first licensed distributor, your supplier should be charging you tax on your invoices, and they would report the tax due on their monthly tax returns.
If you receive a refund of petroleum taxes paid, you may be required to pay Minnesota Use Tax on those purchases.
The fuel on which petroleum taxes have been refunded is subject to Minnesota Sales and Use Tax, unless specifically exempted by law.
For more information, go to Sales Tax Fact Sheet 116, Petroleum Products.
Some fuel is exempt from Sales and Use Tax based on how it is used.
Some examples of qualifying uses include:
- Agricultural production
- Industrial production
- Certain taxable services or ambulance services
- Certain fire trucks or emergency rescue vehicles
- Qualifying law enforcement vehicles operated by state and local governments using special fuels
