Refunds for Diesel Powered Emergency Vehicles

You may qualify for a refund of the excise tax paid on diesel fuel used in your emergency vehicles if the vehicle meets all these conditions:  

• Clearly marked as an emergency vehicle
• Diesel-powered
• Owned by a government unit (state, city, county or municipality)

To claim a refund of tax paid on the diesel fuel, you must complete Form PDR-1, Minnesota Motor Fuel Claim for Refund.
 

There are restrictions on excise tax in state laws.

An excise tax is imposed on gasoline for propelling motor vehicles used on public highways. There is no exemption for emergency vehicles other than ambulances. To claim the refund, you must file Form PDR-1T, Transit and Ambulance Claim for Refund. (SeeMinnesota Statutes 296A.07, subd 1.)

An excise tax imposed on special fuels, such as diesel, used in licensed motor vehicles.  (See Minnesota Statutes 296A.01, subd 1 and Minnesota Statutes 296A.01, subd 29.)

Emergency vehicles using alternative fuels such as LPG, CNG, and LNG are taxable.

You must keep accurate records of all your sales tickets and invoices for at least 3.5 years.  

You must obtain a sales ticket or invoice for each purchase made during the claim period, regardless of amount. You are not required to send receipts with your claim.

The name and address of the dealer must be machine-printed or rubber stamped on each sales tickets or invoice.

Each sales ticket or invoice must be machine-numbered an show the:

• Name of the purchaser
• Date of sale
• Number of gallons
• Type of product
• Price per gallon
• Amount of tax

All refunds are based on usage and not on purchases. If you purchase fuel from retail stations, the receipts need to be labeled as to what type of equipment the fuel went into.

When dispensing fuel from a bulk tank, you must keep records that provide the date the fuel was withdrawn, the number of gallons, and a description of the equipment the fuel was used in.