News Alerts

New York Increases Prepaid Sales Tax on Motor Fuel

Effective December 1, 2021, New York has increased the tax rate for the prepaid sales tax on motor fuel. The new rates are:

Region 1 – $0.18 per gallon

Region 2 – $0.18 per gallon

Region 3 – $0.17 per gallon

Distributors should use the new rates to compute the tax held on any gasoline in inventory as of November 30, 2021. The new rates need not be used for inventory of diesel as of November 30, 2021. Full details can be found in Notice N-21-6:  https://www.tax.ny.gov/pdf/notices/n21-6.pdf

Changes to Iowa Motor Fuel Reporting – Effective November, 2021

The Iowa Department of Revenue has established a new, online portal for filing taxes, called GovConnectIowa. Beginning November 2, 2021, all returns, reports, payments and refund claims must be completed using GovConnectIowa. More details can be found at: https://tax.iowa.gov/important-changes-coming-motor-fuel-tax

Vape Update – USPS Issues Final Rule Banning Vape Products Being Sent Through U.S. Mail

The U.S. Postal Service has issued a final rule banning vape products (both nicotine and cannabis) from being shipped via U.S. Mail. The ban took effect on October 21, 2021 when the final rule was published in the Federal Register. The ban prohibits the use of the U.S. Mail to ship vaping products to residential addresses. There is an exception for intra-state deliveries within the states of Alaska and Hawaii. The rule follows the passage of the Preventing Online Sales of E-Cigarettes to Children Act which was passed in December 2020. The law says that the Postal Service may not deliver to a residence “(1) any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device; and (2) any component, liquid, part, or accessory of an ENDS, regardless of whether sold separately from the device.” Vaping devices used with cannabis oil or concentrates, and their components and parts, are banned from being shipped through U.S. Mail, along with nicotine vaping products, including e-liquid. The rule makes no distinction between products made for use with tobacco-derived or synthetic nicotine.

The new rule does exempt business to business shipments from the ban. However, companies wishing to use the U.S. Mail for business to business shipping will need to be approved by USPS before any shipments can be mailed. Additionally, private individuals may ship up to 10 packages to another individual during a 30-day period. The transactions must be non-commercial in nature, weigh no more than 10 ounces each and be shipped using specified services requiring adult signature at delivery.

More details can be found at the USPS website at: https://pe.usps.com/PACTAct/Index

District of Columbia Transportation Surcharge

Effective October 1, 2021, the District of Columbia Transportation Surcharge on motor fuel sold by an importer or user, or used for commercial purposes has been increased to $0.103 per gallon. The rate will be increased annually beginning October 1, 2022.

STATE TAX CHANGES – OCTOBER 2021

This post has been updated, due to typos corrected under California.