Colorado Revises Motor Fuel Tax Laws – New Provisions Effective January 1, 2022
Colorado’s legislature recently revised the motor fuel tax statute to restructure the gasoline and special fuel tax. Effective, January 1, 2022, Colorado’s motor fuel tax will collected on removals of gasoline and special fuel from a registered terminal across the terminal rack and the tax will be collected on liquefied petroleum gas when placed into the fuel tank of a vessel unless otherwise exempt. The tax is also imposed on sales, imports or removal of gasoline or special fuel by bulk transfer from or to a refinery or terminal if both parties are not properly licensed and on non-bulk imports into Colorado. The provision for three tax-deferred transactions between licensed distributors is repealed.
The legislation specifically exempts sales of jet fuel and aviation gasoline to domestic and foreign air carriers from the motor fuel tax and states that such fuel products are subject to the sales tax rules. Eligible air carriers will be issued exemption certificates by the Department of Revenue to provide to their suppliers to support the exemption. Additionally, gasoline or special fuel removed from a terminal by a licensed exporter for delivery to another state is exempt from the fuel tax.
In addition to the provisions regarding the imposition of the tax and exemptions, there are revisions to the provisions related to penalties, refunds and reporting, including that all reports must be filed electronically. Reporting related penalties will be waived for tax periods between January 1, 2022 and December 31, 2022 if the taxpayer has shown a good faith effort to comply with the changes to the law.
The full text of the legislation can be found at:
Michigan Propane Tax – Effective July 1, 2021
Effective July 1, 2021, all sales of propane to Michigan propane companies or propane transported to Michigan is subject to an assessment of 1/10 of cent per gallon. Assessments should be remitted to the Michigan Propane Commission, payable to the Michigan Propane Gas Association. All payments should specify the number of gallons and companies with respect to which the assessment is paid.
Indiana Departmental Notice #43 – Rates for Gasoline License and Special Fuel License Taxes (Effective July 1, 2021)
Exports to Mexico – Proof of Export, Proof of Product & the Joint and Several Liability of Terminal Operators
South Carolina Guidance Regarding Exports of Fuel to Georgia During Fuel Tax Suspension
The South Carolina Department of Revenue has advised that during the pendency of the Georgia fuel tax suspension (May 10 – 22, 2021) removals of fuel from a South Carolina terminal at the rack for export to Georgia are not subject to South Carolina tax. Instead, bills of lading for exports should have a Georgia destination and invoices should bill the Georgia tax at $0 and reference the Georgia Executive Order suspending the tax. The South Carolina Motor Fuel Supplier selling at the terminal rack would report these transactions on Schedule 7B of their South Carolina Motor Fuel Supplier Monthly Return: “Gallons Removed For Export (Destination State Tax Exempt)”.
Georgia Extends Fuel Tax Suspension
Georgia has extended the suspension of its motor fuel tax collection through May 22nd: https://dor.georgia.gov/document/document/mft-2021-01-suspension-georgia-motor-fuel-taxes/download.