State Tax Changes – October 2019

Sep 26, 2019

ARKANSAS

Effective October 1, 2019 Arkansas will impose a wholesale sales tax on fuel. The tax is imposed on dealers of motor fuel and special fuels and is collected by distributors. The rate of tax will be $0.03 per gallon for gasoline and $0.06 per gallon for diesel

(https://www.dfa.arkansas.gov/images/uploads/exciseTaxOffice/2019MotorFuelsTaxRateAnnouncement.pdf)

The rate is determined by multiplying the 12-month wholesale sales price of motor fuel for the  period from January 1, 2018 through December 31, 2018, by 1.6%. This rate will then converted to a cent-per-gallon amount, and be effective for the period from October 1, 2019 through September 30, 2020. Beginning July 1, 2020, and each July 1 thereafter, the Director will calculate a new rate of tax using the 12-month average wholesale selling price of motor fuel for the period from January 1 through December 31 of the immediately preceding year multiplied by 1.6% and converted to a cent per gallon amount, and that rate will be effective for the 12-month period beginning on October 1 of the year in which the calculation is made, and ending on September 30 of the following year.

 

INDIANA

Indiana has set the gasoline use tax rate for the period October 1 – October 31, 2019 at $0.134 per gallon.  The rate is adjusted monthly.

 

MASSACHUSETTS

Massachusetts has announced tax rates for 4Q 2019.  There are changes to the rates for Liquefied Petroleum Gases, Aviation Gasoline and Jet Fuel

 

 

Fuel Type

 

Tax Rate

 

Gasoline $0.24 per gallon
Diesel $0.24 per gallon
Aviation Gasoline $0.319 per gallon
LPG and Propane $0.161 per gallon
Jet Fuel $0.104 per gallon

 

MICHIGAN

Effective October 1, 2019 Michigan’s prepaid sales tax on gasoline will be $0.138 per gallon and the prepaid sales tax on diesel will be $0.152 per gallon.  These rates are adjusted monthly and typically announced at the beginning of the prior month.

 

NEW JERSEY

New Jersey’s petroleum products gross receipts tax rates for the period October 1, 2019 – December 31, 2019 have been set at $0.309 per gallon for gasoline and LPG, $0.35 per gallon for diesel, $0.124 per gallon for fuel oil and $0.04 per gallon for aviation fuel.  Full details can be found at: http://www.state.nj.us/treasury/taxation/pdf/other_forms/petroleum/Petroleumgrosstax.pdf

 

OHIO

The Ohio Department of Taxation has issued the average wholesale price of fuel to be used when determining the gross receipts of a supplier subject to the petroleum activity tax (“PAT”) for the period October 1, 2019 – December 31, 2019.  The average wholesale prices are $1.916 per gallon for gasoline, $1.961 per gallon for diesel and $0.583 per gallon for propane.  With the PAT rate set at $0.0065, this makes the PAT for the fourth quarter of 2019 $0.012454 per gallon for gasoline, $0.0127465 per gallon for diesel and $0.0037895 per gallon for propane.

VERMONT

Vermont’s fuel tax rates for the period October 1 – December 31 2019 are $0.0444 per gallon for the MFTIA and $0.134 per gallon for the MFTA.