TAX CHANGES FOR 2020

Dec 20, 2019
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Please find attached a compilation of key state tax rate updates effective January 1, 2020.  Note that this may not cover every fuel tax related rate change.

TAX CHANGES FOR 2020

 

DELAWARE

Effective January 1, 2020, the Delaware Hazardous Substance Tax rate will be 1.0429%. The rate is adjusted annually.

FLORIDA

 Effective January 1, 2020, the Florida statewide tax rates on motor fuel (gasoline) will increase to $0.183 per gallon and the statewide tax rates on undyed diesel will increase to $0.183 per gallon. The state tax rate on aviation fuel will remain at $0.0427 per gallon. In addition, the minimum local option fuel tax on each gallon of motor fuel sold to licensed wholesalers is unchanged at $0.06 per gallon, while the $0.00125 per-gallon inspection fee is unchanged. The total statewide fuel tax for 2020 (exclusive of local option taxes above the minimum) will be $0.32325 per gallon for gasoline and $ 0.332 per gallon for diesel.

With respect to county motor fuel tax rates, the gasoline rate differs by county and can be found on the attached chart. Terminal suppliers must collect a minimum local option fuel tax in the amount of $0.139 per gallon and an inspection fee of $0.00125 per gallon on each gallon of motor fuel sold to licensed wholesalers. Wholesalers must remit to the Florida Department of Revenue the county tax rate above the minimum $0.139 per gallon local option fuel tax on motor fuel sold to retail dealers or end-users.

The pollutants tax is unchanged at $0.87 per barrel for petroleum products and $0.02 per barrel for ammonia.

Full details of the rate changes can be found at: https://floridarevenue.com/taxes/Documents/19B05- 03_chart.pdf

GEORGIA

Georgia’s fuel tax rates effective January 2020 are as follows: file:///C:/Users/Leanne%20Sobel/Downloads/State%20Excise%20Tax%20Rate%20-%20January%202020.pdf

 

Fuel Type

Tax Rate

Gasoline

$0.279 per gallon

Diesel

$0.313 per gallon

Aviation Gasoline

$0.010 per gallon

LPG

$0.279 per gallon

Special Fuel

$0.279 per gallon

 

*This list contains key State updates taking effect in 2020. This is not intended to be an exhaustive list. Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.

The prepaid local tax average retail sales prices to be collected by motor fuel distributors selling motor fuel to unlicensed entities has been set at the following rates for the period January 1, 2020 – June 30, 2020 file:///C:/Users/Leanne%20Sobel/Downloads/Prepaid%20Local%20Tax%20-%20Jan%202020.pdf

 

Fuel Type

Average Retail Sales Price

Gasoline

$2.153 per gallon
Diesel $2.554 per gallon
Aviation Gasoline $3.000 per gallon
LPG

$1.954 per gallon

Special and Compressed Petroleum Gas

$2.074 per gallon

 

ILLINOIS

 Illinois has set its prepaid sales tax on motor fuel at $0.14 per gallon for gasoline, gasohol and other motor fuels such as diesel and at $0.11 per gallon for biodiesel blends between 1% and 10%. These rates are for the period January 1, 2020 – June 30, 2020.

INDIANA

 The gasoline use tax for the period January 1, 2020 – January 31, 2020 has been set at $0.134 per gallon. The rate changes monthly.

KANSAS

The Kansas Environmental Assurance Fee is reinstated effective January 1, 2020. The fee is $0.01 per gallon imposed on all petroleum products.

MASSACHUSETTS

 Massachusetts has set its tax rates for the period January 1, 2020 – March 31, 2020 as follows:

Fuel Type

Tax Rate

Gasoline $0.24 per gallon
Diesel $0.24 per gallon
Aviation Gasoline $0.293 per gallon
LPG and Propane $0.106 per gallon
Jet Fuel $0.104 per gallon

*This list contains key State updates taking effect in 2020. This is not intended to be an exhaustive list. Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.

MICHIGAN

For January 2020, the prepaid sales tax on gasoline will be $0.126 per gallon and on diesel will be $0.155 per gallon. These rates are updated monthly.

NEBRASKA

Nebraska has set its fuel tax rates for January 1, 2020 – June 30, 2020 at $0.293 per gallon for gasoline, diesel, gasohol, ethanol and compressed fuels. The rates for aviation gasoline (0.05 per gallon) and jet fuel (0.03 per gallon) are unchanged.

NEW JERSEY

New Jersey’s petroleum products gross receipts tax rates for the period January 1, 2020 – March 31, 2020 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 https://www.state.nj.us/treasury/taxation/petroleum/rates.shtml

NEW YORK

 New York has published its petroleum business tax rates for 2020. Beginning January 1, tax rates will decrease to $0.174 per gallon for gasoline and to $0.1565 per gallon for diesel. The tax rate for jet fuel is also decreasing to $0.07 per gallon. The full schedule of tax rates are in Publication 908 which can be found at: https://www.tax.ny.gov/pdf/publications/multi/pub908_120.pdf

NORTH CAROLINA

Effective January 1, 2020 North Carolina’s motor fuel tax will decrease from $0.362 per gallon to $0.361 per gallon.

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 January 1, 2020 – March 1, 2020. The average wholesale prices are $1.798 per gallon for gasoline, $1.851 per gallon for diesel and $0.471 per gallon for propane. With the PAT rate set at $0.0065, this makes the PAT for the first quarter of 2020 $0.011687 per gallon for gasoline, $0.0120315 per gallon for diesel and

$0.0030615 per gallon for propane.

*This list contains key State updates taking effect in 2020. This is not intended to be an exhaustive list. Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.

OREGON

Effective January 1, 2020, Oregon’s motor fuel tax will increase $0.02 per gallon to $0.36 per gallon. This increase takes effect every two years through January 2024.

PENNSYLVANIA

Beginning January 1, 2020, the Oil Company Franchise Tax Rate for gasoline will be $0.576 per gallon and the tax rate for diesel will be $0.741 per gallon. These are unchanged from 2019.

The tax rates for aviation gasoline and jet fuel will be decreased to $0.059 per gallon for aviation gasoline and $0.019 per gallon for jet fuel.

Tax rates for 2020 for alternative fuels are as follows:

 

Fuel Type

Tax Rate

Ethanol $0.384 per gallon
Methanol $0.289 per gallon
Liquefied Petroleum Gas (Propane) $0.425 per gallon
E85 $0.413 per gallon
M85 $0.332 per gallon
Liquefied Natural Gas (LNG) $0.648 per diesel gallon equivalent
Compressed Natural Gas (CNG) $0.576 per gasoline gallon equivalent
Hydrogen $0.576 per gasoline gallon equivalent

UTAH

 Effective January 1, 2020 the tax rates for gasoline and diesel will increase to $0.311 per gallon. The rate for CNG, LNG and hydrogen will increase to $0.168 per GGE/DGE.

VERMONT

 Vermont has set the Motor Fuel Transportation Infrastructure Assessment (MFTIA) for the first quarter 2020 at $0.0431 per gallon and the Gasoline and Motor Fuel Tax Assessment (MFTA) for the third quarter at $0.134 per gallon.

VIRGINIA

Virginia’s motor fuel tax rates for the period January 1, 2020 – June 30, 2020 will be unchanged from the previous six month period:

 

Fuel Type

Tax Rate

Gasoline $0.162 per gallon
Diesel $0.202 per gallon
Blended Fuels (Gasoline) $0.162 per gallon
Blended Fuels (Diesel) $0.202 per gallon
Aviation Fuel $0.05 per gallon (reduced to $0.005 per gallon

after the first 100,000 gallons)

Alternative Fuel $0.162 per GGE (Gasoline Gallon Equivalent)

*This list contains key State updates taking effect in 2020. This is not intended to be an exhaustive list. Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.

The wholesale motor vehicle fuel sales tax rate is $0.076 per gallon for gasoline and alternative fuels and

$0.077 per gallon for diesel.

WEST VIRGINIA

 Effective January 1, 2020 West Virginia’s combined fuel tax rates (flat rate plus variable rate) are as follows:

 

Fuel Type

Tax Rate

Gasoline (including ethanol and blends) $0.3570 per gallon
Diesel (including biodiesel) $0.3570 per gallon
Compressed Natural Gas (CNG) $1.869 per 1,000 cubic feet
Liquefied Natural Gas (LNG) $0.1520 per gallon
Liquefied Petroleum Gas (LPG) $0.1840 per gallon
Field Gas Exempt

Dyed diesel, aviation gasoline, aviation jet fuel, #1 fuel oil, heating oil, dyed biodiesel and dyed kerosene are only subject to the variable rate which is $0.1520 for 2020.

Detailed information can be found in Administrative Notice 2019-31 (https://tax.wv.gov/Documents/AdministrativeNotices/2019/AdministrativeNotice.2019-31.pdf)

*This list contains key State updates taking effect in 2020. This is not intended to be an exhaustive list. Please confirm all tax rates and license and reporting requirements with the particular State or your tax consultants.