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Motor Fuel Tax

State Motor Fuel Tax

Motor fuel is a fuel that is used to operate motor vehicles. The primary sources of power for most motor vehicles are gasoline and diesel fuel. Motor fuel excise taxes are taxes levied on gasoline, diesel, and gasohol. Most states levy per unit taxes based on how many gallons of motor fuel a consumer purchases. Motor fuel tax is an excise tax imposed on sales of motor fuel.

Gasoline

Gasoline is a petroleum-derived flammable liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.

Diesel

Diesel fuel is a fuel specifically designed for use in diesel engines, whose fuel ignition takes place, without any spark, as a result of compression of the inlet air mixture and then injection of fuel. Ultra-low-sulfur diesel (ULSD) is a diesel fuel with lowered sulfur contents. The untaxed diesel is dyed red for identification, and using this untaxed diesel fuel for a typically taxed purpose (such as driving use), the user can be fined $10,000.

Gasohol

Gasohol is a fuel mixture of 10% ethanol and 90% gasoline. Gasohol can be used in the internal combustion engines of most modern automobiles and light-duty vehicles without need for any modification on the engine or fuel system. E10 blends are typically rated as being 2 to 3 octane numbers higher than regular gasoline and are approved for use in all new cars.

Terminal

A terminal is an a fuel storage and distribution facility that is normally supplied by pipeline but may be supplied by vessel or rail, and from which fuel is removed in bulk quantities into pipelines for further distribution, the cargo tanks of transport trucks, marine vessels or rail cars. Terminal numbers are assigned by the IRS.

Carrier

Motor fuel carrier is a person that engages in the commercial transportation of a motor fuel product. Types of carriers would include Pipeline, Rail, Marine Vessel, Aircraft and Truck. Carrier Report & Schedules are required by states to report motor fuel product movement.

Renewable Energy

Renewable fuel is environment friendly but more expensive to produce. Renewable energy includes fusel fuel, hydrogen, and electricity.

Storage

Motor fuel carrier is a person that engages in the commercial transportation of a motor fuel product. Types of carriers would include Pipeline, Rail, Marine Vessel, Aircraft and Truck.

Movement

Motor fuel can be moved using a truck, train, vessel, or pipe lines. All movement must be tracked and reported for tax and EPA reasons.

 

Refer to FTA Motor Fuel Tax Uniformity Project to learn more.

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