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Fuel Tax Refund

Discussion in 'General Topics' started by Windchill, Apr 16, 2005.

  1. Windchill

    Windchill Well-Known Member

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    Not sure how much it would amount to, but for some I'm sure it adds up ... and for everyone else ... better than nothing I suppose. 24/50 states offers this. Also interesting to note that if you use mogas (automotive gasoline) for your aircraft in many states you can claim an exemption/refund off of the taxes toward automotive gas.

    Found at AOPA FAQs answered by Aviation Tech. Services. I'll post the link but to open it you need to be a member so I'll copy/paste also since it's not like a newspaper where we can enter bogus login info.

    Fuel Tax Refund

    [ QUOTE ]


    Fuel tax refunds
    As throughout past decades, this topic is subject to the hodgepodge of 50 different states' tax law codes. Certainly some confusion for pilots between the various levels of fuel taxes has always existed: state sales tax, state excise, federal excise, highway, private flight, charter flight, and type of fuel. We think we can simplify your understanding, and maybe help you find that refund, with our state-by-state (April 2000) listing.

    State refunds
    About half, 24 of the 50 states, have some type of state aviation fuel tax exemption or refund. Because these are usually the states that have a higher fuel tax structure to begin with, pilots in the other 26 states should not feel slighted. Plus, a pilot from any state is generally entitled to a refund for a fuel purchase in these 24 states. Check your receipts.

    State
    AvGas
    Jet Fuel
    Refund or Exemption

    Excise tax
    Cents/gal
    Sales tax
    Percent
    Excise tax
    Cents/gal
    Sales tax
    Percent

    Alaska
    4.7
    None
    3.2
    None
    Charitable flights

    Arizona
    5
    None
    3.05
    None
    Aerial applicators

    California
    18
    None
    2
    7.25+
    Manuf., mod, o'haul, repair shops exempt or refund on jet excise only

    Colorado
    6
    None
    4
    3.0
    Aerial applicators on private airports exempt from 1/2 excise on avgas

    Delaware
    23
    None
    None
    None
    All tax is refundable; submit form MFT-4 within one year of purchase

    Florida
    6.9
    None
    6.9
    None
    Bonded export and international ops

    Illinois
    None
    6.25
    None
    6.25
    Certain charitable flights and international flights

    Indiana
    15
    5.0
    None
    5.0
    Export and international flights: jet and avgas. All avgas users refund: excise

    Kentucky
    15
    None
    None
    6.0
    Charitable flights: refund jet sales tax. Avgas: all: refund excise above a 6% sales tax level

    Maine
    22
    5.5
    3.4
    None
    Export and international flights: Full refund all taxes, both jet and avgas. Also, all can get avgas excise refund

    Maryland
    7
    None
    7
    None
    Export operations, agricultural ops, and aircraft manufacturing companies

    Massachusetts
    10
    None
    5
    None
    Agricultural operations and bonded jet fuel

    Michigan
    3
    6.0
    3
    6.0
    Agricultural operations and flight test operations exempt from sales tax

    Missouri
    9
    None
    None
    4.25
    Ag ops exempt from avgas excise

    Nebraska
    5
    None
    3
    None
    Refund: Flight schools, avgas and jet

    New Jersey
    17
    None
    2
    None
    Excise: Exempt if sold at an international airport. Also, 10.5 of the 17-cent avgas excise can be refundable to the end user

    New Mexico
    17
    None
    None
    4.5
    Charitable flights and avgas excise in full if more than 100 gal. in 6 months less 5% courtesy tax

    New York
    8
    7.5
    8
    7.5
    Excise tax refundable if charged, Form FT 946

    North Carolina
    None
    4+
    None
    4+
    Certain charitable flights

    North Dakota
    8
    None
    8
    None
    Difference, if any, between 8-cent excise and a 4% sales tax

    Ohio
    None
    5.5
    None
    5.5
    Agricultural and charitable flights

    Virginia
    5
    None
    5
    None
    Jet excise: Refund 4.5 cents/gal if purchase over 100,000 gal annually

    Washington
    Greater of 6.0 or 3%
    6.5+
    Greater of 6.0 or 3%
    6.5+
    Agricultural operations and flight testing are exempt from excise

    Wyoming
    7
    None
    7
    None
    Agricultural operations


    State fuel tax phone numbers:

    Note: This tax information was compiled through a telephone survey conducted during April 2000, to the appropriate departments in each state. Because of the nature of the survey and the changing nature of tax codes, AOPA can not guarantee the accuracy of the content. If you believe that any of these tax credits may apply to you, we suggest you contact your state taxing authority or a tax professional.

    Federal excise taxes on fuel
    As you are probably aware, current federal excise tax rates are 19.4 cents/gal for avgas and 21.9 cents/gal on jet fuel. There are no refunds or exemptions to the federal tax for private or FAR Part 91 operations except the following very limited areas:

    Avgas and/or jet fuel (15 cents avgas and 17.5 cents jet fuel could be refundable as below)

    Agricultural: On farm for farm purposes. Credit only.
    Supplies for aircraft, aircraft employed in foreign trade
    Exclusive use of state and local governments
    Exclusive use of nonprofit educational organizations. Campus and classrooms type educational organization.
    Aircraft museums, usually noted as World War II aircraft
    Certain Helicopters:
    Hard mineral mining, oil and gas
    Forestry operations, including logging
    Emergency medical transport operations
    Certain emergency medical transport operations
    Dedicated EMT fixed-wing aircraft
    Commercial aviation operations; i.e., 135 and 121 ops ( includes sightseeing)
    Aircraft that are paying the commercial "ticket" tax can get a refund from the fuel excise tax-- they would not pay both.

    NOTE: Commercial aviation is generally, by IRS definition, aircraft over 6,000 lb gross. Because the IRS collects/refunds both the federal fuel excise tax and any commercial ticket tax, it's the IRS definition of commercial that matters, not any FAA definitions. We don't want to complicate the fuel excise issue further with the commercial ticket tax; we can help by phone if you have any questions. Both taxes are handled on IRS forms 720, 8849, or 4136 with individual form instructions. IRS Pub booklet #378, Fuel Tax Credits and Refunds, is the IRS guidance. All are available from the IRS Web site: www.irs.gov.
    Highway or auto gas refunds
    Most states have some provision for refunds of the state highway tax or auto fuel tax when auto fuel is used on other than their highway; i.e., in aircraft. If you use auto fuel, this could be a substantial amount, often 35 to 55 cents per gallon. Keep in mind, however, that if you received such a refund, the state might advise the IRS and indeed the 19.4-cent aviation tax could then be collected. Contact your state tax authority to verify any auto fuel refund procedure.



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  2. kellwolf

    kellwolf Deadbeat

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    Nice of them to leave out the three states I was interested in. I guess that means I'm screwed. [​IMG]
     
  3. flyover

    flyover New Member

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    [ QUOTE ]
    Nice of them to leave out the three states I was interested in. I guess that means I'm screwed. [​IMG]

    [/ QUOTE ]

    >>About half, 24 of the 50 states, have some type of state aviation fuel tax exemption or refund. Because these are usually the states that have a higher fuel tax structure to begin with, pilots in the other 26 states should not feel slighted.<<

    When states put in excessive taxes they usually have to put in provisions that mitigate the damage to effected industries. Taxes can kill business, you know.
     
  4. kellwolf

    kellwolf Deadbeat

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    Nah, I'm still in Mississippi. I'm still screwed, just has nothing to do with aviation fuel taxes..... [​IMG]
     

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