Motor fuel excise tax

Tax law changes effective August 1, 2013:

See TSB-M-13(7)M,(5)S, Exemption for Interdistributor Sales of Highway Diesel Motor Fuel.

New York State has a motor fuel excise tax on motor fuel and diesel motor fuel sold in the state.

The tax is imposed when motor fuel is produced in or imported into New York State and when diesel motor fuel is first sold or used in the state.

The tax is jointly administered and collected with the state's petroleum business tax

Sales to governments (federal, state and local) are exempt from the motor fuel excise tax.

Refunds are provided as follows:

  • full refunds are provided for certain off-highway uses (for example, when used for space heating,  manufacturing, farming and in commercial vessels);
  • full refunds are provided for motor fuel and diesel motor fuel used in buses providing local transit service and in buses transporting school children by a non-public school operator; and
  • partial refunds are provided for motor fuel used in other private buses and taxicabs. 

Who must pay the tax?

The tax is paid by registered motor fuel and diesel motor fuel distributors.

Registration requirements: 

Apply for registration as a motor fuel or diesel motor fuel distributor using Form TP-650, Application for Registration under Articles 12-A and 13-A.

Register as a:

If you:

Motor fuel distributor

  • import (or cause to be imported ) any motor fuel (for example, gasoline, fuel grade ethanol) into New York State for use, distribution, storage or sale within the state; or
  • produce, refine, manufacture or compound motor fuel within the state.

Diesel motor fuel distributor

  • import (or cause to be imported) any diesel motor fuel into the state (other than fuel imported in the tank of a vehicle for its operation); or
  • produce, refine, manufacture, or compound diesel motor fuel within the state, or sell diesel motor fuel in the state (except diesel motor fuel sold to consumers and delivered directly into the fuel tank of a motor vehicle, boat, or aircraft for its operation).

Persons who transport but do not own the motor fuel are not required to be registered as distributors of motor fuel. However, there are other registration requirements for motor fuel transporters and terminal operators. For more information on registration requirements, see Form TP-650-I, Instructions for Form TP-650

Bonding requirement

An applicant for a distributor of motor fuel registration must file a bond or other acceptable security for at least $50,000.00.

The bond requirement for a distributor of diesel motor fuel is up to the Department's discretion.

When to file and pay 

Type of distributorTax forms (monthly returns are due on or before the 20th of the following month)
Motor fuel distributors Form PT-100, Petroleum Business Tax Return

Form PT-101,Tax on Motor Fuels
Diesel motor fuel distributors Form PT-100, Petroleum Business Tax Return

Form PT-102, Tax on Diesel Motor Fuel
Motor fuel and diesel motor fuel transporters Form FT-942, Diesel Motor Fuel and Motor Fuel Transporter's Monthly Report
Terminal operators Form FT-941, Terminal Operator's Monthly Report of Diesel Motor Fuel and Motor Fuel Inventory

Form FT-941.1, Terminal Operator's Individual Account Reconciliation

Electronic filing requirements

Generally, if your business incurs more than $5 million in combined annual motor fuel excise tax and petroleum business tax liability, you will be required to participate in the Department's PrompTax electronic filing program.

Tax rates

Publication 908, Fuel Tax Rates, provides the current motor fuel and diesel motor fuel excise tax rates.

For more information:

Updated: August 16, 2013