Motor fuel excise tax

Tax Law amendments effective September 1, 2011:

  • Treat certain dyed diesel motor fuel as non-highway diesel motor fuel that is exempt or partially exempt from tax.
  • Retailers of heating oil only will become retailers of non-highway diesel motor fuel only.
  • Criminal penalties apply to filling stations that possess dyed diesel motor fuel (other than water-white kerosene).
  • Police officers and peace officers may seize diesel motor fuel imported by an unregistered distributor.

For more information, see TSB-M-11(6)M,(11)S, Changes in the Taxation and Classification of Diesel Motor Fuel Beginning September 1, 2011

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. It is jointly administered and collected with the petroleum business tax.

Exemptions and refunds

  • Sales to governments (federal, State and local) are exempt from tax
  • 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
  • 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

You must register as a motor fuel distributor if you:

  • 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.

You must register as a diesel motor fuel distributor if you:

  • 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), 
  • 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).

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.

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. See Form TP-650-I, Instructions for Form TP-650 for more information.

Bonding requirement

An applicant for a distributor of motor fuel registration must file a bond or other acceptable security for at least $50,000.

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

When to file and pay 

Type of entityTax forms/reportsFiling periodDue date
Motor Fuel Distributors Form PT-100, Petroleum Business Tax Return

Form PT-101,Tax on Motor Fuels
Monthly On or before the 20th of the following month
Diesel Motor Fuel Distributors Form PT-100, Petroleum Business Tax Return

Form PT-102, Tax on Diesel Motor Fuel
 Monthly On or before the 20th of the following month
Motor fuel and diesel motor fuel transporters Form FT-942, Diesel Motor Fuel and Motor Fuel Transporter's Monthly Report
 Monthly On or before the 20th of the following month
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

 Monthly On or before the 20th of the following month

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:

Last Modified: February 16, 2012