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Suspension of certain taxes on motor fuel and diesel motor fuel

Effective June 1, 2022, and continuing through December 31, 2022, the following taxes on motor fuel and highway diesel motor fuel are suspended:

  • excise tax (Article 12-A),
  • prepaid sales tax, and state sales and use taxes (Article 28), and 
  • the additional state sales and use tax imposed in the Metropolitan Commuter Transportation District (MCTD).

Local sales and use taxes are not suspended. The Tax Law authorizes counties and cities to elect a cents-per-gallon or percentage rate sales tax method on fuel. See Which localities have elected a cents-per-gallon rate for their local sales tax on fuels?

Important highlights:

  • Distributors and wholesalers will not be required to remit the eight cents ($.08) per gallon excise tax or the prepaid sales taxes on motor fuel and highway diesel motor fuel and must exclude these taxes from the price on any sale of these fuels.
  • Retail sellers of motor fuel and highway diesel motor fuel must exclude the excise tax and New York State/MCTD sales tax from the price of these fuels at the pump.

See Important Notice N-22-1, Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Beginning June 1, 2022.

Frequently asked questions

Motor Carrier questions on IFTA and fuel use tax

More information

  • Important Notice N-22-1, Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Beginning June 1, 2022
  • Publications:
Updated: