Petroleum business tax
The petroleum business tax (PBT) is a privilege tax imposed on petroleum businesses operating in New York State. The PBT is imposed at a cents-per-gallon rate on petroleum products sold or used in the state. The tax imposition occurs at different points in the distribution chain depending on the type of petroleum product:
- For motor fuel, the PBT is imposed upon importation into the state.
- For highway diesel motor fuel, the PBT is imposed on the first sale or use in the state.
- For non-highway diesel motor fuel and residual oil, the PBT is imposed on final sale or use.
- For kero-jet fuel, the PBT is imposed on fuel consumed on take-off from points in the state.
The tax is jointly administered and collected with the state's motor fuel excise tax.
Motor fuel is gasoline, benzol, reformulated blend stock for oxygenate blending, conventional blend stock for oxygenate blending, E85, fuel grade ethanol that meets the ASTM International active standards specification D4806 or D4814, or other product which is suitable for use in the operation of a motor vehicle engine.
Diesel motor fuel is No. 1 diesel fuel, No. 2 diesel fuel, biodiesel, kerosene, fuel oil, or other middle distillate, and also motor fuel suitable for operating a diesel engine. Diesel motor fuel does not include any product specifically designated "No. 4 diesel fuel" and not suitable for operating a motor vehicle engine.
Highway diesel motor fuel is any diesel motor fuel that is not non-highway diesel motor fuel.
Non-highway diesel motor fuel is any diesel motor fuel that is designated for use other than on a public highway (except for the use of the public highway by farmers to reach adjacent farmlands), and that is dyed diesel motor fuel.
Dyed diesel motor fuel is diesel motor fuel dyed in accordance with and for the purpose of complying with the provisions of 26 USC 4082(a) and its regulations, as may be amended in the future.
Exemptions from PBT include:
- sales to governments (federal, state and local);
- kerosene, bunker fuel, liquefied petroleum gas (LPG), compressed natural gas (CNG) and E-85 products;
- sales of non-highway diesel motor fuel and residual petroleum product for residential heating use, farming, manufacturing, and mining purposes;
- sales of B20 and sales of non-highway diesel motor fuel for nonresidential heating (partial exemption only);
- the use of motor fuel, diesel motor fuel, and residual petroleum product by tugboats and towboats.
Full refunds of PBT are available for motor fuel and diesel motor fuel used in:
- buses providing local transit service or school transportation;
- commercial fishing vessels;
- passenger commuter ferries; and
- tugboats and towboats.
Who must pay the tax?
The tax is paid by registered distributors.
Apply for any of these registrations using Form TP-650, Application for Registration under Articles 12-A and 13-A. For more information on additional PBT registration requirements, see Form TP-650-I, Instructions for Form TP-650.
|Register as a:||if you:|
|motor fuel distributor||
|diesel motor fuel distributor||
|retailer of non-highway diesel motor fuel only (RONDO)||
|residual petroleum product business||
|aviation fuel business||
|distributor of kero-jet fuel only||
|Metropolitan Commuter Transportation District (MCTD) motor fuel wholesaler||
This registration requirement does not apply to any business that:
When to file and pay
File your return electronically using Petroleum Business Tax Web File.
|Type of distributor||Tax 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
|Residual Petroleum Product Distributors||Form PT-100, Petroleum Business Tax Return
Form PT-103, Tax on Residual Petroleum Product Businesses
|Aviation Fuel Businesses/Distributors of Kero-Jet Fuel Only*||Form PT-100, Petroleum Business Tax Return
Form PT-104, Tax on Kero-Jet Fuel
|Retailers of Non-Highway Diesel Motor Fuel*||Form PT-100, Petroleum Business Tax Return
Form PT-106, Retailers of Non-Highway Diesel Motor Fuel Only
|Commercial Vessel Operators||Form PT-350, Petroleum Business Tax Return for Fuel Consumption—Commercial Vessels|
*Quarterly filing options are available for some taxpayers in these two categories. See Form PT-200, Quarterly Petroleum Business Tax Return (Retailer of Non-Highway Diesel Motor Fuel Only and Distributor of Kero-Jet Fuel Only), for more information.
PrompTax 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 and payment program.
Publication 908, Fuel Tax Rates, provides the PBT rates as well as exemptions, reimbursements, and credits. The cents-per-gallon rates vary by product and transaction type.
For more information, see:
- Petroleum business and fuel excise tax forms and instructions (current) or (prior years and periods)
- Petroleum business and fuel excise tax exemption documents
- Petroleum business tax advisory opinions (TSB-As)
- Petroleum business tax guidance (NYT-Gs)
- Petroleum business tax (TSB-Ms)
- Petroleum business tax publications