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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   

Definitions

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."

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; and
  • sales of B20 and sales of non-highway diesel motor fuel for nonresidential heating (partial exemption only).

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; and
  • passenger commuter ferries.  

Who must pay the tax?

The tax is paid by registered distributors.

Registration requirements:

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

 Requirements
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).
retailer of non-highway diesel motor fuel only (RONDO)
  • only sell non-highway diesel motor fuel to consumers. (If you are registered as a RONDO, you may import non-highway diesel motor fuel into the state, and you may sell non-highway diesel motor fuel in the state, but you may not produce, refine, manufacture, or compound diesel motor fuel in the state.)
residual petroleum product business
  • import (or cause to be imported) any residual petroleum product into New York State for use, distribution, storage, or sale in New York State;
  • produce, refine, manufacture, or compound residual petroleum product within New York State; or
  • sell residual petroleum product in New York State.
aviation fuel business
  • are an aircraft operator that imports kero-jet fuel or aviation gasoline into New York State in the fuel tanks of its aircraft, for consumption in the state.
distributor of kero-jet fuel only
  • are a fixed‑base operator in New York State, and all of your sales of kero-jet fuel are delivered directly into the fuel tank of an airplane for use in its operation.
Metropolitan Commuter Transportation District (MCTD) motor fuel wholesaler
  • make purchases of motor fuel within the MCTD for resale, or
  • make sales (other than retail sales not in bulk) of motor fuel within the MCTD.

This registration requirement does not apply to any business that:

  • is (or is required to be) registered as a distributor of motor fuel,
  • makes only retail sales of motor fuel delivered directly into a motor vehicle for use in operating the vehicle,
  • does not make purchases or sales of motor fuel within the MCTD, or
  • does not make any sales of motor fuel in New York State.

 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
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.

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 year's PBT rates as well as exemptions, reimbursements, and credits. The cents-per-gallon rates vary by product and transaction type.

For more information, see:

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