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Schedule FR: Sales and Use Tax on Qualified Motor Fuel and Highway Diesel Motor Fuel

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Effective September 1, 2016, the New York State cents-per-gallon sales tax rate on qualified fuel sold within the Metropolitan Commuter Transportation District (MCTD) increased to 8¾ cents per gallon.  No adjustment was made to the state cents-per-gallon tax rate or any local cents-per-gallon rate.  The state tax rate on qualified fuel sold outside the MCTD remains at 8 cents per gallon.

See N-16-7, Quarterly Notice Regarding Adjustment of the State and Local Cents-Per-Gallon Rates of Sales and Use Taxes on Certain Motor Fuel and Diesel Motor Fuel Effective September 1, 2016

Complete Schedule FR if you:

  • sell qualified fuel at retail
  • are reporting tax on the self-use of qualified fuel,
  • claim credit for prepaid sales tax you paid (either to your supplier or directly to the Tax Department), regardless of whether you sold the fuel as qualified fuel, nonqualified fuel, or as nonhighway fuel.

Qualified fuel is motor fuel or highway diesel motor fuel:

  • sold for use directly and exclusively in the engine of a motor vehicle; or
  • sold by a retail gas station (other than water-white kerosene sold exclusively for heating purposes in containers of no more than twenty gallons).

Taxable sales of motor fuel or diesel motor fuel not sold or used as qualified fuel must be reported on the appropriate jurisdiction line on your main return or on Schedule B. This includes sales by fixed base operators of aviation gasoline or kero-jet fuel for use in an aircraft.

See TSB-M-06(8)S, New Guidelines on the Sales of Motor Fuel and Diesel Motor Fuel Subject to the Cents-Per-Gallon Sales Tax for more information on the sales tax collection and reporting requirements for motor fuel and diesel motor fuel.

There is a partial exemption from NYS and local sales taxes on the sale or use of B20 biodiesel that is qualified fuel. See TSB-M-06(10)S, Sales Tax Exemptions and Reductions for Certain Alternative Fuels Beginning September 1, 2006, for more information.

Business activity: If you are normally required to file this schedule but you have nothing to report on it for this filing period, select "No."

Qualified gallons sold or used:

Taxable gallons sold

  • Motor fuel: Separate the number of taxable gallons of qualified motor fuel you sold into three categories: Regular, mid-grade, and premium. Include propane (dispensed into the fuel tank of a motor vehicle) in the Regular category.
  • Highway diesel motor fuel: Enter the total number of taxable gallons of qualified highway diesel motor fuel sold.

Nontaxable gallons sold
Enter the combined total of nontaxable gallons of qualified motor fuel (combining regular, mid-grade, and premium) and highway qualified diesel motor fuel sold during the quarterly reporting period. Include sales of E85, hydrogen, and CNG in this amount.

Nonqualified gallons sold or used:

If you sold or used motor fuel or highway diesel motor fuel that is not qualified fuel and reported the sales on your main return, and are claiming a credit for the prepaid sales tax in the Tax Adjustments section of this schedule, enter the number of gallons of motor fuel and highway diesel motor fuel sold or used as nonqualified fuel. Do not include gallons sold as nonhighway fuel in this amount. If you are claiming credit for prepaid tax paid on fuel you sold as nonhighway fuel, and did not sell any non-qualified fuel, enter "0".

Gross sales and credits for motor fuel and diesel motor fuel

Gross sales

To compute your gross sales of qualified fuel sold using a tax-included pump price:

  1. subtract the NYS 8 cents-per-gallon and Metropolitan Commuter Transportation District (MCTD) 3/4 cents per gallon (7/10 cents per gallon for the period June 1, 2016, through August 31, 2016) sales tax (if applicable) from the pump price;
  2. subtract the local sales tax per gallon amount. These amounts are listed in Publication 873, Sales Tax Collection Charts for Qualified Motor Fuel and Highway Diesel Motor Fuel Sold at Retail, for all jurisdictions that continue to impose their local tax at a percentage rate. For sales made in jurisdictions that imposed their local tax at a cents-per-gallon rate subtract the cents per gallon amount shown for the jurisdiction in the Local sales tax by jurisdiction section, multiply the result by the number of gallons sold at that pump price; and
  3. add the amounts determined in the preceding step for all pump prices.

Credits against tax (except prepaid credits)


Enter the total amount of credits that can be identified by jurisdiction that you are claiming on this schedule as a subtraction from sales. Do not include the credit for prepaid sales tax on motor fuel and diesel motor fuel, which is claimed in the Tax Adjustments section.

New York State/MCTD tax (cents-per-gallon)

Enter the total number of gallons of motor fuel and highway diesel motor fuel sold or removed from inventory for your use. If you sold or used qualified fuel, you must complete this section to report the NYS (and MCTD, if applicable) portion of the sales tax due. Report the local sales tax in the Local Sales Tax by Jurisdiction section.

Local sales tax by jurisdiction (cents per gallon)

The jurisdictions listed in this section have enacted a cents-per-gallon rate method for computing sales tax on qualified fuel. Enter the total number of gallons sold or removed from inventory for your use on the applicable taxing jurisdiction line.

Local sales tax by jurisdiction (percentage rate)

The jurisdictions listed in this section impose their local sales tax using the percentage rate method. To compute your taxable sales of qualified motor fuel and highway diesel motor fuel sold using a tax-included pump price:

  1. subtract the NYS 8 cents-per-gallon and MCTD 3/4 cents per gallon (7/10 cents per gallon for the period June 1, 2016, through August 31, 2016) sales tax (if applicable) from the pump price;
  2. subtract the local sales tax per gallon amount. See Publication 873 for all sales made in jurisdictions that continued to impose their local tax at a percentage rate.
  3. subtract the NYS motor fuel or diesel motor fuel excise tax (see Article 12-A rates in Publication 908, Fuel Tax Rates, for the applicable cents-per-gallon rate); and
  4. multiply the result by the number of taxable gallons sold at that pump price. This amount is the taxable sales amount for that pump price.

This calculation must be done for each pump price, in each jurisdiction, for both qualified motor fuel and highway diesel motor fuel.

To compute your taxable self-use, subtract the NYS motor fuel or diesel motor fuel excise tax from your purchase price and multiply the result by the number of gallons you removed from inventory for your use.

The local sales tax on the sales of qualified B20 in jurisdictions that impose their tax on qualified fuel using the percentage rate method is determined by multiplying 80% of the taxable receipt by the percentage rate for the jurisdiction. Therefore, you must multiply the result in number 4 above by 80% to determine your taxable receipt for sales of B20 biodiesel.

Tax adjustments

Credit for prepaid sales tax
Enter the amount of prepaid sales tax either paid directly to the Tax Department by you, or included in the price you paid to your supplier, for motor fuel and diesel motor fuel sold or used during the period.

You may take the credit for prepaid tax paid on all motor fuel and diesel motor fuel sold by you whether or not subject to sales tax, and on all motor fuel and diesel motor fuel reported as used during the period.

Note: If you sold fuel that is not qualified fuel or is nonhighway fuel and reported the sales on your main return, or on Schedule B, you may take a credit for the prepaid sales tax on this schedule. For nonqualified fuel, you must enter the number of gallons of motor fuel and diesel motor fuel for which you are claiming the credit in the Overview section, in Non-qualified gallons sold or used. See Important Notice N-07-17, Claiming Credit for Prepaid Sales Tax on Motor Fuel and Diesel Motor Fuel on Sales of Fuel That is Not Qualified Fuel, for more information.

Registered motor fuel or diesel motor fuel distributors and, beginning December 1, 2016, registered MCTD motor fuel wholesalers, making sales in bulk should report the credit for prepaid sales tax on motor fuel and diesel motor fuel sold in bulk to exempt purchasers or delivered out of state to their customers on Form FT‑945/1045, Prepaid Sales Tax on Motor Fuel/Diesel Motor Fuel Return.

Do not include this credit amount in the credit fields on your main return, even if the sale is being reported on your main return or on Schedule B.

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