Motor fuel excise tax
Fuel taxes suspension
The recently enacted New York State budget suspended certain taxes on motor fuel and diesel motor fuel effective June 1, 2022. See Suspension of certain taxes on motor fuel and diesel motor fuel. Subscribe to Miscellaneous tax emails to receive notifications as we issue additional guidance.
Most petroleum business tax filers must Web File their returns. For more information about the Web File mandate, see Petroleum Business Tax Web File.
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.
The tax is jointly administered and collected with the state's petroleum business tax.
Sales to governments (federal, state and local) are exempt from the motor fuel excise tax.
Refunds are provided as follows:
- 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.
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.
|Register as a:||if you:|
motor fuel distributor
diesel motor fuel distributor
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, terminal operators and MCTD motor fuel wholesalers. . For more information on registration requirements, see Form TP-650-I, Instructions for Form TP-650.
An applicant for a distributor of motor fuel registration must file a bond or other acceptable security for at least $50,000.00.
The bond requirement for a distributor of diesel motor fuel is up to the department's discretion.
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
|Motor fuel and diesel motor fuel transporters||Form FT-942, Diesel Motor Fuel and Motor Fuel Transporter's Monthly Report|
|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
PromptTax 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 current motor fuel and diesel motor fuel excise tax rates.