Questions and Answers
Motor Fuel Tax
Motor Vehicle Fuel Tax
Motor Vehicle Fuel Tax
Motor Fuel Tax:
Are cities, townships, counties, schools and state governments required to pay motor fuel, special fuel and Liquified Petroleum taxes?
Motor fuel statutes apply to these agencies the same as any individual. There are no exemption provisions for any government agencies other than direct purchases made by the federal government and its agencies.
Are police vehicles required to pay motor fuel taxes?
Police vehicles are not exempt from motor fuel tax on gasoline and diesel fuels. They are exempt from taxes on liquefied petroleum.
Are fire trucks and ambulances required to pay motor fuel taxes?
If a fire truck or ambulance is not licensed or does not require a license, dyed diesel fuel may be purchased with no tax. If a fire truck or ambulance is licensed, clear diesel fuel may be purchased with the tax included at time of purchase. A gasoline powered fire truck or ambulance is subject to the tax at the time of purchase, but may obtain a refund.
Is the Army Corp of Engineers exempt from motor fuel taxes?
Yes, they are a federal agency.
Is the state exempt?
The State of Kansas is not exempt from state motor fuel excise tax. The federal govt. exempts the state from the federal motor fuel excise tax.
Is the American Red Cross exempt from state taxes?
Yes, they are an instrumentality of the federal government.
Are motor fuels subject to sales tax?
If the motor fuel excise tax is applicable, no sales tax is required. Fuel that is not subject to motor fuel excise tax becomes subject to sales tax. However, there may also be a sales tax exemption for the fuel used.
Am I required to file a return if I have no tax liability?
A return must be filed even if there is no tax liability. If no return is filed, it is considered delinquent.
Are operators of gas wells that yield natural gasoline required to obtain a license?
An operator of a gas well must obtain a manufacturer's license. A manufacturer is defined under K.S.A. 79-3401 as any person who or which produces, refines, prepares, blends, distills, manufactures or compounds motor vehicle fuels or special fuels in the state of Kansas for such person's own use therein, or for sale or delivery therein.
What is the Oil Inspection Fee? (Petroleum Products Inspection Fee)
The Oil Inspection Fee is a fee collected from the position holder/supplier at the terminal or from the first importer of the fuel. The fee effective January 1, 2009 is $.0135 per barrel. You can locate prior rates on the web under Motor Fuel Tax Rates, Historical Petroleum Products Inspection Fee Rates from 1935 to Present. The fee is used for the inspection program overseen by the Department of Agriculture, Division of Weights and Measures.
What is the Environmental Assurance Fee?
The Environmental Assurance Fee is a fee collected from the position holder/supplier at the terminal or from the first importer of the fuel. The fee is $.01 per gallon. This fee is used for clean-up activities of underground and aboveground storage tank leakage and other fuel spills. The Department of Health and Environment oversees this fund.
How do I know if I must collect the Oil Inspection Fee or Environmental Assurance Fee?
All position holders in a terminal or first importer of fuel into Kansas must collect these fees. Otherwise, these fees should be included in the price of the fuel purchased.
Is kerosene taxable?
Kerosene is not subject to motor fuel tax unless it is blended with another fuel.
What information is required on a delivery ticket?
A delivery ticket must contain the same information that is on the bill of lading from the terminal. See K.S.A. 79-3415 and 55-511 for more information.
How do I obtain a listing of licensed distributors, importers and exporters or retailers?
According to Kansas statute 79-3426, any distributor, importer, exporter or retailer that holds a valid license may receive a roster of all names and addresses of persons holding distributor, importer and exporter or retailer licenses. To request a complete list, contact the Motor Fuel Tax Unit, Division of Taxation at (785) 368-8222.
Is Racing Fuel subject to Motor Vehicle Fuel tax when it is used only “off road” on race tracks?
Racing Fuel would clearly fit within the definition of “special fuels,” set forth at K.S.A. 79-3401(s) and also appears to fit within the definition of “motor vehicle fuels,” set forth at K.S.A. 79-3401(l). Racing would be subject to the motor vehicle fuel tax imposed under K.S.A. 2000 Supp. 79-3408 et seq., to be paid by the supplier or the distributor.
In accordance with K.A.R. 92-3-20, the end-user or consumer (not the supplier or distributor) of the Racing Fuel may claim a refund from the Department of motor vehicle fuel tax on fuel properly documented and substantiated as consumed in non-highway use.
Taxation of motor fuel sales made in federal areas.
All retailers, and base exchanges and commissaries, must collect Kansas motor vehicle fuel taxes on fuel sales made on Federal areas located within Kansas.
Congress has waived the sovereign immunity of the United States in regard to collection of state motor vehicle fuel taxes on sales made on federal areas. The only exception is fuel sold to the federal government. The law requires the officer in charge of a military base to submit monthly reports showing the amount of taxable motor vehicle fuels sold on base.
Title 4 U.S.C.A., Section 104
(a) All taxes levied by any State, Territory, or the District of Columbia upon, with respect to, or measured by, sales, purchases, storage, or use of gasoline or other motor vehicle fuels may be levied, in the same manner and to the same extent, with respect to such fuels when sold by or through post exchanges, ship stores, ship service stores, commissaries, filling stations, licensed traders, and other similar agencies, located on United States military or other reservations, when such fuels are not for the exclusive use of the United States. Such taxes, so levied, shall be paid to the proper taxing authorities of the State, Territory, or the District of Columbia, within whose borders the reservation affected may be located.
(b) The officer in charge of such reservation shall, on or before the fifteenth day of each month, submit a written statement to the proper taxing authorities of the State, Territory, or the District of Columbia within whose borders the reservation is located, showing the amount of such motor fuel with respect to which taxes are payable under subsection (a) for the preceding month. . . .
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