|98-661||How to Claim a Tax Refund for Gasoline Used in Off-Highway Equipment|
|98-685||Changes and Deadlines for Motor Fuels Tax Refund Claims|
Motor Fuels Tax Refunds
All taxpayers who are not licensed as a supplier, permissive supplier or distributor must provide the following information when requesting a refund of taxes paid on gasoline or diesel fuel directly from the Comptroller's office:
- Texas Claim for Refund of Gasoline or Diesel Fuel Taxes (form 06-106);
- Power of Attorney (01-137) or other written authorization, if being represented by an authorized agent, and
- Documentation as provided in Sections 162.127 (gasoline) and 162.229 (diesel fuel) and Rules 3.431, 3.432 and 3.448 to support a claim for refund. This documentation must be maintained for 4 years and made available upon request. Do not send documentation with your refund request. You will be contacted with mailing instructions on what documents are needed to verify the refund claim. Documents will be requested on every initial claim and can be requested for subsequent claims.
NOTE: The statute of limitation for claiming a motor fuel tax refund is the first anniversary of the first day of the calendar month following the purchase, use, delivery, export, or loss by fire, theft or accident, whichever occurs latest.
Motor fuel tax refund claims are not assignable.
Send tax refund requests to:Texas Comptroller of Public Accounts
111 E. 17th Street
Austin, TX 78774-0100
Off-Highway Equipment or Other Non-highway Uses
You can request a refund for taxes paid on gasoline used solely for off-highway purposes. In addition to the original purchase invoices showing state taxes paid, you must maintain a list of each off-highway vehicle or piece of equipment or document other non-highway use and the total number of gallons used with a distribution log as described in Section 162.127 and Rule 3.432
The lessor of off-highway equipment can claim a refund. In addition to the original purchase invoices, you must maintain a list of each piece of off-highway equipment, and a distribution log as described in Section 162.127 and Rule 3.432 documenting the number of gallons of gasoline used in both on-highway and off-highway vehicles and equipment. A lessor who claims a refund of state fuel tax may include a separate refueling, fuel reimbursement, or fuel service charge on the invoice, as long as the invoice contains a statement that the fuel charge does not include state motor fuel taxes.
You can claim a refund for taxes paid on gasoline used in a motor vehicle operated exclusively off-highway, except for incidental highway use. Incidental travel on the public highway is infrequent, unscheduled, and insignificant to the total operation of the motor vehicle, and only for the purpose of transferring the base of operation or to travel to and from required maintenance and repair. See Rule 3.433 regarding incidental highway travel. In addition to the original purchase invoices showing taxes paid and a distribution log, you will need a record showing the date and miles traveled during each highway trip. Calculate the number of gallons to claim for refund by subtracting from the total gallons delivered into the vehicle 1/4 gallon for each mile of incidental highway travel.
NOTE: Only the end user is allowed to request a refund of taxes paid on gasoline used in off-highway equipment. For example, a marina may not request a refund of tax paid on gasoline and resold tax-free directly to motorboats.
The refund of taxes paid on diesel fuel used for off-highway purposes expired on January 1, 2005, except for the following specific uses:
Manufacturers can claim refund of taxes paid on diesel fuel used on or after September 1, 2007, as a feedstock in the production of tangible personal property for resale other than diesel fuel used in the production of motor fuel. See Section 162. 229 and Rule 3.432 for documentation required to support the refund.
Oil and Gas Well Drill Cuttings
You can claim a refund for taxes paid on diesel fuel used on or after September 1, 2007, as a medium to remove drill cuttings from a well bore in the production of oil or gas. See Section 162. 229 and Rule 3.432 for documentation required to support the refund.
Oil Well Servicing Movable Specialized Equipment
A refund may be claimed for taxes paid on diesel fuel consumed on or after September 1, 2007, by moveable specialized equipment used in oil well servicing. To qualify for the refund, the person purchasing the diesel fuel must have received, or be eligible to receive, a federal diesel fuel tax refund for the diesel fuel used in the moveable specialized equipment. See Section 162. 229 and Rule 3.432 for documentation required to support the refund.
Metropolitan Rapid Transit Authority Public School Transportation
A metropolitan rapid transit authority (MTA) that contracts directly with a Texas independent school district to transport students may receive a refund of the taxes paid on gasoline, diesel fuel and liquefied gas used on or after July 1, 2007, to provide this service. Records must be maintained regarding vehicle mileage, fuel consumed, total student passengers and total nonstudent passengers for routes under contract with a public school district. A refund may not be claimed for a single route if in any month the nonstudent passengers exceed 5 percent. Documentation supporting a refund must be maintained for six years. See Rule 3.448 for addition information on qualifying for refund and documentation.
Power Take-Off Systems
You can request a refund for taxes paid on gasoline used in motor vehicles equipped with power take-off or auxiliary power units. See Rule 3.432 for approved methods for calculating the amount of gasoline consumed by power take-off or auxiliary power units. Motor vehicle air conditioning and heating systems are no longer considered power take-off systems.
The refund of taxes paid on diesel fuel consumed by power take-off or auxiliary power units expired on January 1, 2005.
You can claim a refund of taxes paid on gasoline or diesel fuel exported from this state in quantities of 100 or more gallons. See Rule 3.432 for documentations required to support the export.
Lost by Fire, Theft or Accident
You can claim a refund of taxes paid on gasoline or diesel fuel lost by fire, theft or accident in quantities of 100 or more gallons. See Rule 3.432 for documentation requirements when the loss is incurred through a drive-away theft at a retail outlet, leak in a line or storage tank or by fire.
Federal government entities that paid taxes on gasoline or diesel fuel purchased for its exclusive use. The federal government means any department, board, bureau, agency, corporation, or commission that the United States government has created or wholly owns. Exclusive use by the federal government means use of fuel only in motor vehicles or other equipment that the federal government operates. A person operating under a contract with the federal government is not an exempt entity.
Texas public school districts that paid taxes on gasoline or diesel fuel purchased for its exclusive use.
Commercial transportation companies that paid taxes on gasoline or diesel fuel used exclusively to provide public school transportation services to a Texas public school district under Education Code, §34.008. See Rule 3.448 relating to transportation services for Texas public school districts for recordkeeping requirements and instructions for claiming refund for charter trips.
Texas non-profit electric and telephone cooperatives organized under Utilities Code, Chapter 161 or Chapter 162 respectively, that paid taxes on gasoline or diesel fuel used exclusively in motor vehicles or other equipment the electric or telephone cooperative operates.
Texas volunteer fire departments that paid taxes on gasoline or diesel fuel purchased on or after July 1, 2009, for its exclusive use.
Retailers located on an Indian reservation recognized by the United States government can claim refund of tax paid on gasoline or diesel fuel resold tax-free to exempt tribal entities and tribal members. The retail dealer must maintain records that include the original purchase invoices that show that the state tax was paid and sales invoices that document the exempt sale. See Rule 3.432 for sale invoice requirements.
Transit companies that pay the regular tax rate can request a partial refund for motor fuel used in qualified vehicles. See Rule 3.431 "Refund of Gasoline and Diesel Fuel Tax To Transit Company." The refund for gasoline is one cent per gallon and one-half cent per gallon for diesel fuel. To support a claim for refund, transit companies must keep the original purchase invoices, equipment lists and distribution logs as provided is Sections 162.127 (gasoline) and 162.229 (diesel fuel) and Comptroller Rule 3.342.
Metropolitan Rapid Transit Authorities Providing Public School Transportation
Metropolitan rapid transit authorities (MTA) that contracts directly with a Texas independent school district to transport students may receive a refund of the taxes paid on gasoline, diesel fuel and liquefied gas used to provide this service on or after July 1, 2007. Records must be maintained regarding vehicle mileage, fuel consumed, total student passengers and total nonstudent passengers for routes under contract with a public school district. A refund may not be claimed for a single route if in any month the nonstudent passengers exceed 5 percent. The MTA must submit a refund claim to the Comptroller and maintain all supporting documentation for six years.
NOTE: Gallons claimed for public school transportation by a transit company cannot be included in the transit company's claim for refund of the 1 cent per gallon for gasoline or one-half cent per gallon for diesel fuel. See Rule 3.448 regarding transportation services for Texas public school districts.
Supplier, Permissive Supplier or Distributor License Holders
A licensed supplier, permissive supplier, or distributor can claim credit for taxes paid on motor fuel consumed for a non-highway purpose, exported, lost by fire, theft, or accident and sales to exempt entities on the monthly tax return. A supplier, permissive supplier or distributor who reported and remitted or that paid more taxes than were due has four years to claim a credit on their tax return.
Aviation Fuel Dealer License Holders
Licensed aviation fuel dealers that pay taxes on gasoline, aviation gasoline, diesel fuel or jet fuel can claim refund on gasoline, aviation gasoline, diesel fuel or jet fuel that is delivered into the fuel supply tank of aircraft and aircraft servicing equipment or into a bulk storage tank of another licensed aviation fuel dealer. To support claim for refund, aviation fuel dealers must maintain records as required in Sections 162.115, 162.127, 162.216 and 162.220.
Interstate Trucker License Holders
Licensed Interstate truckers that pay taxes on gasoline, diesel fuel or liquefied gas can claim a refund on motor fuel consumed in licensed commercial motor vehicles outside this state; i.e., in Mexico. See Rules 3.430 and 3.432 for record keeping requirements. A credit must be claimed on or before the due date of the third successive quarterly return or the due date of the annual interstate trucker tax return if annual returns are filed.
For refund information for Motor Fuels Taxes, call us at (800) 531-5441, ext. 5-1083.