Motor fuel excise tax

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.

Registration requirements

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.

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).

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.

Bonding requirement

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.

When to file and pay

Type of distributor	Tax forms (monthly returns are due on or before the 20 th of the following month)
Motor fuel distributors	Form PT-100, Petroleum Business Tax Return

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.

Tax rates

Publication 908, Fuel Tax Rates, provides the current motor fuel and diesel motor fuel excise tax rates.

For more information, see:

Petroleum business and fuel excise tax forms and instructions (current year) or (prior years and periods)
Motor fuel tax advisory opinions (TSB-As)
Motor fuel tax (TSB-Ms)
Motor fuel tax guidance (NYT-Gs)
Motor fuel tax publications
Oneida Nation Settlement Agreement