Motor Fuel Tax

Frequently Asked Questions





Sections:
  • Motor Fuel FAQ



  • Motor Fuel FAQ

    What is the refined fuel surcharge?
    Who is subject to the refined fuel surcharge?
    What is refined fuel?
    What exemptions apply to refined fuel?
    Who is subject to the motor fuel tax?
    When is the refined fuel surcharge and motor fuel tax due?
    Can I claim a refund for fuel used off-highway or for exempt purposes?


  • What is the refined fuel surcharge?

  • HB 158, effective July 1, 2015, adds a surcharge of $0.0095 per gallon on refined fuel sold, transferred, or used in Alaska.

  • Who is subject to the refined fuel surcharge?

  • Persons who first transfer, sell or use (if the surcharge was not previously paid) refined fuel in the state are subject to the surcharge.

  • What is refined fuel?

  • Refined fuel is fuel produced from oil that is used in an engine, machine, or contrivance that creates heat, energy, or power.

  • What exemptions apply to refined fuel?

  • Fuel sold to federal and state agencies for official use, fuel refined and used outside the United States, liquefied petroleum gas, aviation fuel, and fuel sold or transferred between qualified dealers is exempt from the surcharge. Fuel sold to local government agencies and charities is NOT exempt from the surcharge. Fuel sold as heating fuel is NOT exempt from the surcharge.

  • Who is subject to the motor fuel tax?

  • Persons who first transfer, sell or use (if the motor fuel tax was not previously paid) motor fuel in the state are subject to the tax. Motor fuel tax rates are as follows: gasoline, diesel, and gasohol – highway $0.08 / marine $0.05 per gallon, aviation gas - $0.047 per gallon, and jet fuel - $0.032 per gallon.

  • When is the refined fuel surcharge and motor fuel tax due?

  • Returns and payments are due on the last day of the month following the month in which the fuel was sold or transferred. Both the surcharge and the tax are reported on the same return. Taxpayers file their returns and make payments electronically using Revenue Online at http://online-tax.alaska.gov.

  • Can I claim a refund for fuel used off-highway or for exempt purposes?

  • Persons may file a Claim for Refund with the Department within a year from the date of purchase. The off-highway refund is $0.06 per gallon if the fuel was purchased at the $0.08 highway fuel rate. The off-highway refund is $0.03 per gallon if the fuel was purchased at the $0.05 marine fuel rate. Persons may claim a refund of the entire tax if the fuel was used for exempt purposes.



    The above questions and answers were provided in an attempt to address the most commonly asked questions regarding motor fuel taxes. If you have further questions, please contact the Anchorage office at 907.269.6620 or dor.tax.motorfuel@alaska.gov.