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Motor Fuel Tax

Frequently Asked Questions





Sections:
  • Motor Fuel Tax

  • Refined Fuel Surcharge

  • Licensing and Bonding

  • Tax Returns

  • Claim for Refunds



  • Motor Fuel Tax

    Who is subject to the motor fuel tax?
    What are the motor fuel tax rates?


  • 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.

  • What are the motor fuel tax rates?

  • The tax rates are:
    $.08 cents per gallon for diesel and gasoline highway use;
    $.05 cents per gallon for diesel and gasoline marine use;
    $.047 per gallon for aviation gasoline use;
    $.032 per gallon for jet fuel use.

    Refined Fuel Surcharge

    What is the refined fuel surcharge?
    Who is subject to the refined fuel surcharge?
    What exemptions apply to refined fuel?


  • 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 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. Local governments are exempt from the motor fuel tax, but not all local governments are exempt from the surcharge. In order for a local government to be exempt from the surcharge, it must meet the definition of “municipality”. For a list of municipalities, contact the motor fuel section at dor.tax.motorfuel@alaska.gov.

    Licensing and Bonding

    How do I apply for a qualified dealer license?
    Is there a fee for a motor fuel qualified dealer license?
    Is there a bond requirement for the license?
    Is there a waiver for the bond requirement for the license?


  • How do I apply for a qualified dealer license?

  • An application for a license may be filed electronically using Revenue Online. Licenses must be renewed annually. Licenses are valid July 1- June 30. Licenses can be issued mid-year, but they will expire June 30.

  • Is there a fee for a motor fuel qualified dealer license?

  • No, there is no fee for the license from the Department of Revenue.

  • Is there a bond requirement for the license?

  • All new applicants must also furnish a bond for a minimum of one full license period. The bond must be in an amount equal to twice the average monthly motor fuel tax, but no less than $5,000. Alternatives for a bond are cash, letter of credit or a certificate of deposit from an Alaska bank in an amount equal to twice the average monthly motor fuel tax.

  • Is there a waiver for the bond requirement for the license?

  • A qualified dealer that has shown a consistent filing and payment history for three years is not required to maintain a bond if the qualified dealer continues to remain in compliance with Alaska motor fuel statutes. To request a waiver contact the motor fuel section at dor.tax.motorfuel@alaska.gov.

    Tax Returns

    What are the tax return filing requirements?
    How do I file the tax return?


  • What are the tax return filing requirements?

  • Licensees are required to file a tax return each month, regardless of whether sales occurred or not. Tax returns are due on the last day of the month following the month of the return.

  • How do I file the tax return?

  • Tax returns must be filed electronically using Revenue Online.

    Claim for Refunds

    Can I claim a refund for fuel used off-highway or for exempt purposes?
    How do I file claim for refund?


  • 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.

  • How do I file claim for refund?

  • The claim for refund form is available on the form section of this web site. A claim for a refund currently are not available for online filing.



    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.