Frequently Asked Questions - Motor Fuel Tax
Licensing and Bonding
- Who needs to be licensed in Missouri?
- What is an “eligible purchaser”?
- How long does it take to process my application?
- Am I required to have a bond if I am licensed?
- What is the pool bond?
- How do I calculate my bond amount?
- Should I notify the Department of Revenue if my business has a change to its name, address, contact information, ownership, or if the business ceases operating in Missouri?
- I am a tank wagon operator that operates across state lines. Must I be licensed?
Tax
- What is the Missouri tax rate on motor fuel?
- Who collects and pays the Missouri fuel tax?
- How are the fuel tax collections distributed?
- Is Sales Tax charged on motor fuels?
- Are there any exemptions from tax on motor fuel at the time of purchase?
- Are federally funded agencies treated the same for tax purposes as federal government agencies?
- Is K-1 kerosene subject to the Missouri fuel tax?
Refunds
Reporting
- May I deduct a bad debt on my fuel tax return?
- What is a “Diversion Number”?
- What is an “Import Verification Number”?
- Am I required to file on the forms that are issued by Missouri Department of Revenue or are computer-generated forms acceptable?
- How do I correct a motor fuel tax report that I previously filed?
- Does the state accept copies of returns by fax?
Licensing and Bonding
Who needs to be licensed in Missouri?
There are a number of motor fuel license classifications: Supplier, Permissive Supplier, Distributor, Distributor with Eligible Purchaser Status, Transporter, and Terminal Operator. Click here for more licensee information.
If you are a position holder (or fuel owner) in any terminal in Missouri, engaged in terminal bulk transfers or produce fuel grade alcohol or alcohol-derivative substances you must be licensed as a supplier. A supplier’s license allows the holder of the license to engage in all other activities without having to obtain any other license.
If you are importing, exporting, blending fuel or requesting “eligible purchaser” status you must be licensed as a distributor.
If you are hauling motor fuel for hire, you must obtain a transporter license.
Any person other than a licensed supplier operating a terminal in this state must be licensed as a terminal operator and will be issued a separate license number for each terminal site.
What is an “eligible purchaser”?
An “eligible purchaser” is a distributor that has been authorized by the director to purchase motor fuel on a tax-deferred basis. This allows the distributor to delay payment of the tax until two business days before the supplier is required to remit the tax to the Department of Revenue.
For example, an eligible purchaser (distributor) purchases motor fuel tax-deferred from a supplier in the month of August. The supplier is required to remit the tax on August loads on October 2. The eligible purchaser (distributor) remits the tax by electronic funds transfer to the supplier on last day of September.
How long does it take to process my application?
Normal processing is approximately one week to 10 days if the application is properly completed and the necessary bond requirements are met. In order to simplify this process, we ask that you fax us your license and bond forms before sending them by mail so we can verify that all information is correctly filled out. The fax number is (573) 522-1720.
Am I required to have a bond if I am licensed?
Yes, a bond is required to be posted as long as your license is active. The Department accepts various bonding instruments in the form of a surety bond, letter of credit, cash bond, certificate of deposit or pool bond. All persons applying for more than one activity type must submit a separate bond for each activity. The only exception is for suppliers. Click here for bonding forms.
What is the pool bond?
As a distributor you may elect to become a member of the pool bond in lieu of posting a surety bond, letter of credit, cash bond or certificate of deposit. In order to become a member of the pool bond you must have three years of satisfactory tax compliance as determined by the director. The current pool bond rate is $.0024 per gallon of motor fuel and $.0013 per gallon of aviation gasoline. Contributions will be remitted by the participating distributors through the suppliers under the same procedures set out for the remittance of motor fuel taxes. The pool bond is calculated and paid on all gallons handled, including gallons purchased for export from Missouri.
How do I calculate my bond amount?
The bond amount is based on the number of gallons handled each month taken times our motor fuel tax rate and figured for a three-month liability. After you become licensed, a yearly bond review is performed in which your bond amount may change from its original value if the amount of gallons your company handles increases or decreases. Your bond will be calculated on all gallons handled, including gallons purchased for export from Missouri.
Should I notify the Department of Revenue if my business has a change to its name, address, contact information, ownership or if the business ceases operating in Missouri?
Yes, you must notify the Department of Revenue when your business has any change to its name, address, contact information, ownership or when you cease operating in Missouri. You can notify the Department by sending a letter signed by an owner or officer we have on file for your company. If your name or ownership changes and you receive a new Federal Employer Identification Number (FEIN), you must file a new application. When you cease operations, you must be sure to file a report for the last month of operations even if you were in business only a few days during that period. Call (573) 751-2611 if you have any questions about your motor fuel license.
I am a tank wagon operator that operates across state lines. Must I be licensed?
Yes, you must be licensed as a distributor. In addition you would be required to obtain a yearly tank wagon permit for each vehicle used in your tank wagon operation. Any deliveries of motor fuel into Missouri or deliveries of motor fuel into another state through your tank-wagon operation are reported on your monthly distributor report. You would remit any fuel tax due on deliveries into Missouri from another state with your report. Credit would be given to you on any deliveries from Missouri into another state on which Missouri fuel tax had already been paid.
Tax
What is the Missouri tax rate on motor fuel?
Missouri’s fuel tax rate is 17 cents a gallon for all motor fuel, including gasoline, diesel, kerosene, gasohol, ethanol blended with gasoline, biodiesel (B100) blended with clear diesel fuel, etc. The tax does not apply to dyed diesel fuel or dyed kerosene, which is dyed in accordance with the IRS guidelines. Missouri also collects two fees on all sales of fuel. The fees collected are the agriculture inspection fee in the amount of 2.5 cents per 50 gallons (.0005 per gallon) and the transport load fee in the amount of $40.00 per 8,000 gallons (.005 per gallon). This makes the total tax and fees collected 17.55 cents per gallon.
Who collects and pays the Missouri fuel tax?
Missouri receives fuel tax from licensed suppliers on a monthly basis. The suppliers report and pay tax on the number of gallons of fuel removed from a Missouri terminal. Out-of-state suppliers may also collect and pay tax to Missouri on fuel removed from the out-of-state terminal with a Missouri destination. The tax is passed on to the ultimate consumer who purchases the fuel at the retail level. Importers of motor fuel, for which a licensed supplier/permissive supplier did not precollect the fuel tax, are responsible for remitting the fuel tax to the state.
How are the fuel tax collections distributed?
A percentage of fuel tax collections is distributed to cities based on population and to counties based on road mileage and land valuation. The remainder is transferred to the Missouri Department of Transportation. The distribution of motor fuel tax is based upon Article IV, Section 30(a)(b) and (c) of the Missouri Constitution.
Is Sales Tax charged on motor fuels?
Please see the Tax Requirements of Clear and Dyed Motor Fuel
. For further information, you may contact our sales tax department at (573) 751-2836.
Are there any exemptions from tax on motor fuel at the time of purchase?
Yes, following are exemptions from Missouri’s fuel tax:
- All sales to federal government agencies
- Dyed diesel fuel and dyed kerosene
- Bulk sales of one hundred gallons or more of gasoline made to farmers and delivered by the ultimate vender to a farm location for agricultural purposes only (Ultimate vendor would apply for a refund)
Are federally funded agencies treated the same for tax purposes as federal government agencies?
No, only federal government agencies are exempt.
Is K-1 kerosene subject to the Missouri fuel tax?
Yes, unless the K-1 kerosene is dyed in accordance with IRS regulations or is purchased from an ultimate vendor from a barricaded pump. A barricaded pump prevents the kerosene from being dispensed into a vehicle fuel supply tank. An ultimate vendor may sell K-1 kerosene in quantities of 21 gallons or less from non-barricaded pumps without charging the motor fuel tax. The ultimate vendor would apply for a refund.
Refunds
How do I apply for a refund of fuel tax?
You may apply for a tax refund for purchases of clear fuel when the fuel is used for nonhighway purposes. You must apply for a refund within one (1) year from the date of purchase or April 15 following the year of purchase whichever is later. Original invoices or other documentation as allowed by the director must accompany all refund claims.
How do I obtain the fuel tax refund forms?
The refund application forms (Form 4923, Form 4924, and Form 4925) are available from any Missouri county clerk’s office, from Forms by Fax (573-751-4800), or may be downloaded from the motor fuel tax forms page. If you are unable to access these forms, you may also request them by telephone at 573-751-7671.
Reporting
May I deduct a bad debt on my fuel tax return?
Yes, if an “eligible purchaser” has failed to pay owed fuel tax. Licensed suppliers and permissive suppliers may take a deduction on their monthly report for fuel tax not received from their sales to a licensed distributor with "eligible purchaser status". You will first need to file a Supplier Notification of Uncollectable Tax (Form 4760) within 10 business days following the earliest date on which the supplier was entitled to collect the tax from the eligible purchaser. The credit is to be claimed by completing an Affidavit for Bad Debt Loss (Form 8A) and returning it with the first return following the the expiration of the ten-day period.
What is a “Diversion Number”?
Motor fuel must be delivered to the destination state as indicated on the terminal-issued shipping papers. If the motor fuel is diverted to a state other than the one listed on the shipping papers, a Diversion Number must be obtained and written on the shipping papers along with the new destination state. To register a diversion of fuel, go to www.trac3.net (leaving dor.mo.gov webspace), click on registration, enter requested company information and follow the simple steps. You will need to enter your company data only once. The TRACIII database will maintain basic company information for carriers and fuel marketers after the initial diversion registration. There is no cost to register a diversion; however, a membership can be purchased to access additional benefits of the system.
What is an “Import Verification Number”?
Anyone importing motor fuel into Missouri, who has not entered into a precollection agreement with their supplier or permissive supplier, must obtain an Import Verification Number. This number must be obtained at least 24 hours before importing the motor fuel into Missouri upon which this state’s motor fuel tax has not been paid. The Import Verification Number must be written on each copy of the terminal-issued shipping papers.
The “Import Verification Number” can be obtained by calling The Missouri Department of Revenue, Excise Tax Section at (573) 751-2611. In addition, all Missouri fuel tax and fees must be paid within 3 days of the importation of nonexempt motor fuel on a Three day Import Payment Voucher (Form 4707). An Import Verification Number is not required for tank wagon operations nor must the fuel tax be paid within 3 days, provided they are registered as a tank wagon operator.
Am I required to file on the forms that are issued by Missouri Department of Revenue or are computer-generated forms acceptable?
A computer-generated tax return may be used in place of the standard tax return issued by the department if the return includes all required information and is in a format that can be processed by our agency. The department must approve all computer-generated tax returns prior to filing. For additional assistance, please contact our office at (573) 751-2611.
How do I correct a motor fuel tax report that I previously filed?
There are two ways to correct an erroneous motor fuel tax report – an additional return or an amended return. The additional return is the most commonly used. This return adds or takes away any additional gallons from the original return. When filing an additional return please report only those gallons in which you are changing. An amended return is only filed when all information originally reported is incorrect. This type of return will replace all information that was first reported.
Does the state accept copies of returns by fax?
Yes, faxed returns are accepted at this time. Our fax number is (573) 522-1720. However, if you are filing a large return we ask that you mail it.
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