Deadline extended for filing refund requests on fuel taxes

Tax Commissioner Cory Fong has announced that eligible consumers have two extra days to request a refund of the state fuel taxes they paid on gasoline/gasohol purchased during 2011.

“The Tax Department extended the deadline because the traditional deadline falls on a Saturday this year,” said Fong. “We wanted to be sure that eligible consumers have time to apply for the refund. With the high gas prices these days, the gas tax refund is one way to offer a little relief to those eligible consumers, such as our agricultural producers and industrial contractors.”

State taxes paid on gasoline or gasohol purchased during 2011 to power farm, ranch and industrial equipment used off-road may qualify for the fuel tax refund. The deadline for applying for the refund is July 2, 2012.

Taxes paid for fuel to power farm and industrial equipment used off-road may qualify for the fuel tax refund. State law provides for the motor vehicle fuel tax refund for certain consumers, such as farmers and ranchers, using fuel in agricultural machinery and equipment.

“If a vehicle is required to be licensed, the fuel tax paid on the fuel used in that vehicle is not refundable,” said Fong. “The state offers to refund part of the taxes paid by industrial consumers, farmers and ranchers because their construction equipment, tractors and combines generally don’t run on public highways.”

Farmers and ranchers may receive a refund of 16 cents per gallon, and industrial consumers may request a refund of 22 and one-half cents per gallon for gasoline/gasohol purchased. Gasohol is a mixture of gasoline and ethanol, with the most common mixture of 90 percent gasoline and 10 percent ethanol.

Three different programs, including two agriculture-related programs, will receive a total of seven cents per gallon based on the refunds requested by agricultural producers.

*4 cents goes to the agriculture research fund created by the 1997 Legislature.

*The Agricultural Products Utilization Commission (APUC) receives 2 cents.

* 1 cent is provided to the state ethanol production incentive fund.

If a refund is not requested, the tax will stay in the Highway Distribution Fund.

The refund program provided the agricultural research fund more than $201,800, APUC received over $102,000 during fiscal year 2011, and the state ethanol production incentive fund received more than $50,400. The Tax Department issued refunds of over $1,052,500 dollars for about 6.3 million gallons of motor fuel during fiscal year 2011. Over 4,270 fuel tax refunds were issued with the average refund over $245.

“The gas tax refund is an important program and we want to be sure that eligible consumers don’t miss the deadline to apply for it,” said Fong. “I encourage consumers who think they are eligible to take the time to apply for the refund.”

Native American consumers who are enrolled members of the Turtle Mountain Band of Chippewa, Three Affiliated Tribes, Standing Rock Sioux, and Spirit Lake Tribes are not eligible for a refund of purchases made on their respective reservations because the tax they pay is a tribal tax that is distributed to the tribe.

Emergency medical services operations may request a refund of 23 cents per gallon for gas or non-dyed diesel and 8 cents per gallon of aviation fuel.

For more information on the motor fuel tax refund, visit the Tax Department’s website at www.nd.gov/tax or call the Motor Fuels Taxes Section, at 701-328-3126.

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