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Motor Fuel Tax

Frequently Asked Questions





Sections:
  • Motor Fuel Tax

  • Licensing and Bonding

  • Tax Returns and Payments

  • Motor Fuel Refunds



  • Motor Fuel Tax

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

  • 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.

  • What is the refined fuel surcharge?

  • 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.

    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 and Payments

    Who must file a tax return?
    When is the tax return due?
    What if the due date is on a weekend or holiday?
    I did not have any sales this month. Do I still need to file a tax return?
    How do I file my tax return?
    What happens if I do not file my tax return by the due date?
    When is the tax payment due?
    How can I make a tax payment?
    What happens if I do not submit my payment by the due date?
    Will I be charged interest?


  • Who must file a tax return?

  • Anyone with a qualified dealer license issued by the Department of Revenue must file a tax return. A dealer must file a separate return for each fuel type.

  • When is the tax return due?

  • Tax returns are filed monthly. The tax return is due on the last day of the month following the month in which the fuel was sold or transferred. For example, the tax return for sales made in March is due April 30.

  • What if the due date is on a weekend or holiday?

  • If the due date falls on a weekend or holiday, the tax return is due the next business day. A holiday means an Alaska state holiday or a bank holiday observed by the Federal Reserve System. Holidays include Seward’s Day in March and Alaska Day in October but do not include other states’ holidays such as Emancipation Day.

  • I did not have any sales this month. Do I still need to file a tax return?

  • Yes. A tax return must be filed each month, regardless of whether sales occurred or not.

  • How do I file my tax return?

  • Effective July 1, 2017, all tax returns must be filed electronically using Revenue Online . If you are unable to file a return electronically, please contact the Tax Division at 907.269.6620.

  • What happens if I do not file my tax return by the due date?

  • Returns that are not filed by the due date are subject to a failure to file penalty of 5% of the unpaid tax for each 30 day period or portion of a period the return is late, up to a maximum of 25%.

  • When is the tax payment due?

  • The tax payment has the same due date as the tax return. The weekend and holiday rule also applies to payments.

  • How can I make a tax payment?

  • Payments can be made by Automated Clearing House (ACH) debit payments using Revenue Online. Payments can also be made by wire transfer, check, or cash.

    Vouchers to include with your payment are available in Revenue Online and include all necessary instructions.

    The Department of Revenue cannot accept ACH credit or credit card payments.

    Please note that if your total payment exceeds $100,000 you are required to pay electronically or by wire transfer.

  • What happens if I do not submit my payment by the due date?

  • If the full amount of tax is not paid when due, a failure to pay penalty of 5% of the unpaid tax may be assessed for each 30 day period or portion of the period the payment is late, up to a maximum of 25%.

    If during any period, or portion of a period, both the failure to file and failure to pay penalties are applicable, only the failure to file penalty is imposed.

  • Will I be charged interest?

  • Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or delinquent tax. Interest is compounded quarterly at the applicable rate each quarter. See here for the current interest rate.

    Motor Fuel Refunds

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

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