Yes. All motor fuels are taxed at the same rate. This includes gasoline, ethanol, ethanol blends, diesel, biodiesel, biodiesel blends, and compressed fuels such as propane. Aircraft fuels (gasoline and jet fuel) are taxed at different rates.
Click here for current Fuel Tax Rates. It is subject to change every January 1 and July 1.
No. Gasohol and biodiesel are taxed at the same rate as gasoline and diesel. Currently, there is a transferable credit available on the production of ethanol within Nebraska but there are no special incentives available on biodiesel.
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Importing, exporting, or transporting motor fuels. |
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Purchasing motor fuels for resale purposes. |
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Having the capability to fuel licensed vehicles with compressed fuels. |
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Producing ethanol or biodiesel within Nebraska. |
First, you need to review the information on this Web site. Many of your questions will be addressed. Click here for the Nebraska Motor Fuels License Application, Form 20MF. If you still have questions, contact us and one of our Account Representatives will guide you through the licensing process.
Yes. As a retailer, you will need to obtain a license, however, there are no returns to file and the bonding requirement has been waived. In lieu of the filing requirement, you are subject to an on-site review of your records to ensure all fuel is properly tax-paid.
Yes and no. Products defined as motor vehicle fuel (gasoline, gasohol, ethanol) are never subject to sales tax, regardless of their use. Other fuels (diesel, propane) are subject to sales tax when consumed other than to propel a vehicle.
The most common example is compressed fuel (propane) when it is sold in bottles for barbecue grills. Another example is diesel fuel used to power a refrigeration unit (reefer).
Nebraska allows one tax-free "passthrough" following the sale by the first owner (supplier), provided, it and the subsequent purchasers are properly licensed. For example, a supplier (position holder) may sell fuel tax-free to a licensed distributor who may sell it tax-free to a licensed wholesaler who must pay the applicable tax.
Likewise, a supplier may sell tax-free to a licensed distributor who may sell tax-free to another licensed distributor but that distributor may not sell the fuel tax-free.
It is transmitted via EDI (electronic data interchange). You may either develop your own software using our mapping instructions or acquire commercial software. Click here for details.
Yes. We have developed "online" filing options for three of our smaller programs. Once registered, you are able to access and complete your return online. This option is limited to our consumer’s use, carrier report, and compressed fuel tax programs.
If your average yearly combined fuel tax liability exceeds $20,000, all monies must be remitted via EFT (electronic funds transfer). While we strongly encourage the use of EFT, if your yearly liability falls under the $20,000 threshold, you may remit monies via check. For EFT details, click here.
Yes, for all licensees except carriers and motor fuel retailers. For the first year of operation, new licensees must post a bond equal to three times their monthly liability. There are also minimum bond amounts established for each class of license. This bond must be issued by a surety company licensed to do business in Nebraska. No other method of satisfying the bond requirement is available. At the end of 12 months the bond may be cancelled; provided, a good filing history has been established.
All returns are due on the 25th of the month following the close of the reporting period. If the 25th falls on a Saturday, Sunday, or holiday, the return is due the following business day. EDI transmissions must be transmitted prior to midnight of the due date.
Yes, it is the Petroleum Release Remedial Action Fee, commonly referred to as PRF (perf). It is imposed on the owner of the fuel when it is either withdrawn from a Nebraska terminal or imported into Nebraska. There are different rates for motor vehicle fuels and other petroleum products. While not subject to fuel tax, dyed diesel is subject to PRF.
Diesel that is indelibly dyed at the terminal is not subject to tax. However, it is subject to an environmental fee, the Petroleum Release Remdial Action Fee (PRF). This is calculated and remitted by filing the Nebraska Monthly Fuel Tax Return, Form 73.
Yes, commissions are allowed for each reporting period. For gasoline, ethanol, ethanol blends, and aircraft fuels, the commission is 5% of the first $5,000 in tax collected and 2.5% of the excess over $5,000. For diesel, biodiesel, biodiesel blends, and compressed fuels, the commission is 2% of the first $5,000 in tax collected and 0.5% of the excess over $5,000.
No, with one exception, that exception being sales to the federal government.
Beginning January 1, 2005, you may file a claim for refund of that tax, provided the claim is for $25.00 or greater. Certain documentation must be included, such as a description of your operations, type of equipment, copies of purchase invoices, and copies of withdrawal logs. Click here for the Nebraska Motor Fuels Tax Refund Claim, Form 84.
If dyed, it is not taxed and is solely intended for non-highway use. The consumption of dyed diesel in a licensed motor vehicle subjects the owner to substantial fines.
If undyed, the exemptions available are extremely limited. First, sales to the federal government are exempt. Also exempt are sales of 50 gallons or less for use in power takeoff or reefer units, provided the appropriate exemption certificate is issued.
Yes, of course the preferred procedure is to consume dyed diesel and thereby avoid payment of the tax. However, if you do consume tax-paid diesel in equipment not required to be licensed to operate on the highway, you may claim a refund of that tax. Click here for the Nebraska Motor Fuels Tax Refund Claim, Form 84.
Refund claims may be filed monthly with a minimum amount of $25.00.
Contact the Internal Revenue Service at 1-866-699-4096 or visit their web site at: http://www.irs.ustreas.gov/.
These programs are administered by the Nebraska Department of Motor Vehicles. Call them at 1-888-622-1222 or visit their web site at: http://www.dmv.state.ne.us/mcs.
No. The Winnebago, Santee-Sioux, and Omaha tribes have each entered into an agreement with the state. The terms of these agreements allow each tribe to collect a "tribal tax" on their respective reservations, equal in rate and basis with the state fuel tax. The agreements further provide that the tribe and the state share this "tribal tax" in a predetermined ratio.
Generally, if the purchase is billed directly to, and paid by the federal agency, it is exempt from Nebraska tax. However, if the purchase is billed to the employee who in turn, is reimbursed by the federal agency, it is subject to Nebraska tax. The taxability of the transaction can be determined by the sequence of numbers on the credit card. Please refer to the FTA Bulletin entitled “Taxability of Purchases made with Federal Employee’s Credit Cards” for a complete discussion of this issue.
No. Hybrid vehicles are propelled by both an alternative fuel, such as electricity, and either gasoline or diesel. Examples of hybrid vehicles include the Honda Insight and the Toyota Prius. You merely pay the appropriate motor fuel tax on the gasoline or diesel consumed in the vehicle.
Yes. Electricity, solar power, or any other power source not otherwise taxed under the motor fuel laws, is considered an "alternative" fuel. Any vehicle "solely" powered by an alternative fuel is subject to a fee, imposed at the rate of $75 per registration year. This fee will be collected by the Nebraska Department of Revenue subsequent to notification by the county treasurer registering the vehicle.
