taxes

Diesel Fuel

Who is responsible for this tax?

The supplier or permissive supplier collects tax on:

  • The net gallons of diesel fuel removed from the terminal rack or imported into Texas, other than in the bulk transfer/terminal system.
  • The terminal operator in Texas unless at the time of removal the terminal operator has a terminal operator's license issued for the facility from which the diesel fuel is withdrawn, the terminal operator verifies that the person who removes the diesel fuel has a supplier's license, and the terminal operator does not have a reason to believe that the supplier's license is not valid.
  • The gallons of diesel fuel blended in Texas outside the bulk transfer/terminal system.
  • The gallons of diesel fuel brought into Texas in the fuel supply tanks of a commercial motor vehicle licensed as an interstate trucker, or an IFTA licensed vehicle.

(Texas Tax Code (TTC) 162.201)

Rates

Twenty cents ($.20) per gallon on diesel fuel removed from a terminal, imported, blended, sold to an unauthorized person or other taxable use not otherwise exempted by law. (TTC 162.202)

Deductions

When this tax is paid by the due date, suppliers and importers can apply a 2 percent discount, and distributors and importers a 1.75 percent discount.

Due Date

  • Suppliers, permissive suppliers, distributors, importers, exporters and blenders: monthly on the 25th day of the month following the end of the calendar month (for example, April 25 for March activity)
  • Dyed diesel fuel bonded users and interstate truckers (except IFTA licensed): quarterly on the 25th day of the month following the end of the calendar quarter (April 25, July 25, Oct. 25 and Jan. 25); or yearly, if qualified, on Jan. 25 (TTC 162.215)
  • IFTA licensees: quarterly on the last day of the month following the end of the calendar quarter (April 30, July 31, Oct. 31 and Jan. 31) (IFTA Articles of Agreement - R960)

If the due date is a Saturday, Sunday or a legal holiday, the next business day is considered the due date.

Penalties and Interest

Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

Select one of these payment methods:

$10,000 - $49,999

Select one of these reporting methods:

Select one of these payment methods:

$50,000 - $99,999

Electronic Data Interchange (EDI) is the only available reporting method.

Select one of these payment methods:

$100,000 or more

Electronic Data Interchange (EDI) is the only available reporting method.

Select one of these payment methods:

Import Verification and Diversion Numbers

To obtain an Import Verification Number on motor fuel transported into Texas by cargo tank, call us at 1-877-676-7811.

To obtain a Diversion Number on motor fuel delivered to a destination state different from the destination state printed on the bill of lading, delivery manifest or shipping document, call us at 1-877-976-7800.

Additional Resources