Skip navigation
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

Collecting the Destination State’s Tax on Gasoline and Diesel Fuel Sold for Export

A licensed supplier must collect the Texas tax, or be licensed and collect the destination state’s tax, on all gasoline and diesel fuel removed from a terminal in Texas for export to another state.

Texas licensed suppliers (position holders) are required to collect Texas tax on gasoline and diesel fuel removed from a terminal located in Texas for export to another state, unless

  • the purchaser is a licensed exporter (or importer, distributor, permissive supplier, or supplier);
  • the shipping document issued by the terminal indicates a destination other than Texas; and
  • the supplier (position holder) is licensed to collect and collects the destination state’s tax.

How to Report Gallons Sold for Export

Gallons sold for export on which Texas tax is collected should be reported on Line 12 (gallons removed from IRS registered … tax collected by the supplier) of the Texas Motor Fuels Tax Return.

Gallons sold for export on which the destination state’s tax is collected should be reported on Line 16 (gallons sold tax free for export) of the Texas Motor Fuels Tax Return.

The following list indicates whether a Texas supplier (position holder) can obtain a destination state’s license to collect the destination state’s tax. This information is current as of September 2020.

STATE CAN OBTAIN A DESTINATION STATE'S LICENSE ADDITIONAL PROVISIONS
Alabama Yes
Alaska Yes
Arizona Yes
Arkansas Yes
California No
Colorado Yes
Connecticut No
Delaware No
Florida Yes
Georgia No
Idaho No
Illinois No
Indiana No
Iowa Yes
Kansas Yes
Kentucky Yes
Louisiana Yes
Maine No
Maryland No
Massachusetts Yes
Michigan Yes
Minnesota No
Mississippi Yes
Missouri Yes
Montana No A Texas seller may collect Montana tax if Montana licensed distributor is doing business in Montana as a wholesaler.
Nebraska No
Nevada No
New Hampshire No
New Jersey No
New Mexico Yes If registered in New Mexico as a distributor AND has a signed agreement (form RPD-41309) on file with the New Mexico Taxation and Revenue Department.
New York No
North Carolina Yes
New Dakota No
Ohio Yes
Oklahoma Yes
Oregon No
Pennsylvania No
Rhode Island No
South Carolina Yes
South Dakota Yes
Tennessee Yes
Utah No
Vermont No
Virginia Yes
Washington No
West Virginia Yes
Wisconsin Yes
Wyoming No

NOTE: Texas suppliers (position holders) collecting the destination state’s tax must contact the destination state to determine whether environmental, inspection, or other fees should also be collected on gallons sold in Texas for import into their state. For information on your tax responsibility in other states, please visit the Federation of Tax Administrators Motor Fuels Tax Uniformity Project webpage.

HB855 Browser Statement

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.

We support: