Everything you need to know about fuel tax refunds

In 1933, the federal gasoline excise tax was implemented and taxed each gallon of gas at one cent. Current federal gasoline rates in May 2019 have escalated to 24.4 cents for each gallon of diesel and 18.4 cents per gallon of gas.

These tax refunds can reduce fuel costs, but still a lot of companies lose a lot of money each year by not accurately filing for fuel tax refunds.

When you purchase gasoline or diesel fuel, the federal government isn’t the only one taking a cut. You’ll also be taxed on gasoline by your state. Each state has its discretion as to the gallon rate of fuel you buy. States such as Pennsylvania, California, and Washington are at the highest level. Their tax rates range from 49.5 cents per gallon to 58.7 cents per gallon. States like Alaska, Virginia, and Missouri are at the low level with a range of 8.9 cents per gallon to 17.3 cents per gallon.

It would be impractical to set up separate gas stations and fuel depots all over the country to sell different taxed and untaxed fuels, so the government essentially taxes all fuels with a few exceptions, then allows credits for nontaxable uses. 

In most states and for the federal government, motor fuel excise taxes are collected and designated for highway and road construction and maintenance. Fleets using fuel for powering vehicles and equipment at off-road applications may qualify for federal and state-level refunds. 

Link2Pump can easily track and reconcile all information needed for filing fuel tax refund claims with a one-click report. It is really easy to save money with our service. 

The best part is that facilitating the tax refunds process is part of our service and you don’t pay anything extra for it. 

So with Link2Pump you automate your managing process, you have up to 25% fuel saving, plus 10 hours in time savings and also fuel tax refunds made easy.

If you want to learn more about our solution and are looking for alternatives to improve bottom line and productivity, please, get in touch.