Frequently Asked Questions
Motor Fuel Taxes
How can I get a copy of my tax return?
Businesses may request a copy by completing Form R-7004, Tax Information Disclosure Authorization. This form authorizes the one-time release of information to yourself or the appointee you list on the form. Instructions for the form can be found at http://www.revenue.louisiana.gov/Forms/ForBusinesses.
Act 130 of the 2015 Regular Session of the Louisiana Legislature amended LA R.S. 47:1507 to provide for fees for searching for tax returns and other documents, authenticating records, and certifying copies of tax returns and other documents (see Louisiana Administrative Code 61:III.1701). As of July 17, 2015, the fees are as follows:
- $15.00 for a copy of any tax return or other document previously filed by the taxpayer, or authorized representative, for each year or tax period requested, regardless of whether the requested return or document is located.
- $25.00 for each certified copy of a return or other document requested.
All fees must be paid when you submit Form R-7004, Tax Information Disclosure Authorization, by check or money order, made payable to the Department of Revenue. Cash cannot be accepted.
Form R-7004 and payment should be sent to the following address:
P.O. Box 201
Baton Rouge, LA 70821
Who is required to be licensed?
- Supplier who may also act as a terminal operator, permissive supplier, distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- Permissive supplier who may also act as a distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- Distributor who may also act as an importer, exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- Importer who may also act as a distributor, exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- Terminal operator.
- Motor Fuel Transporter.
- Interstate Motor Fuel User.
- Aviation Fuel Dealer.
Why do I need to appoint a Louisiana Registered Agent?
A Registered Agent is necessary to receive service of process on law suits. Many businesses have a Louisiana Registered Agent because the business is a Louisiana company or the business has registered with the Louisiana Secretary of State's Office. If a business does not have a Louisiana Registered Agent, the Secretary of State is designated as the agent for service of process on suits involving all foreign corporations not registered with the Secretary of State. The Secretary of State is designated as the agent for service of process on suits involving domestic corporations after a diligent effort but unsuccessful attempt has been made to serve the corporation.
What are the grounds for denial of a license?
- The secretary may refuse to issue a license if the applicant or any principal of the applicant:
- Had a license or registration issued under prior law or current law canceled by the secretary for reason as set forth in LA R.S. 47:818.42.
- Had a license or registration issued by another state revoked, denied, or canceled for cause.
- Had a federal certificate of registry issued under 26 USC 4101 or a similar federal authorization revoked.
- Has been convicted of any offense involving fraud or misrepresentation.
- Has been convicted of any other offense that indicates that the applicant may not comply if issued a license.
- Is in arrears to the state for any taxes.
- Is determined not to be the real party in interest.
- The applicant’s agents, officers, or employees have a prior conviction for motor fuel tax evasion in this state or any state, federal, or foreign jurisdiction.
- For good cause as determined by the secretary.
- No license shall be granted when the applicant or anyone connected with the applicant’s business has been previously convicted of any violation of LA R.S. 47:818.1 et seq. or of any felony under the laws of this state or of the United States.
- The secretary may refuse to issue a license if the applicant or any principal of the applicant:
Can my license be revoked?
Yes, the secretary may revoke the license of any person licensed upon written notice sent by certified mail to the licensee’s last know address appearing in the secretary’s files, for any of the following reasons:
- Filing a false report of the data or information required by the licensee.
- Failure, refusal, or neglect of the licensee to file a report or information required.
- Failure of the licensee to pay the full amount of all taxes, penalties and interest due.
- Failure of the license to keep accurate records of the quantities of gasoline or diesel fuel received, produced, refined, manufactured, compounded, sold, or used in Louisiana.
- Failure to file a surety bond as required by the secretary pursuant to LA R.S. 47:818.40.
- Conviction of the licensee, licensee’s agents, officers or employees, or a principal of the licensee for any act prohibited under this subpart.
- Failure, refusal, or neglect of a licensee to comply with any other provision of LA R.S. 47:818.1 et seq. or any rule promulgated.
- License or registration issued by another state was canceled for cause.
- Licensee is determined not to be the real party in interest.
- Any prior license of the real party in interest has been revoked for cause.
- The licensee, or any of the licensee’s agents, officers, or employees, has a prior conviction for motor fuel tax evasion in this state or any state, federal, or foreign jurisdiction and the conviction was not disclosed on the application.
What are the bond requirements for each license?
Bond requirements vary depending on the registration. The amount required is either the amount shown below for the respective license or an amount equal to three months tax liability, whichever is greater. The minimum amounts are:
Terminal Operator $1,000,000 Supplier $50,000 Permissive Supplier $50,000 Distributor $20,000 Importer $20,000 Exporter $20,000 Blender $20,000 Interstate Motor Fuel User $20,000 Motor Fuel Transporter $0 Aviation Fuel Dealer $0
If my surety bond was waived before July 1, 2006, do I need to post a new bond?
What are the different tax returns and their due dates?
Tax Return Due Date Supplier/Permissive Supplier Monthly Return 22nd day of the month following the period covered. Distributor/Exporter/Blender Monthly Return 20th day of the month following the period covered. Importer Monthly Return 15th day of the month following the period covered. Terminal Operator Annual Return Last day of February. Interstate Motor Fuel User Quarterly Return 25th day of the month following the period covered. Motor Fuel Back Up Tax Return 20th day of the month following the month the transaction occurred. The following information returns have a $100 penalty if not filed on or before the due date: Terminal Operator Monthly Return 20th day following the period covered. Motor Fuel Transporter Monthly Return 20th day following the period covered. Aviation Fuel Dealer Quarterly Return 25th day following the period covered.
What are my duties as a Supplier or Permissive Supplier Trustee?
- Fiduciary duty to remit to the Department of Revenue the amount of tax received. If you fail to remit the tax, you are liable for the taxes paid to you.
- Notify a licensed distributor, licensed exporter, or licensed importer who received gasoline or diesel fuel from you during a reporting period of the number of taxable gallons received.
- Notify the Department of Revenue within the time period established by the secretary if a licensed distributor, licensed exporter or licensed importer did not pay the tax.
- Cannot apply the payment of tax to a debt that the person making the payment owes for purchases of gasoline or diesel fuel.
Who is eligible for the discount?
Beginning July 1, 2015, Suppliers and Permissive Suppliers are eligible to receive the 0.5% discount if they allow licensed Distributors and Importers a discount of 0.33%. Prior to this date, a discount of 1.5% was granted to eligible Suppliers and Permissive Supplies if they allowed licensed Distributors and Importers a discount of 0.5%.
If you underpay but file on time do you get the discount?
No, returns must be fully paid and timely filed to receive the discount.
Who is eligible for the discount from the Supplier or Permissive Supplier?
Licensed Distributors and Importers are eligible for the 0.33% discount.
If a Supplier or Permissive Supplier has a credit on Line 2 of their return, is it necessary to reduce the refund by the discount?
If I am a licensed Supplier or Permissive Supplier can I defer the inspection fee to a licensed distributor or importer to the 20th of the month?
Yes, since the inspection fee is due at the same time as the tax.
Who is allowed to take the credit for tax on reported bad debt?
Suppliers and Permissive Suppliers can only take the credit for the tax amount not received from their licensed Distributors or Importers.
Are there a maximum number of credits a Supplier or Permissive Supplier can take?
Does the Supplier or Permissive Supplier have to notify the department before taking the credit for tax on reported bad debt?
Yes, they must notify the Department within 30 days from the date the tax was due from the licensed Distributor or Importer.
Can an exporter apply for a refund on fuel that is exported with Louisiana tax and/or fee paid?
Yes, if all statutory requirements are met. LA R.S. 47:818.37(A) provides that no person shall engage in or do business in this state in any of the following capacities without having first obtained the appropriate license(s):
- A supplier who may also act as a terminal operator, permissive supplier, distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- A permissive supplier who may also act as a distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- A distributor who may also act as an importer, exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- An importer who may also act as an exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
- A terminal operator.
- An exporter.
- A motor fuel transporter.
- A blender.
- An interstate motor fuel user.
- An aviation fuel dealer.
If appropriately licensed, per LA R.S. 47:818.37(B), the exporter may apply for a refund of taxes paid.
If clear fuel is dumped in a dyed fuel tank is there an allowance that can be taken to get the tax back?
- Possibly. You should file a claim for refund as follows:
- Complete a Form R-20127, Claim for Refund of Taxes Paid, which can be downloaded from the Department’s website at www.revenue.louisiana.gov;
- Attach a notarized statement certifying that the tax was paid on the clear fuel at the time purchased; and
- Attach a copy of the invoice showing the number of gallons being claimed and a statement attesting to the facts.
- After the facts and documents supporting the claim for refund are filed and reviewed, the taxpayer will be notified of the Department’s decision.
Can you get a refund on clear kerosene and/or diesel used in an off-road manner? If so, what documentation is needed?
A refund of fuel taxes paid is allowed only if dyed kerosene or diesel is unavailable. To qualify for a refund, Form R-5377, Registration Application for Diesel Fuels Refund, must be submitted to the Department for review. If approved, a Diesel Fuel Refund Certificate will be issued and purchases of clear kerosene or diesel made on or after the effective date of the certificate may be eligible for refund.
Form R-5015, Claim for Refund of Fuel Tax on Undyed Diesel Fuels, must be filed with the department accompanied by the original service station invoices and withdrawals tickets from bulk storage or in lieu of invoices, a computer record generated for the seller may be provided. The invoices and tickets must include the following information:
- Name and address of the dealer
- Name and address of the user (purchaser)
- Unit number, number of gallons purchased, price per gallon, total price and date of purchase
Can I be charged with a misdemeanor for any violation? Is there a penalty?
Yes, the following offenses are considered prohibited acts, subject to misdemeanor charges. If you are found guilty of a misdemeanor, and convicted, you will be fined not less than $1,000 nor more than $5,000 or imprisoned not more than two years, or both:
- Failure to maintain any record required by LA R.S. 47:818.1 et seq.
- Making a false statement in a license application, return, invoice, statement, or any other document required by the Department.
- Making a false statement in an application for a refund.
- Failure to make a required disclosure of the correct amount of gasoline or diesel fuel sold or used in this state.
- Failure to file a new, replacement, larger, or additional surety bond as required.
- Use, deliver, or sell any aviation fuel for use or intended for use in highway vehicles.
- Interference with or refusal to permit seizures.
- Deliver gasoline or diesel fuel from a transport vehicle to the fuel supply tank of a highway vehicle.
- Dispense or allow to be dispensed any gasoline on which tax levied has not been paid into the supply tank of a vehicle, watercraft, or aircraft.
- Dispense any diesel fuel on which tax levied has not been paid into the supply tank of a highway vehicle required to be licensed.
- Purchase gasoline or diesel fuel from an unlicensed Supplier, unlicensed Permissive Supplier, unlicensed Importer or unlicensed Distributor.
Under what circumstances can I be charged with a felony? Is there a penalty?
If you commit any of the following offenses, with the intent either to evade or circumvent the tax levied by LA R.S. 47:818.1 et seq. or to assist any other person in an effort to evade or circumvent the tax levied are considered prohibited acts and subject to felony charges. If you are found guilty and convicted, you will be fined not less than $5,000 nor more than an amount commensurate to the amount of tax combined with interest and penalties lost to the state due to those actions or imprisoned with or without hard labor for not less than two nor more than ten years, or both.
- Alter, manipulate, replace, or in any other manner tamper of interfere with, or cause to be altered, manipulated, replace, tampered, or interfered with, a totalizer attached to gasoline or diesel fuel pumps to measure the dispensing of gasoline or diesel fuel.
- Failure to pay gasoline or diesel fuel taxes and divert the tax proceeds for other purposes.
- As a licensee or the agent or representative of a licensee, convert or attempt to convert gasoline or diesel fuel tax proceeds for the use of the licensee or the licensee’s agent or representative, with the intent to defraud this state.
- Collect gasoline or diesel fuel taxes when not authorized or licensed by the secretary to do so.
- Import gasoline or diesel fuel into this state in contravention of LA R.S. 47:818.1 et seq.
- Conspire with any person or persons to engage in an act, plan, or scheme to defraud this state of gasoline or diesel fuel tax proceeds.
- Alter or attempt to alter the strength or composition of any dye or marker in any dyed gasoline or diesel fuel.
- Fail to remit to the secretary any tax levied, if the person has added or represented that the tax was added to the sales price of the gasoline or diesel fuel and has collected the amount of the tax.
What is the taxability of biodiesel?
Biodiesel is treated like any other diesel fuel, regardless of formulation. If biodiesel is used in a vehicle licensed for highway use, the biodiesel should be clear and is subject to tax. If biodiesel is used in a vehicle not licensed for highway use, the biodiesel must be dyed and is subject to the inspection fee only.
If I produce biodiesel am I a blender?
No, adding finished biodiesel to petroleum diesel, you would be blending. If you are producing biodiesel, you are considered in the same light as a producer of motor fuel, and would be subject to the same licensing requirements.
Is ethanol taxable?
Yes. Ethanol is taxed in the same manner as gasoline.
What is the tax rate on Gasoline, Diesel and Special Fuels?
Gasoline, diesel and special fuels, other than compressed natural gas (CNG), liquefied natural gas (LNG) and liquefied petroleum gas (LPG) are taxed at a rate of $.20 per gallon.
For more information on CNG, LNG or LPG please refer to the FAQ’s on Special Fuels Tax.
How much is the Inspection Fee per gallon?
The Inspection Fee is $.00125 per gallon.
Can a supplier collect destination state taxes and/or fees as well as Louisiana taxes and/or fees?
No, a supplier should never collect both state’s taxes and/or fees.
Can tax free transactions occur in the pipeline?
Yes, a tax free transaction can only occur in the pipeline if all parties involved in the transaction have a valid Louisiana Supplier or Permissive Supplier license as long as the transfer of the product does not “break bulk”, otherwise, the tax is to be collected from the person ordering the sale or transfer in the bulk transfer/terminal system.
Examples of when Motor fuel is not considered to be in the bulk transfer/terminal system includes the following:
- When in a motor fuel storage facility including but not limited to a bulk plant that is not part of a refinery or terminal;
- When in the motor fuel supply tank of any engine or motor vehicle;
- When in a marine vessel transporting motor fuel to a motor fuel storage facility that is not in the bulk transfer/terminal system;
- or when in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation or any movement by pipeline or vessel whose operators are not licensed and registered as required by the Internal Revenue Service.
What is a diversion and how is a diversion reported?
A diversion is an accidental or deliberate transporting of motor fuel from the source to a destination other than the original destination state printed on the shipping document. Prior to any diversion or change to the shipping document, the Shipper, the Motor Fuel Transporter, or an agent of either must notify TRAC III of the diversion in order to receive a diversion number. Once the diversion number is obtained, the Shipper, the Motor Fuel Transporter, or agent of either, must manually write the change in the destination state and the diversion number on the shipping document. A copy of the amended shipping document must be given to the person to whom the gasoline or diesel fuel is delivered.
How do I register with TRAC III to notify a state of a diversion?
In order to register a diversion of fuel, go to http://www.trac3.net/, click on "Registration", enter requested company data (for the initial registration only), and follow the simple steps. There is no cost to register a diversion.
Can a penalty be assessed for a diversion?
Yes, a penalty may be assessed in an amount equal to tax and fee on the product or $1,000 whichever is greater against the person who diverts the shipment or alters the shipping document.
Are there any penalties for engaging in business without a license?
Yes, any person engaging in or doing any business activity for which a license is required is subject to penalties, if he has not obtained and retained the required valid license. For the first violation, the amount is $10,000 and for each subsequent violation, the penalty is multiplied by the sum of the current violation plus prior violations. LA R.S. 47:818.45.
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