Rajan Wilcox
In the United States, fuel is subject to federal excise taxes, which are implemented by every state. The federal excise tax on diesel fuel is 24.4 cents per gallon, and state and local taxes add an average of 35.89 cents to diesel fuel, bringing the total US volume-weighted average fuel tax to 60.29 cents per gallon for diesel. In Florida, fuel tax is due on the 20th of each month for the previous month, quarter, or half of the year, and fuel producers and vendors are responsible for filing fuel tax reports to the state government. While the sources do not provide a specific value for the tax on diesel fuel in Florida, the state does levy excise taxes on other types of fuel, such as aviation fuel, CNG, LNG, and jet fuel.
| Characteristics | Values |
|---|---|
| Federal excise tax on diesel fuel | 24.4 cents per gallon |
| Total US volume-weighted average fuel tax on diesel | 60.29 cents per gallon |
| Florida excise tax on LNG | Section 206.9955, Florida Statutes (Retail - Exempt until 2019) |
| Florida excise tax on CNG | Section 206.9955, Florida Statutes |
| Florida excise tax on Aviation Fuel | Section 206.9825, Florida Statutes |
| Florida excise tax on Jet Fuel | Section 206.9825, Florida Statutes |
| Payment deadline | 5:00 p.m., ET, on the business day prior to the 20th of each month |
| Late payment penalty | 10% of tax due for each month the return is late, up to a maximum of 50% and a minimum of $10 |
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What You'll Learn
Florida's diesel tax is 24.4 cents per gallon
In addition to the federal tax, state and local taxes and fees are applied to fuel. On average, as of April 2019, state and local taxes added 35.89 cents to the price of diesel per gallon. This brings the total US volume-weighted average fuel tax to 60.29 cents per gallon for diesel.
In Florida, fuel tax is paid by fuel vendors, who pass the cost on to consumers in the retail price. Fuel tax is due on the 20th of each month for the previous month, quarter, or half of the year. Fuel producers and vendors are responsible for filing fuel tax reports to the Florida government.
Some policy advisors believe that an increased fuel tax is necessary to fund and sustain the country's transportation infrastructure. Additionally, a higher tax could encourage reduced consumption and lessen America's dependence on foreign oil.
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Federal tax on diesel hasn't increased since 1993
The federal tax on diesel fuel in the United States is currently 24.4 cents per gallon. This rate also applies to retail diesel fuel, which includes an excise tax of 24.3 cents per gallon and a Leaking Underground Storage Tank fee of 0.1 cents per gallon. The last time the federal tax on diesel fuel was raised was on October 1, 1993, and it has remained unchanged since then, not being indexed to inflation.
Since 1993, the federal tax on diesel fuel has been static at 24.4 cents per gallon (with a slight variation of 24.3 cents per gallon as per some sources). During this period, inflation has risen significantly, resulting in an overall inflation rate of 111% from October 1993 to December 2023. This means that the purchasing power of the fixed-rate diesel tax has decreased over time. In other words, the same tax rate from 1993 is worth less money in real terms when adjusted for inflation.
Despite the effects of inflation, the federal tax rate for diesel fuel has not been adjusted since 1993. This lack of adjustment is in contrast to the changing landscape of infrastructure costs and vehicle fuel efficiency. As a result, the revenue generated from the fixed-rate diesel tax has effectively diminished in value over the years.
Some policy advisors advocate for an increased diesel tax to address the funding requirements of the country's transportation infrastructure. They argue that the current tax rate may not be sufficient to sustain and develop the necessary infrastructure. To compensate for the loss in purchasing power due to inflation, the National Surface Transportation Infrastructure Financing Commission recommended a 15-cent increase in the diesel tax in a 2009 report.
While there have been proposals to raise the federal tax on diesel fuel, it has remained at the same level since 1993. This prolonged stability in the tax rate has resulted in a growing gap between the nominal tax value and the inflation-adjusted value. As inflation continues to rise, the impact of the fixed-rate diesel tax on purchasing power diminishes.
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Florida fuel tax due dates
In Florida, fuel vendors and producers are responsible for paying fuel excise taxes and filing the relevant fuel tax reports to the Florida government. The state and federal excise taxes amount to about 13% of the cost of a gallon of gas.
The International Fuel Tax Agreement (IFTA) requires licensees to complete and file an IFTA tax return and Schedule 1 every quarter. The due date for each quarter is the last day of the month following the end of that quarter. For example, the due date for the first quarter (January-March) is April 30th. The Bureau of Commercial Vehicle and Driver Services (Bureau) sends a courtesy email reminder about 30 days before each filing due date. This email includes a personalized tax return form, which must be completed, signed, and submitted before the applicable delinquent date.
If the due date falls on a Saturday, Sunday, or state legal holiday, the next business day is considered the due date. Tax returns submitted by mail must have a legible postmark, and if the return is being submitted close to the due date, it is the tax filer's responsibility to ensure the post office cancels the postage with a postmark that indicates the date of cancellation. Tax returns submitted online are considered filed upon completion. If a return is late, a delinquency penalty of 10% of any tax due will be added for each month, or portion of a month, that it is late, with a maximum penalty of 50% and a minimum of $10.
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Florida's LNG excise tax
In Florida, Liquefied Natural Gas (LNG) is subject to a state excise tax outlined in Section 206.9955 of the Florida Statutes. This tax was implemented at the retail level and was exempt until 2019.
Excise taxes on fuel are levied by every state in the US, and Florida is no exception. While the primary excise taxes on fuel in Florida are on gasoline, the state also taxes other types of fuel products, including LNG. The tax is paid by fuel vendors, who typically pass the cost on to consumers through the retail price of the fuel.
The Florida fuel excise tax is due on the 20th of each month for the previous month, quarter, or half of the year. For special fuel, the tax is due on July 1st for annual payments, January 1st and July 1st for semi-annual payments, and January 1st, April 1st, July 1st, and October 1st for quarterly payments. Fuel producers and vendors in Florida are responsible for remitting the excise tax payments and filing the necessary fuel tax reports with the Florida government.
Penalties for late payments or returns can be significant. A delinquency penalty of 10% of the tax due is added for each month or portion of a month that a return is late, with a maximum penalty of 50% and a minimum of $10. To avoid penalties, fuel vendors must ensure timely payments and returns, with electronic payments required by 5:00 p.m. ET on the business day before the due date.
While the LNG excise tax in Florida is an important source of revenue for the state, it is just one component of the overall fuel tax landscape in the US. Federal fuel taxes, which were last raised in 1993, play a significant role in funding the country's transportation infrastructure. However, some policy advisors advocate for an increased tax to address the declining purchasing power of fixed-rate gas taxes due to inflation and improvements in vehicle fuel efficiency.
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Florida's Jet Fuel excise tax
In Florida, jet fuel is subject to a state excise tax under Section 206.9825 of the Florida Statutes. This tax is typically paid by fuel vendors and producers, who are also responsible for filing fuel tax reports to the Florida government, and is eventually passed on to the end consumer in the fuel's retail price.
The federal excise tax on jet fuel, or kerosene for use in aviation, is generally $0.244 per gallon. However, a reduced rate of $0.219 is applied when the kerosene is removed directly from an on-airport terminal (ramp) and placed directly into the fuel tank of an aircraft for non-commercial aviation use.
The proceeds from federal fuel taxes are used to support transportation infrastructure. In the Fiscal Year 2016, federal fuel taxes raised $36.4 billion, with $26.1 billion from gasoline taxes and $10.3 billion from diesel and special motor fuel taxes.
In Florida, fuel tax payments are due on the 20th of each month for the previous month, quarter, or half of the year. Special fuel tax payments are due on July 1st for annual, January 1st and July 1st for semi-annual, and January 1st, April 1st, July 1st, and October 1st for quarterly payments.
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Frequently asked questions
In the United States, the federal excise tax on diesel fuel is 24.4 cents per gallon. On average, state and local taxes add 35.89 cents to diesel, for a total US volume-weighted average fuel tax of 60.29 cents per gallon for diesel.
Payments of fuel excise taxes are made by fuel vendors, who pass on the taxes in the fuel's retail price.
Fuel tax is due on the 20th of each month for the previous month, quarter, or half of the year.
If your payment or return is late, a delinquency penalty of 10% of any tax due will be added for each month, with a maximum penalty of 50% and a minimum of $10.
Federal fuel taxes raised $36.4 billion in Fiscal Year 2016, with $10.3 billion raised from diesel and special motor fuel taxes.
