Mercedes Mullins
The US state of Maine levies a number of different taxes on fuels such as gasoline and diesel. These include sales taxes, excise taxes per gallon, and taxes on wholesalers or retailers. The price for dyed, off-road diesel does not include the Maine motor fuel excise tax, but it is subject to a sales tax of 5.5% based on the retail sales price. Gas taxes are intended to serve as user fees and pollution deterrents, and the revenues are used to fund highway repair and maintenance, as well as other government infrastructure projects.
| Characteristics | Values |
|---|---|
| Type of tax | Excise tax, sales tax |
| Who pays the tax | Fuel vendors, not end consumers |
| When is the tax due | 21th of each month for the previous month |
| Who needs to register | Gasoline distributors, special fuel suppliers |
| Dye in diesel | Not subject to motor fuel excise tax, but subject to 5.5% sales tax |
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What You'll Learn
Maine's excise tax on diesel fuel
In Maine, gasoline and other fuel products are subject to excise taxes, which are implemented by every state. The primary excise taxes on fuel in Maine are on gasoline, though most states also tax other types of fuel. For example, Aviation Fuel is subject to a state excise tax of $0.30.
Licensed Special Fuel Suppliers may buy and sell motor fuels exempt from Maine excise tax. To qualify as a supplier, a company must sell primarily to others in bulk. Registered suppliers and distributors, however, may only buy and sell motor fuels with Maine excise tax included in the price.
On-road diesel used for off-road purposes may be eligible for an excise tax refund. The application and instructions for the Off-highway refund can be found on the Fuel Tax Forms page. Dyed, off-road diesel is not subject to the motor fuel excise tax, but it is subject to a sales tax of 5.5% based on the retail sales price.
Excise taxes on fuel are levied in a few ways, including per-gallon excise taxes, excise taxes imposed on wholesalers, and general sales taxes that apply to the purchase of gasoline. These taxes are paid by fuel vendors and are passed on in the fuel's retail price.
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Sales tax on dyed distillates
In Maine, dyed distillates are not subject to motor fuel excise tax but are subject to a sales tax of 5.5% based on the retail sales price. This sales tax must be included in the pump price for dyed distillates.
In addition to (or instead of) traditional sales taxes, gasoline and other fuel products are subject to excise taxes on both the Maine and Federal levels. The primary excise taxes on fuel in Maine are levied on gasoline, though most states also tax other types of fuel. For example, aviation fuel is subject to a state excise tax of $0.30 in Maine. Payments for fuel excise taxes are made by fuel vendors and passed on in the fuel's retail price.
Excise taxes are commonly levied on specific goods or activities, such as cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting. They typically constitute a relatively small and volatile portion of state, local, and federal tax collections.
Fuel tax is due on the 21st of each month for the previous month, except for special fuels, which are due on the last day of each month for the previous month. Fuel producers and vendors in Maine are responsible for filing various fuel tax reports with the state government.
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Gasoline distributors and special fuel suppliers
In Maine, gasoline and other fuel products are subject to excise taxes on both the state and federal levels. Licensed Gasoline Distributors and Licensed Special Fuel Suppliers may buy and sell motor fuels without paying the Maine excise tax. However, Registered suppliers and distributors must include the Maine excise tax in the price of the fuel they buy and sell within the state.
To become a Licensed Gasoline Distributor or a Licensed Special Fuel Supplier, a company must sell primarily to others in bulk. Licensed Special Fuel Suppliers are also permitted to import and export on-road fuel, as well as sell on-road fuel to other Licensed Special Fuel Suppliers, the US Government, and state and political subdivisions without collecting the Maine State Excise Tax. They must collect this tax, however, when on-road fuel is delivered into a retail tank equipped to fuel a motor vehicle or sold to any non-exempt entity.
Licensed Gasoline Distributors are required to file a monthly Gasoline Distributors (GAS) return by the 21st of each month, reporting the gross gallons bought and sold in the previous calendar month. Licensed Special Fuel Suppliers must file a monthly Special Fuel Supplier (SFS) return by the last day of each month, detailing the number of gross gallons bought, sold, or used in the previous month.
For tax registration, there are checkboxes for Registered or Licensed Gasoline Distributors and Special Fuel Suppliers. To register as a Licensed Gasoline Distributor or Special Fuel Supplier, companies must complete Sections 1 and 6 of the Application for Tax Registration, as well as Section 4 for sales tax registration. To register as a Registered Gasoline Distributor or Special Fuel Supplier, companies must complete Sections 1 and 5 of the application.
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Gas tax registration
For gasoline distributors and special fuel suppliers in Maine, tax registration is essential. Licensed distributors and suppliers can buy and sell motor fuels exempt from the state's excise tax, while registered distributors and suppliers include the excise tax in their fuel prices. To become a licensed distributor or supplier, a company must sell primarily to others in bulk.
For first-time users registering for gas tax in Maine, the process involves selecting the "Register" option on the website. They will need to provide company, owner, contact, and banking information, along with creating a secure username and password specific to Maine EZ Pay. The password must be at least 12 characters long and include a mix of uppercase and lowercase letters, numbers, and special characters.
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Gas tax refunds
Licensed Special Fuel Suppliers and Licensed Gasoline Distributors in Maine can buy and sell motor fuels without paying the Maine excise tax. To qualify as a Licensed Gasoline Distributor, a company must sell primarily to others in bulk. Registered suppliers and distributors, on the other hand, must include the Maine excise tax in the price of motor fuels they sell in the state.
The primary excise taxes on fuel in Maine are levied on gasoline, though aviation fuel is also taxed at $0.30. Gas taxes in Maine are due on the 21st of each month for the previous month, except for special fuels, which are due on the last day of the month.
Gas taxes are implemented at both the state and federal levels and are used to fund highway repair, maintenance, and other government infrastructure projects. While gas taxes are intended as user fees and pollution deterrents, their effectiveness is decreasing due to the rise of electric vehicles and improved fuel efficiency. As a result, some states are considering replacing gas taxes with vehicle miles travelled (VMT) taxes.
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Frequently asked questions
In Maine, diesel fuel is subject to a sales tax of 5.5% based on the retail sales price.
Yes, the pump price for diesel distillates must include the 5.5% sales tax.
Although fuel vendors pay the excise tax, it is passed on to the consumer in the retail price.
Licensed Fuel Suppliers may buy and sell motor fuels exempt from Maine excise tax. Registered suppliers may only buy and sell motor fuels with Maine excise tax included in the price.
