Top navigation skipped
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 | Applies only to suppliers who import motor fuel into Colorado in which the importer will be liable to pay the tax upon import. |
| 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.