Excise taxes are imposed on all the following fuels.
- Gasoline, including aviation gasoline and gasoline blendstocks.
- Diesel fuel, including dyed diesel fuel.
- Diesel-water fuel emulsion.
- Kerosene, including dyed kerosene and kerosene used in aviation.
- Other Fuels (including alternative fuels).
- Compressed natural gas (CNG).
- Fuels used in commercial transportation on inland waterways.
The following terms are used throughout the discussion of fuel taxes. Other terms are defined in the discussion of the specific fuels to which they pertain.taxmap/pubs/p510-002.htm#en_us_publink1000116801
Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats.taxmap/pubs/p510-002.htm#en_us_publink1000116802
This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. taxmap/pubs/p510-002.htm#en_us_publink1000116803
Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751.taxmap/pubs/p510-002.htm#en_us_publink1000116804
This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. taxmap/pubs/p510-002.htm#en_us_publink1000116805
This is the person that produces blended taxable fuel. taxmap/pubs/p510-002.htm#en_us_publink1000116806
This is the transfer of taxable fuel by pipeline or vessel. taxmap/pubs/p510-002.htm#en_us_publink1000116807
This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. taxmap/pubs/p510-002.htm#en_us_publink1000118031
Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants).taxmap/pubs/p510-002.htm#en_us_publink1000116808
A diesel-water fuel emulsion means an emulsion at least 14% of which is water. The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003.taxmap/pubs/p510-002.htm#en_us_publink1000116809
This is the importer of record (under customs law) for the taxable fuel. However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. If there is no importer of record, the owner at the time of entry into the United States is the enterer. taxmap/pubs/p510-002.htm#en_us_publink1000116810
Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. This does not apply to fuel brought into Puerto Rico (which is part of the U.S. customs territory), but does apply to fuel brought into the United States from Puerto Rico. taxmap/pubs/p510-002.htm#en_us_publink1000116811
Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. taxmap/pubs/p510-002.htm#en_us_publink1000116812
Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. It includes the alternative fuels: LPG, "P Series" fuels, CNG, liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid fuel derived from biomass, LNG, and liquefied gas derived from biomass. See Alternative Fuel Credits in chapter 2.taxmap/pubs/p510-002.htm#en_us_publink1000116813
This is the person that operates a pipeline within the bulk transfer/terminal system. taxmap/pubs/p510-002.htm#en_us_publink1000116814
This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. A terminal operator that owns taxable fuel in its terminal is a position holder. taxmap/pubs/p510-002.htm#en_us_publink1000116815
This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. taxmap/pubs/p510-002.htm#en_us_publink1000116816
This is any person that owns, operates, or otherwise controls a refinery. taxmap/pubs/p510-002.htm#en_us_publink1000116817
This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. taxmap/pubs/p510-002.htm#en_us_publink1000116818
This is a taxable fuel registrant (see Registration Requirements, later).taxmap/pubs/p510-002.htm#en_us_publink1000116819
This is any physical transfer of taxable fuel. It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. taxmap/pubs/p510-002.htm#en_us_publink1000116820
See Renewable Diesel Credits in chapter 2.taxmap/pubs/p510-002.htm#en_us_publink1000116821
For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. taxmap/pubs/p510-002.htm#en_us_publink1000116822
This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. taxmap/pubs/p510-002.htm#en_us_publink1000116823
This means gasoline, diesel fuel, and kerosene.taxmap/pubs/p510-002.htm#en_us_publink1000116824
This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. taxmap/pubs/p510-002.htm#en_us_publink1000116825
This is any person that owns, operates, or otherwise controls a terminal. taxmap/pubs/p510-002.htm#en_us_publink1000116826
This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). taxmap/pubs/p510-002.htm#en_us_publink1000116827
This is the person that operates a vessel within the bulk transfer/terminal system. However, vessel does not include a deep draft ocean-going vessel.