Publication 510
taxmap/pubs/p510-009.htm#en_us_publink1000116917 | When this publication was prepared for printing, all or a
portion of the taxes on other fuels listed below (except compressed natural gas
(CNG) and liquefied natural gas (LNG)), were scheduled to expire on September
30, 2011. To find out if the taxes are extended, monitor the news media or go to
www.irs.gov, click on Forms and Publications, and then click on Changes
to Current Tax Products. |
Other Fuels means any liquid except gas oil, fuel oil, or any
product taxable under Internal Revenue Code section 4081. Other Fuels include
alternative fuels. Alternative fuels are:
- Liquefied petroleum gas (LPG),
- "P Series" fuels,
- Compressed natural gas (CNG) (discussed later),
- Liquefied hydrogen,
- Any liquid fuel derived from coal (including peat) through
the Fischer-Tropsch process,
- Liquid fuel derived from biomass,
- Liquefied natural gas (LNG), and
- Liquefied gas derived from biomass.
Liquefied petroleum gas includes propane, butane, pentane, or
mixtures of those products.
Qualified ethanol and methanol means any liquid at least 85 percent
of which consists of alcohol produced from coal, including peat. The tax rates
are listed in the Instructions for Form 720.
taxmap/pubs/p510-009.htm#en_us_publink1000116919A reduced tax rate applies to these fuels. Partially exempt ethanol
and methanol means any liquid at least 85 percent of which consists of alcohol
produced from natural gas. The tax rates are listed in the Instructions for Form
720.
taxmap/pubs/p510-009.htm#en_us_publink1000116920Motor vehicles include all types of vehicles, whether or not
registered (or required to be registered) for highway use, that have both the
following characteristics.
- They are propelled by a motor.
- They are designed for carrying or towing loads from one place
to another, regardless of the type of material or load carried or towed.
Motor vehicles do
not
include any vehicle that moves exclusively on rails, or any of the following
items: farm tractors, trench diggers, power shovels, bulldozers, road graders,
road rollers, and similar equipment that does not carry or tow a load.
Tax is imposed on the delivery of Other Fuels into the fuel supply
tank of the propulsion engine of a motor vehicle or motorboat. However, there is
no tax on the delivery if tax was imposed under the bulk sales rule, discussed
next, or the delivery is for a nontaxable use. If the delivery is in connection
with a sale, the seller is liable for the tax. If it is not in connection with a
sale, the operator of the vehicle or boat is liable for the tax.
taxmap/pubs/p510-009.htm#en_us_publink1000116922Tax is imposed on the sale of Other Fuels that is not in connection
with delivery into the fuel supply tank of the propulsion engine of a motor
vehicle or motorboat if the buyer furnishes a written statement to the seller
stating the entire quantity of the fuel covered by the sale is for other than a
nontaxable use listed in chapter 2. The seller is liable for this tax.
taxmap/pubs/p510-009.htm#en_us_publink1000116923See Form 720 and the Instructions for Form 720 for the tax rates.
taxmap/pubs/p510-009.htm#en_us_publink1000116924The nontaxable uses of Other Fuels (including alternative fuels)
are discussed in chapter 2.
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