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IRS.gov Website
Publication 510
taxmap/pubs/p510-005.htm#en_us_publink1000116837

Gasoline and Aviation Gasoline(p5)

rule
taxmap/pubs/p510-005.htm#en_us_publink1000116838

Gasoline.(p5)

rule
Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. Gasoline includes any gasoline blend other than:Gasoline also includes gasoline blendstocks, discussed later.
taxmap/pubs/p510-005.htm#en_us_publink1000116839

Aviation gasoline.(p5)

rule
This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572.
taxmap/pubs/p510-005.htm#en_us_publink1000116840

Taxable Events(p5)

rule
The tax on gasoline is $.184 per gallon. The tax on aviation gasoline is $.194 per gallon. When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $.141 per gallon. See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later.
Tax is imposed on the removal, entry, or sale of gasoline. Each of these events is discussed later. Also, see the special rules that apply to gasoline blendstocks, later.
If the tax is paid on the gasoline in more than one event, a refund may be allowed for the "second" tax paid. See Refunds of Second Tax in chapter 2.
taxmap/pubs/p510-005.htm#en_us_publink1000116841

Removal from terminal.(p5)

rule
All removals of gasoline at a terminal rack are taxable. The position holder for that gasoline is liable for the tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116842
Two-party exchanges.(p5)
In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply.
taxmap/pubs/p510-005.htm#en_us_publink1000116843
Terminal operator's liability.(p6)
The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant.
However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116844

Removal from refinery.(p6)

rule
The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. The refiner is liable for the tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116845
Exception.(p6)
The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met.
taxmap/pubs/p510-005.htm#en_us_publink1000116846

Entry into the United States.(p6)

rule
The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. The enterer is liable for the tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116847
Importer of record's liability.(p6)
The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant.
However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116848
Customs bond.(p6)
The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false.
taxmap/pubs/p510-005.htm#en_us_publink1000116849

Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator.(p6)

rule
The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. The position holder is liable for the tax. The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. However, see Terminal operator's liability under Removal from terminal, earlier, for an exception.
taxmap/pubs/p510-005.htm#en_us_publink1000116850

Bulk transfers not received at approved terminal or refinery.(p6)

rule
The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply.
  1. No tax was previously imposed (as discussed earlier) on any of the following events.
    1. The removal from the refinery.
    2. The entry into the United States.
    3. The removal from a terminal by an unregistered position holder.
  2. Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel).
The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. The operator is jointly and severally liable if the owner does not meet these conditions.
taxmap/pubs/p510-005.htm#en_us_publink1000116851

Sales to unregistered person.(p6)

rule
The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier.
The seller is liable for the tax. However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax.
The buyer of the gasoline is liable for the tax if the seller meets these conditions. The buyer is jointly and severally liable if the seller does not meet these conditions.
taxmap/pubs/p510-005.htm#en_us_publink1000116852
Exception.(p6)
The tax does not apply to a sale if all of the following apply.
taxmap/pubs/p510-005.htm#en_us_publink1000116853

Removal or sale of blended gasoline.(p6)

rule
The removal or sale of blended gasoline by the blender is taxable. See Blended taxable fuel under Definitions, earlier.
The blender is liable for the tax. The tax is figured on the number of gallons not previously subject to the tax on gasoline.
Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. See Form 720 to report this tax. You also must be registered with the IRS as a blender. See Form 637.
However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel.
taxmap/pubs/p510-005.htm#en_us_publink1000116854

Notification certificate.(p6)

rule
The notification certificate is used to notify a person of the registration status of the registrant. A copy of the registrant's letter of registration cannot be used as a notification certificate. A model notification certificate is shown in the Appendix as Model Certificate C. A notification certificate must contain all information necessary to complete the model.
The certificate may be included as part of any business records normally used for a sale. A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. The registrant must provide a new certificate if any information on a certificate has changed.
taxmap/pubs/p510-005.htm#en_us_publink1000116855

Additional persons liable.(p6)

rule
When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on:
taxmap/pubs/p510-005.htm#en_us_publink1000116856

Gasoline Blendstocks(p7)

rule
EIC
Gasoline blendstocks may be subject to $.001 per gallon LUST tax as discussed below.
Gasoline includes gasoline blendstocks. The previous discussions apply to these blendstocks. However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $.001 per gallon or are not subject to the excise tax.
taxmap/pubs/p510-005.htm#en_us_publink1000116858

Blendstocks.(p7)

rule
Gasoline blendstocks are:
However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline.
taxmap/pubs/p510-005.htm#en_us_publink1000116859

Not used to produce finished gasoline.(p7)

rule
Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met.
taxmap/pubs/p510-005.htm#en_us_publink1000116860
Removals and entries not connected to sale.(p7)
Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant.
taxmap/pubs/p510-005.htm#en_us_publink1000116861
Removals and entries connected to sale.(p7)
Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements.
taxmap/pubs/p510-005.htm#en_us_publink1000116862
Sales after removal or entry.(p7)
The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. The seller is liable for the tax. However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements.
taxmap/pubs/p510-005.htm#en_us_publink1000116863

Certificate of buyer.(p7)

rule
The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. The certificate may be included as part of any business records normally used for a sale. A model certificate is shown in the Appendix as Model Certificate D. The certificate must contain all information necessary to complete the model.
A certificate expires on the earliest of the following dates. The buyer must provide a new certificate if any information on a certificate has changed.
The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer.
taxmap/pubs/p510-005.htm#en_us_publink1000116864

Received at approved terminal or refinery.(p7)

rule
The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements.
taxmap/pubs/p510-005.htm#en_us_publink1000116865

Bulk transfers to registered industrial user.(p7)

rule
The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline.
taxmap/pubs/p510-005.htm#en_us_publink1000274791

Credits or Refunds.(p7)

rule
A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. For more information, see chapter 2.