Highway use tax refund on fuel used boating?

Fastguy888 · April 20

The post got me thinking and googling. Why do us boaters have to pay the Highway Use Tax on fuel used for boating? I am not a qualified tax preparer but possibly we are eligible for a refund? https://www.cdtfa.ca.gov/lawguides/vol3/mvftl/mvftl-8101.html Has anyone explored this?

Drago · April 20

I was told absolutely can be written off, but also a red flag.

S1Pitts · April 20

In our part of the world there are a few pumps designated Marine but it really is off road use gas that can be used on boats, snowmobiles, quads, etc.
It is dyed normally purple to identify it and usually is premium grade but sold at regular low octane prices. It helps a bit and do not get caught running it on highway unless you want to pay some big time fines.

Kelvin · April 20

Can't be a red flag in Texas. Its a separate refund request form and we don't have an income tax. If asked, you may need to supply receipts.

tlarocque · April 21

I plan to take advantage of this in WA this summer. Wish I had known about it sooner.

https://www.dol.wa.gov/vehicleregistration/docs/BoatFuelTaxRefund.pdf

RichardDoane · April 21

in WA state, you save your receipts, create an account with the Dept. of Revenue, and the submit a form for reimbursement at the end of the year. It's easy to do, and they send you a check in 4-6 weeks. Depending on how much you use, it is worth the time to jump through the hoops

buoyboy1 · April 21

In NC I use form GAS-1201 for off-highway gas refund. I have been doing that for 20 years and it has saved me anywhere from .14 to .19 cents a gallon. I have a 270 gallon tank at my house and use non-ethanol fuel so not many receipts to keep track of since I only fill it up once or twice a year. It takes me about 30 mins at the end of the year to fill out the form and mail it in. I also include the diesel fuel that I use for my Kubota. Well worth my time and hassle free. It is due by April 15 of the following year but I always like to submit in Jan so the refund check gets back to me sooner.

KRoundy · April 21

@RichardDoane THANK YOU! I had no idea. I'm going to start saving my receipts!

DW · April 21

Always nice to find savings although given the poor condition of US roads, that is one tax I don't feel too aggrieved in paying as a value should come from it. If you can't tow your boat to its favorite launch the savings may not mean that much. Similar to paying school taxes without any participation, the next generations education is of paramount importance.

GaryJanzig · April 21

In Pennsylvania we track the gas we buy for marine use when renewing registration. The highway tax money from the gas is re-allocated to the fish and game commission.

jpwhit · April 21

I'm in NC but have never tried to do this before. When you say save receipts, how does that prove the gas was used off-road? Or do the receipts have to be from somewhere like a Marina? If that's the case, it's not worth it for me.

Or is it just to prove you at least bought that much gas and you are declaring by submitting the form it was used off-road?

BrennanKMN · April 21

@buoyboy1

It only saves you $0.20 a gallon? I assume it is only state level?

Here in MN gasoline has a $0.285 state tax and a $0.184 federal tax for each gallon. The station I used to frequent had red-dye diesel (off road) which is fairly common out of the cities, but I have never seen an off road gasoline pump. That sure would be slick.

For the 150-200 gallons of fuel I use at $0.20 the $40.00 bucks saved probably isn't worth the time.