Motor Fuel Tax

To simplify the reporting of fuel used by interstate and inter-jurisdictional motor carriers, Maryland participates in the International Fuel Tax Agreement (IFTA). IFTA is an agreement among 48 participating states and 10 Canadian provinces which allows qualified commercial vehicles to travel throughout those jurisdictions and pay the required motor carrier taxes. Vehicles displaying valid licenses and decals issued by a base jurisdiction may travel in any other jurisdiction.

The Comptroller of Maryland was proud to be responsible for legislation which repealed the motor carrier decal fee beginning in 2001. The Motor Fuel Tax office added another high-tech convenience in 2002, which allowed motor carriers to submit their applications for IFTA decals over the Internet. Today, taxpayers can also file their quarterly IFTA motor carrier returns electronically and use a host of other online services.

For more information about IFTA qualifications or additional registration requirements under the Maryland Department of Transportation, see the links below or the MDOT Motor Carrier Program.

Motor Fuel Tax Rates by Gallon, Effective July 1, 2023
Motor Fuel Tax Rates by Gallon, Effective July 1, 2022
Motor Fuel Tax Rates by Gallon, Effective July 1, 2021
Motor Fuel Tax Rates by Gallon, Effective July 1, 2020

To review the most current motor fuel tax rates, see IFTA Motor Fuel Tax Rates on the IFTA Web site.

Note: These rates are provided only for your information and are not to be used to complete your quarterly tax return. The rates do not include the necessary jurisdiction codes needed to complete your return.

When filing your quarterly motor fuel tax return, you must use the rate schedule that was provided with your return. Jurisdiction codes will be provided online in the near future.

The resources posted in this section include legislative updates, administrative releases, bulletins, and notices that highlight important changes in laws, regulations and procedures regarding motor fuel taxes.

• Motor Fuel Tax Legislative Updates
• Motor Fuel Tax Releases
• Motor Fuel Tax Bulletins
• Motor Fuel Tax Notices
• COMAR Regulations

Biodiesel, a fuel made fully or partially from vegetable oils or animal fats, is subject to Maryland's motor fuel tax and sales and use tax.

The motor fuel tax applies to biodiesel as a special fuel that is useable as a fuel in an internal combustion engine. Biodiesel is typically produced by combining a vegetable oil or animal fat with an alcohol, in the presence of a chemical catalyst. In Maryland, straight vegetable oil (SVO) would be subject to the same motor fuel requirements as biodiesel when used as a motor fuel.

The state special fuel tax rate is $.2425 per gallon of motor fuel used.

Registration

In general, you must register with the Motor-fuel, Alcohol and Tobacco Tax Unit if you do any of the following in Maryland:

• Manufacture or produce biodiesel, even for your own use.
• Sell biodiesel that has not been taxed as diesel fuel.
• Use biodiesel that has not been taxed as diesel fuel to power a vehicle driven on roads or highways.
• Import biodiesel from another state.

If you make your own biodiesel and use it in a vehicle that will be driven on roads or highways, the tax is due when you put the biodiesel into the vehicle's fuel tank. If you are required to register, you must apply for a motor fuel tax license.  You will be issued a Special Fuel User or Seller License.  There is no fee for the license.

Bonds

As a user of biodiesel, you are not required to post a bond, unless you use more than 4,000 gallons per year.  Sellers of diesel fuel, however, are required to post a bond.

Filing requirements

After we issue your license, you will be required to file motor fuel tax returns. You will receive a motor fuel tax return approximately three weeks before the due date. You must file a return even if you do not have any activity for the reporting period.

Diesel fuel users have the option of filing and paying the motor fuel tax annually or monthly, until the usage rate exceeds 4, 000 gallons per year.

There are no state tax credits available for biodiesel fuel.

Additional information

For more information about biodiesel fuel, contact the following government agencies:

Maryland Department of Environment

1800 Washington Blvd.

Baltimore, MD 21230

Phone: 410-537-3000.

U.S. Environmental Protection Agency

Ariel Rios Building
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
Phone: 202-272-0167

Internal Revenue Service 

500 N. Capitol St. NW
Washington, DC 20221

Phone: Toll-free 1-800-829-4933 (businesses)

Looking for cheap gas?

Check out one of these Web sites below to compare local gas prices:

• MapQuest Gas Prices
• GasBuddy.com
• AAA Fuel Finder

Looking for ways to conserve gas?

Take public transportation, join a carpool and use hiker and biker trails whenever possible.

Need help pumping gas?

Visit Maryland Department of Transportation Access to Gas Pumpsto find a local gas station that offers assistance to consumers with disabilities.

Think you purchased bad fuel?

Tell us. Field inspectors for the Comptroller of Maryland are responsible for monitoring the transportation and storage of motor fuel, and verifying that retail locations are complying with regulations governing pricing, labeling and registration. Inspectors collect fuel samples and they are tested at the Motor Fuel Testing Laboratory in Jessup to ensure quality standards including octane levels. Any sub-standard or inaccurately labeled product is removed from the marketplace until the problem is corrected. E-mail fed@marylandtaxes.gov to report fuel price disparities or fuel problems.

Unsure about pump accuracy?

If you feel a particular gas pump may not be giving you all the gas you are paying for, report it to the Maryland Department of Agriculture (MDA). While the Comptroller's Office inspects fuel, the MDA is charged with making sure gas pumps and meters are accurate. If you think the amount of fuel you received falls short of the amount you purchased, contact the MDA's Weights and Measures Division at 410-841-5790.

Need to report a fuel spill?

If you need to report a fuel spill or leak, contact the Maryland Department of the Environment's Oil Control Program at 410-537-3442.

What makes up the price of a gallon of gasoline?

Crude oil costs: 68% of the cost of a gallon of gasoline directly reflects the cost that refiners pay to obtain the crude oil.
Refining costs: 8% of the cost of a gallon of gasoline reflects the costs to refine the crude oil, making it useful to consumers.
Federal and state taxes: 13% of the cost of a gallon of gasoline is made up of federal and state taxes, but does not include county or local taxes.
Distribution and marketing: 11% of the cost of a gallon of gasoline is made up of distribution, marketing and retail dealer costs.

Most gasoline is shipped by pipeline to consuming areas and then loaded into trucks for delivery at individual gas stations. The price reflects the retailer's purchase cost and operating costs associated with the service station. Additionally, the price can reflect the desirability of the station's location or the station owner's marketing strategies.
Note: This breakdown of the cost of a gallon of regular gasoline is based on the December 2012 average retail price of $3.31/gallon.

Why do gasoline prices fluctuate?

Gasoline prices can fluctuate for a variety of reasons including a change in seasons, natural disasters, local retail station competition, disruptions in the crude oil supply triggered by world events and/or refinery or pipeline outages.

Source: Energy Information Administration .

The forms contained in these pages are in the Adobe .PDF format (Portable Document Format). You must have version 6.0 or higher of the Adobe Reader program to view and print these forms. Adobe Reader is available for free online. Some of these forms also have been formatted with a fill-in feature that allows you to type information into them on your computer and then print out a paper copy. If you are having problems viewing Adobe .PDF files, please view our special instructions.

If you need a form that is not included in the list, please contact us.

International Fuel Tax Agreement (IFTA)

*IFTA-related forms may be requested at MFT@marylandtaxes.gov, or by calling Taxpayer Service at 410-260-7980, or 1-800-638-2937.

Motor Fuel Tax

Motor carrier returns

Motor carriers registered with Maryland under the International Fuel Tax Agreement (IFTA) must file quarterly IFTA fuel use tax reports by the following due dates noted in this chart:

The IFTA quarterly reports should be mailed to:

Comptroller of Maryland
IFTA
P.O. Box 2171.
Annapolis, MD. 21404-2171

Motor fuel reports

Dealers, distributors, special fuel sellers, special fuel users, and turbine fuel sellers, must file a report for each month in which they sell or use motor fuel in the state of Maryland.
For months when there is no activity, a report must be filed stating "No Activity." Please note that six or more consecutive months of "No Activity" may be grounds for license cancellation. This report must be filed on or before the last day of the following month. If mailed, the report must be postmarked at least two days prior to the last day of the month.

The motor fuel monthly reports should be mailed to:

Comptroller of Maryland
Revenue Administration Division
P.O. Box 2191
Annapolis, MD 21404-2191

Invoice Requirements

Only invoices that are issued at the time of each purchase can be accepted to support a claim. A separate invoice for each purchase must be sent with each claim for refund.

All refund claims must be supported by original invoices. If you submit copies of the original invoices, you must also include a statement that the originals are available for audit purposes. Carbon copies must also meet certain requirements, as discussed below and set forth in COMAR 03.03.02.02 (See COMAR Online).

To speed up the processing of your refund, add up all receipts for each vehicle and/or equipment, type of fuel, and month and make sure the totals match up with the information reported on your Refund Claim Form 706 (formerly GTD-106).

Carbon copies

Carbon copies of invoices will be accepted only if the copies were used in meter imprinters to print the number of gallons metered, or the copies are multi-part forms that meet the following conditions:

• The original (top part) is used as a shipping/delivery ticket.
• The form has been approved by the Comptroller.
• The part used as an invoice is preprinted with the notation "Original Invoice" or other language approved by the Comptroller.

Unacceptable documents

The following documents are not acceptable for refund purposes:

• Accounts receivable invoices.
• Buyback invoices, statements and assignments.
• Invoices that are stamped with the word "statement."

Invoices generated under the following circumstances will also be disallowed:

• Purchase invoices prepared by a claimant when the claimant operates the fuel dispenser (pump).
• Claims filed in absence of satisfactory records for auditing purposes whenever the seller does not prepare an actual invoice at the time of sale.

Credit card invoices

Credit card invoices must meet all the requirements of retail invoicing.
Supporting documentation must be sent to confirm that the account number belongs to the refund claimant.  You can send a bill or statement showing the account number with your name.

Service station invoices

The following information must be reported on fuel invoices from service stations and other retail dispensers:

• Actual date of purchase.
• Name, address/location of seller.
• Name of purchaser. (Purchaser's signature shall be accepted on electronically generated invoices.)
• Number of gallons purchased.
• Type of fuel and total cost of fuel.
• Serial or sequential numbers. (Time-referenced electronically generated invoices shall be accepted as serialized.)
• Run calculator tapes on retail invoices.

Prepaid invoices showing a dollar amount without the actual gallons dispensed will not be accepted as valid tax-paid invoices.

Bulk invoices

The following information must be reported on invoices submitted by a claimant for fuel delivered into the claimant's bulk storage tank:

• Actual date of delivery.
• Name and address of seller preprinted on the invoice.
• Name and address of purchaser.
• Amount of motor fuel tax charged. (If tax is not charged, enter the statement: "Maryland motor fuel tax is not included.")
• Number of metered gallons purchased.
• Type of fuel and total cost.
• Serial or sequential invoice numbers.
• Run calculator tapes on invoices by fuel type per month.

Detailed records, such as fueling tickets, logs or other accounting records prepared at the time any vehicles are fueled from bulk storage tanks, must also be retained for audit purposes.

Electronically generated invoices

Electronically generated documents must meet the requirements of COMAR 03.03.02 and must be approved for use by the Comptroller of Maryland.

The following information is pre-printed on the electronically generated documents:

• A breakdown of fuel purchases by vehicle.
• Total pages showing total gallons and fuel type.
• Site locations listed by number instead of address.
• List of location addresses.

All out-of-state purchases must be deducted from the totals that are to be reported on the claim form.

Readable microfiche copies

Invoices may also be supported by readable microfiche copies.

Bonded licensed special fuel users

Bonded licensed special fuel users seeking a refund claim for a power-take-off vehicle must submit copies of their user/seller receipts and disbursement schedules in lieu of the original invoices. For more information, see Power-Take-Off Refund - Class 50, 51, 52, 53 and 54.

Altered invoices

Any claims accompanied by altered invoices will be investigated thoroughly.  If the investigation proves that an invoice has been altered in any respect, the altered invoice may not be honored.

Power-Take-Off (PTO) - Maryland statute provides a percentage refund for five types of vehicles which have pumping or other equipment mechanically or hydraulically driven by the engine that propels the vehicle. The vehicle types and percentages of the total fuel used that is deemed refundable are: concrete mixing vehicles (35 percent), fuel delivery vehicles (10 percent), solid waste compacting vehicles (15 percent), well-drilling vehicles (80 percent), and bulk spreading agricultural highway vehicles (55 percent).

No additional categories of PTO vehicles have been introduced through legislation, nor do additional PTO categories qualify for any percentage refund when fueled directly from the tank that powers the vehicle engine.  Without separate flow meters the refundable gallons cannot be accurately measured. If you have a separate tank dedicated solely for the pony engine on the rear of your trucks, this would be fully refundable.

Nonrefundable gallons - Fuel used on-highway or for taxable purposes.

Refundable gallons - Fuel used off-road in equipment and machines; fuel used for any nontaxable purpose.

Worksheet - Record of gallonage totals of motor fuel used for taxable and non-taxable purposes. 

Questionnaire ‐ Form used to list equipment, type of fuel used, bulk storage tanks (quantity, size and location), and type of refund classification.

Claim form ‐ Form shows total of fuel purchases, nonrefundable and refundable gallons, amount of refund being requested, and signature of claimant.

Claimant - The individual or company applying for the refund for fuel used by them.

Retail service station - Gasoline station or filling station.

Bulk invoices - Invoices from sellers for bulk purchases that are put in bulk storage tanks of the refund claimant.

Bulk storage tanks - Tanks used to store bulk purchases of fuel.

Electronically generated invoices - Electronically generated invoices created by the retail seller of fuel from keycard purchases made by the refund claimant.

Metered gallons - Gallons that are preprinted on invoices by the meters on fuel delivery trucks, showing the total gallons of the fuel pumped into bulk storage tanks.

Reefers - Refrigerated trailers that are fueled directly into a separate tank on trailer.

Site location numbers - Some electronically generated invoices only show a site location number and not an address. A listing of site location addresses must also be submitted to verify that the fuel is purchased in Maryland.

Period of claim - The period during which the fuel was purchased. 

E-mail

You can e-mail your motor fuel tax refund questions to us at taxhelp@marylandtaxes.gov. Please include your business name, address and your nine-digit federal employer identification number (FEIN) or eight-digit Maryland central registration number in your e-mail message. This will help us generate a quick response to your inquiry.

Telephone Assistance

You can also obtain motor fuel tax and IFTA refund assistance over the phone by calling 410-260-7980 from Central Maryland, or toll-free 1-800-638-2937 from elsewhere in Maryland. Telephone assistance is available Monday through Friday, 8:00 a.m. - 5:00 p.m.

Fax

You can fax any necessary documents to us at 410-974-2243. Keep in mind that you cannot fax your fuel tax refund claim forms to us - the original, signed documents must be submitted.

Mailing Address

Mail your completed forms and related documents to:

COMPTROLLER OF MARYLAND
REVENUE ADMINISTRATION DIVISION
MOTOR FUEL TAX REFUND UNIT
110 CARROLL ST
ANNAPOLIS MD 21411-0001

The Inspection Program is comprised of Enforcement Agents and Compliance Inspectors who work as a team in their efforts to enforce and regulate the revenue laws involving alcoholic beverages, motor fuels, tobacco products, transient vendors and vendors at flea markets and other venues. Samples of the various grades of motor fuels sold in the state are collected daily to assure their compliance with state and federal regulations, as well as to assure that applicable taxes have been paid. Any substandard product is removed from the marketplace until the problem is corrected.

The transportation and storage of motor fuels is constantly monitored to verify that regulations governing pricing, labeling and registration are being followed. Investigations are conducted to identify and locate unlicensed fuel sellers, unregistered IFTA motor carriers and users who illegally use untaxed dyed fuel in highway vehicles.

Licensed alcoholic beverage retailers are likewise inspected to confirm their compliance with related laws, including efforts to defraud customers by altering the contents of more expensive beverages with less expensive brands while selling these products at the higher price. Investigations of unlicensed sellers are conducted across the state, resulting in arrests and confiscations of illegally sold items.

The sale of tobacco products are also monitored, with inspections of licensed establishments, as well as investigations of unlicensed sellers which result in arrest and confiscation of the items sold illegally (either without a license, or involving contraband untaxed cigarettes).

In addition, as mentioned, the agents and inspectors constantly look for unlicensed Transient Vendors, such as those selling furniture along our roadsides without licenses and not collecting related taxes, as well as vendors at sporting events and at flea markets who likewise do not possess the proper licenses and do not collect or remit related taxes.

The Comptroller's Motor Fuel Testing Lab in Jessup, Maryland began operation in 1974. The primary function of the lab is to analyze all incoming petroleum products for their quality and to make sure the fuel is in compliance with state regulations, as well as federal EPA guidelines. The laboratory is also equipped to run analysis of alcoholic beverages for proof verification using Gas Chromatography procedures. Gasoline and petroleum products are collected at the retail stations and bulk terminals throughout the state by the Comptroller's compliance inspectors also take monthly samples from bulk terminals at nearby Virginia and Pennsylvania locations, as fuels from these locations regularly enter the Maryland market.

TIPLINE: If you have information regarding fuel tampering or questionable octane levels e-mail FED at fed@marylandtaxes.gov.

The Comptroller's Office routinely tests the quality of motor fuels sold in Maryland. If you have a question or complaint about fuel quality, call 410-260-7388.

Maryland's testing program checks fuel quality at all points along the distribution chain, and stops the sale of fuel that does not meet accepted quality standards. The Comptroller maintains a petroleum testing laboratory, which is consistently recognized as a leader in its field. Samples representing about two billion gallons of gasoline, diesel fuel, home heating oil, and other fuels are tested each year. Only about 1 percent of the fuel tested is found to be substandard.

Definitions:

Consumer Price Index for All Urban Consumers (CPI): The CPI is the index published monthly by the Bureau of Labor Statistics for the U.S. Department of Labor. The CPI is the U.S. city average of all items in a basket of consumer goods and services.

Motor Fuel: Motor fuel consists of gasoline, special fuel, clean burning fuel, aviation gasoline, and turbine fuel. Gasoline includes both gasoline and ethanol that is blended into gasoline. Special fuel consists of diesel fuel and kerosene, while clean burning fuel includes propane, Compressed Natural Gas (CNG), and Liquefied Natural Gas (LNG).

What is the Transportation Infrastructure Investment Act of 2013?

The Transportation Infrastructure Investment Act of 2013 increases transportation funding, to the state's transportation trust fund, through various means including a motor fuel tax increase. Effective July 1, 2013, there will be additional motor fuel taxes on all motor fuels except aviation gasoline and turbine fuel. The additional taxes adjust for inflation using the CPI and also a percentage of the average retail price of gasoline. Other fees are also increased in this act but are not enforced by the Comptroller of Maryland.

What motor fuels are affected by this tax increase?

Gasoline, special fuels, and clean burning fuels are affected by this legislation. Aviation gasoline and turbine fuel will not be affected.

How is the motor fuel tax increased?

The motor fuel tax is increased using two methods:

• the average percentage growth in the CPI, and
• a percentage of the average retail price of gasoline, also known as the Sales and Use Tax Equivalent Rate.

How will the CPI tax increase be computed?

The CPI tax increase will be computed by the Comptroller’s Office. The percentage of growth will be determined by averaging the CPI for the 12 months preceding April 30th to the average index for the prior 12 months. This rate is multiplied by the current motor fuel tax rate to determine the increase in the motor fuel tax.

This increase took effect July 1, 2013, and may increase each July 1st thereafter. However, the motor fuel tax increase cannot be greater than 8% of the motor fuel tax rate effective in the previous year. Also, if there is a decrease or no growth in the CPI, the motor fuel tax will remain the same.

How does the average increase in the retail sales price of gasoline affect the tax increase?

This is known as the sales and use tax equivalent rate increase. However, it is not a sales tax but an increase to the motor fuel tax.

Again, this increase will be computed by the Comptroller’s Office. The Comptroller’s Office will determine the average annual retail price of regular unleaded gasoline, excluding federal and state taxes. The sales and use tax equivalent rate will be determined by multiplying the average annual retail price by the applicable percentage rate. This percentage varies each year until 2017 when it remains at 5%.

What are the percentage changes for the sales and use tax equivalent rate and dates the tax will change?

The percentage rate will change five (5) times within the next three (3) years when it will reach the full amount. The rate will be one percent (1%) starting on July 1, 2013, two percent (2%) on January 1, 2015, three percent (3%) on July 1, 2015, four percent (4%) on January 1, 2016, and five percent (5%) on July 1, 2016.

Can I use my sales tax exemption with the sales and use tax equivalent rate?

No, this is not a sales and use tax on motor fuel, but a motor fuel tax increase. If you have a valid motor fuel tax exemption that allows you to purchase tax-free motor fuel, you will still be allowed to purchase the motor fuel without the tax. Remember, if the fuel is used over the road (i.e. for a taxable purpose), you will be paying the current motor fuel tax with the increase.

What is the inventory adjustment?

The inventory adjustment is a floor tax on the remaining inventory in storage when there is a tax change. A physical inventory is compiled on the last day before the tax rate change, either due to a difference in the CPI and/or the sales and use tax equivalent rate. The taxpayer will report the inventory and tax due on Comptroller Form 779.

• History and Statement of Combined Applicable Motor Fuel Tax Rate
• History and Calculation of Motor Fuel Tax Rate - Indexed for Consumer Price Index
• History and Calculation of Sales and Use Tax Equivalent Rate

Licensing and Registration Information:
Phone: 410-260-7215
E-mail: MFTLicenses@marylandtaxes.gov

Motor Fuel Reporting Information:
Phone: 410-260-7980 from Central Maryland or toll-free 1-800-638-2937 from elsewhere in Maryland
E-mail: MFTReturns@marylandtaxes.gov

Motor Fuel Tax Refund Information:
Revenue Administration Division
Phone: 410-260-7922 (7923)
FAX: 410-974-2243
E-mail: taxhelp@marylandtaxes.gov

IFTA E-file Information:
Phone: 1-800-638-2937 or 410-260-7980 from Central Maryland
E-mail: IFTA_CARRIERS@marylandtaxes.gov

IFTA Reporting Information:
Phone: 410-260-7980 from Central Maryland or toll-free 1-800-638-2937 from elsewhere in Maryland
E-mail: IFTA_CARRIERS@marylandtaxes.gov
Fax: 410-260-7924

Below Cost Motor Fuel Complaints:
Field Enforcement Bureau
Phone: 410-260-7388 from Central Maryland or toll-free 1-888-674-0017 from elsewhere in Maryland
FAX: 410-974-5564
E-mail: fed@marylandtaxes.gov
Complaint form: Motor Fuel Below Cost Complaint - COM/FED-402

Mailing Address:

(IFTA & Motor Fuel Reporting)
Comptroller of Maryland
Revenue Administration Division
Motor Fuel Tax Unit
P.O. Box 1751
Annapolis, MD 21404-1751

(IFTA & Motor Fuel Licensing)
Comptroller of Maryland
Field Enforcement Bureau
Licensing & Registration Unit
P.O. Box 2397
Annapolis, MD 21404