Motor carrier fuel/Highway use/Mileage tax - Massachusetts

IFTA

Information regarding credits or refunds under IFTA is included in the IFTA Agreement Manual.

Massachusetts will allow full credit for tax paid fuel purchases on the quarterly IFTA return. Any excess of tax paid over tax liability in any member jurisdiction will be credited in full to the licensee’s tax liability in other member jurisdictions or to the licensee’s account ledger as appropriate.

Under IFTA, a licensee will receive full credit or refund for tax-paid fuel used outside the jurisdiction where the fuel was purchased. The base jurisdiction shall allow credits and issue refunds for all of its licensees on behalf of all member jurisdictions. Refunds to licensees will be made only when all tax liability, including audit assessments, have been satisfied to all member jurisdictions.

Turnpike Miles

Travel on the Massachusetts Turnpike may be reported as non-taxable miles on the IFTA quarterly Fuel Use Tax Return (but still are counted in the total miles calculation). In order to claim such travel as an exemption, the carrier must retain all turnpike receipts and fuel invoices. Fuel must have been purchased or transferred from bulk storage to the qualified vehicle within three days prior to its use on the Massachusetts Turnpike. Carriers claiming a fuel tax refund for tax-paid fuel used on the Massachusetts Turnpike must pay a 6.25% sales tax on the fuel.

PTO/Reefer fuel

Massachusetts does allow refunds for tax paid fuel used off-highway or in reefer units, providing the carrier paid tax on such fuel. Normally tax would not be paid at time of purchase, unless the fuel is consumed from the same fuel tank as the power unit. Refunds are then available if a refund application is filed, original fuel receipts are attached, and the application is filed within two years from date of fuel purchase.

Refunds of fuel used from the power unit fuel tank in power take-off (PTO) equipment or in reefer units are allowed, providing the carrier has adequate records to show how it arrived at the number of gallons consumed off-highway. Carriers must have metering devices or separate tanks.

When applying for a PTO, reefer, or off-highway refund, Form SF-9 “Special Fuel Refund” application must be filed. All refunds must be requested within two years from fuel invoice purchase date.