Federal & State Regulations | Motor carrier fuel/Highway use/Mileage tax - Minnesota

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
Has three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

All fuel usage of gasoline, special diesel, gasohol, and liquefied petroleum gas (LPG) in Minnesota must be reported on the quarterly IFTA tax return.

Intrastate vehicles are not reportable even if the carrier is operating a mixed fleet. The vehicles must, however, display a Minnesota base plate.

IFTA fees

IFTA license, $15

IFTA decals $13 filing fee plus $2.50 per vehicle

Temporary decal permit

A 30-day temporary decal permit is available from the state for free.

Fuel use tax

Motor carriers operating in Minnesota are required to obtain a Minnesota Tax Identification Number. The application must be filed whether or not a tax ID number has already been assigned. The Tax Identification number does not replace the current fuel license number, but will be used in addition to the license number to process payments and refunds.

Mileage/Highway use taxes

There are no highway use taxes charged in Minnesota.

Tax refunds or credits

If a motor vehicle or a licensed motor vehicle s used entirely off the public highways in Minnesota, a refund or credit of the tax paid on gasoline or special fuel is allowable. If a motor vehicle or a licensed motor vehicle is used both on and off the public highways, a refund or credit of the tax paid on gasoline or special fuel used for purposed other than propelling the vehicle on the public highways is allowable provided such claim is supported by complete and detailed records that will clearly and accurately establish such amounts of fuel.

Such records shall include, but not be limited to, all of the following information which is applicable to the claimant’s situation: Type of operation, dates of opera tion, miles travelled on public highways, miles travelled on private roads, hours of travel off the public highways, age of equipment, and results of test determining engine performance during off-highway use. Estimates of such amounts, regardless of how reasonable they may be, are not acceptable.

IFTA

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

PTO/Reefer fuel

Minnesota allows refunds (for both diesel and gasoline) of tax paid fuel used in power-take-off (PTO) equipment. Refunds for fuel used in reefer units and off-highway are also available. Fuel consumed during idling time is not eligible for refund.

All claims for refund must be submitted to the Department of Revenue on Form PDR-1 (Minnesota Motor Fuel Refund), plus a PTO Worksheet if filing for a refund of PTO fuel. Claims must be filed within one year of the date of purchase, or as often as monthly. All refund claims must have attached the original sales ticket or bulk fuel invoices or a signed dealer affidavit.

The Commissioner will accept alternative records, including computer listings or electronically generated listings of fuel purchased as long as they clearly provide the necessary information. If the claim is for fuel withdrawn from your tax-paid bulk storage, detailed disbursement records must be kept. Information should include:

Date of disbursement.
Number of gallons withdrawn.
Description of PTO unit or auxiliary engine.

The rules specify what percentage of fuel consumed in units such as concrete pumpers, garbage trucks, self-loaders, and dump trucks will be deemed to have been used in powering the exempt PTO function.

['Fleet Taxes']

['Highway use - Mileage tax']

...

Motor carrier fuel/Highway use/Mileage tax - Minnesota