Aviation Fuel Tax
Aviation Fuel Sales Tax Return
Colorado state and state-collected local sales tax is due on aviation jet fuel used in turbo-propeller or jet engine aircraft. Sales tax is charged on the purchase price of the fuel. The purchase price may include the cost of fuel, state and federal excise taxes, and any airport fuel flowage fees.
The amount of aviation jet fuel sold (retail sales) is reported when the retailer/distributor files their Colorado Aviation Fuel Tax Return and Reporting Form. Retail sales tax filers will report on the Aviation Fuel Sales Tax Return (DR 1510). The entity who sells the fuel to the end user is responsible for remitting the aviation fuel sales tax. Only fuel is reported on the Aviation Fuel Sales Tax Return (DR 1510).
The revenues generated from the state sales tax are transferred to the aviation fund as required by statute (43-10-109(1) C.R.S.). Tires, motor oil and other aviation items are reported on the Retail Sales Tax Return (DR 0100).
Special Taxation Districts
RTD (Regional Transportation District) tax must be paid if the sales are made within the boundaries of the districts. RTA (Rural Transportation Authority) tax must be paid if sales are made within the boundaries of the RTA districts. Applicable county, city and other local jurisdictional taxes must be remitted on this form.
If sales or use tax is imposed on the sale, the fee is subject to state and/or jurisdictional taxes that apply to the sale. By statute, jet fuel or gasoline used for aviation can be subject to a fuel flowage (in-plane) fee imposed by the airport. This fee is part of the retail purchase price.
Add or Delete Retail Locations
Submit a Aviation Fuel Sales Tax Return (DR 1510). Contact the Fuel Tax unit at (303) 205-8205, option 2 or send a web message through Revenue Online for jurisdictional codes and additional information.
Aviation Fuel Excise Tax
Aviation fuel taxes (gasoline and jet) are due when acquired and removed from the terminal rack. Three tax-deferred transactions are allowed between Colorado licensed distributors. The tax rate for aviation gasoline is 6 cents per gallon. The tax rate for aviation jet fuel is 4 cents per gallon. When reporting aviation fuel disbursements, you must provide the airport destination in Column 4 Distributor Schedule of Disbursements Worksheet (DR 7056). The Federal Aviation Administration airport code is used to report the destination airport.