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Fuel Taxes | Account / License
Gasoline and Special Fuel
Exempt Use of Fuel
Colorado allows a refund of fuel tax paid for gasoline, aviation fuel, and special fuels. The allowance of the refund depends on how the fuel is used, the type of fuel, and if and when the fuel excise tax was paid.
Refund Application Procedures
To apply for a refund permit and account you must complete a
Gasoline/Special Fuel Tax Refund Permit Application (DR 7189)
and submit it to the Colorado Department of Revenue. The application may be submitted before or at the time of the first refund claim. Upon approval of the application, the department will issue a refund permit/account number and refund claim forms with the approved exemption percentage to calculate the amount of the refund allowed. Written notification will be sent four to five weeks after the application is received at the Department of Revenue. The approved exemption percentages are established from the historical average in an industry or from an industry study provided by an industry group. Your application must identify the industry that accurately describes your business, fuel use, and equipment.
If you are licensed for the International Fuel Tax Agreement (IFTA), you must mark the “yes” checkbox on the application.
Any changes in the nature of the business, account name, DBA, ownership, address, equipment, storage capacity, or fuel use must be sent in writing to the:
Colorado Department of Revenue
Excise Tax Section, Room 200
PO Box 17087
Denver, CO 80217-0087
Refund permits/accounts are not transferable. A new application must be submitted for new businesses or changes in ownership.
Change in Business Operations Affecting Fuel Use and the Exempt Percentage
If you have a change in business operations, which affects your business’s fuel use on an established account, provide the Excise Tax Section with information to support the change for review and approval. Documentation must be submitted to show
the business change,
change in equipment, and
the change in operations to include exempt, non-exempt, and total fuel usage.
The documentation must include actual records for a year to account for cyclical or seasonal change affecting the business. Suggested data might include equipment and vehicle records and fuel use, actual mileage over the road, miles per gallon, and include inventory records of fuel and equipment. Any request for a change without supporting documentation will be disallowed. Accessing your Exempt Fuel Refunds Account in Revenue Online. See
How to Sign Up for Access
. Once you are inside your Department of Revenue tax account in Revenue Online, click on the specific tax account you want to view (EXF for Exempt Fuel Refunds). You will see all of the claims you have already filed
Gasoline and Special Fuel
Any person who acts as a distributor, supplier, importer, exporter, blender, terminal operator or carrier of fuel in Colorado must be licensed as such. A license is required for each of these activities.
Any broker or person who acts as a supplier, manufacturer, and distributor of fuel must be licensed as a distributor. Any vendor of liquefied petroleum fuel or natural gas, other operator or contractor who uses Liquefied Petroleum Gas (LPG) or Compressed Natural Gas (CNG) from a public utility, or a public utility that sells fuel through an alternative fuel vehicle charging or fueling facility must also be licensed as a distributor.
Any person who imports fuel into this state must be licensed as an importer.
Any person who acquires fuel in this state and delivers it to another state must be licensed as an exporter. Furthermore, to obtain an exporter license, one must present a copy of their fuel distributor license(s) for the destination jurisdiction(s).
Any person who blends fuel outside of the fuel distribution system, such as in refineries, must be licensed as a blender.
Any carrier who transports fuel that they do not own must be licensed as a common carrier.
A storage facility or a tank farm where fuel is stored and then removed for distribution must be licensed as a terminal operator.
Current licensed distributors who want to perform any activity other than what they are currently licensed for must submit an amended application to obtain a license for the other activities. For example, if one is currently licensed as a distributor and intends to import fuel into Colorado, an application requesting an importer license will be required before such a distributor imports fuel into Colorado.
Any entity operating without a license is subject to civil penalties in the amount of a $5,000 fine for the first offense; $10,000 for the second offense; and $15,000 for the third or subsequent violation.
A Government entity may sell fuel to another governmental entity that has a fuel tax exemption certificate without having to be a licensed fuel distributor. The fuel sold must be used exclusively by the purchasing governmental entity in performing its governmental functions and activities. The government entity selling the fuel is required to keep a copy of the fuel tax exemption certificate for any entity that it provides fuel. If a governmental entity provides fuel to anyone other than another certificate holding governmental entity, it must obtain a fuel distributor license, collect any tax due and file monthly reports.
To Apply for a Fuel License
Distributor/Contract Carrier Application Booklet (DR 7064)
All information requested on the application must be provided. There is a license fee per application and an additional fee for each location. Review, processing, and issuance of your license can take up to four to six weeks, so you should plan accordingly to have a license when you start your business. NOTE: The
Surety Bond Application Form (DR 7065)
must be included with application for license.
While you are in the application process, sign up for
Electronic Funds Transfer (EFT)
. Payment by EFT is required for fuel taxes. Complete the
Distributor Trading Partner Agreement
to file electronically through the Colorado Fuel Tracking System (COFTS). Additional information concerning the electronic filing using COFTS is available at
or by calling 720-962-4569 (local) or 1-877-352-2586 (toll free).
Changes in Ownership
If the ownership is a change other than stocks of a publicly traded company, a new application must be submitted. If the change in ownership requires a new federal identification number (FEIN), a new application must be filed with the Colorado Department of Revenue. Any person acquiring a ten per cent equity holding in a company or any change in ownership or equity within a twelve month period will require written notification to the Department of Revenue within 30 days. Any person who ceases to be a distributor, supplier, importer, exporter, blender, or carrier must notify the executive director of the Department of Revenue in writing by letter of the discontinuance, sale, or transfer at the time it takes place. All licenses shall be surrendered to the executive director at that time.
License Issued and Requirements
After your application has been reviewed and approved by the department, you will be issued a fuel license(s). A fuel license is location-specific for your operations. Each fuel license must be posted at the location of the business to which it applies.
Fuel licenses are valid until surrendered, suspended, or revoked.
Liquefied Petroleum Gas (LPG) and Natural Gas (NG)
Gasoline and Special Fuel
> To Apply for a Fuel License
Liquefied Petroleum Gas Inspection Fee
Gasoline and Special Fuel
To Apply for a Fuel License
Gasoline and Special Fue
Passenger Mile Tax
Passenger mile tax applies to vehicles designed to carry 15 or more passengers, but the tax computation is based on the actual number of passengers carried at a given time. In other words, for a bus with a seating capacity of 15 passengers, which on a given trip carried only five passengers, the passenger mile tax would be computed based on the five passengers.
In cases where both International Fuel Tax Agreement (ITFA) and passenger mile tax apply, both returns must be filed.
When Passenger Mile Tax Does Not Apply
Passenger service rendered within the boundaries of a city, city and county, or incorporated town by a company engaged in the mass transportation of persons by buses or trolley coaches.
Vehicles registered and used as recreational vehicles.
When DOES Passenger Mile Tax Apply
Passenger Mile Tax applies to miles driven in unincorporated areas, as well as to miles driven on federal and state highways.
If a bus first travels within a city then drives on a federal highway, then exits the federal highway to drive in a city again, passenger mile tax is due on the miles driven on the federal highway.
A similar result occurs if a bus travels from one city to another, passing through an unincorporated area.
Vehicles Registered in Another State
A vehicle carrying passengers that is registered in another state, and makes an occasional trip into Colorado, is allowed to pay the tax on a trip-by-trip basis. The fee shall be $25, or the actual tax, whichever is greater. The formula used to calculate the tax is $0.001 multiplied by number of passengers multiplied by number of Colorado miles.
Get a Passenger Mile Tax Account
Application for Passenger Mile Tax Account (DR 0278)
One license is issued to each account. Operators are required to make copies of the license for each qualified vehicle. Any vehicle subject to passenger mile tax must have a valid license in the vehicle at all times. Failure to display a copy of the license will result in the operator being required to purchase a trip permit.
The license is issued for a calendar year. It will be renewed automatically, if the account is in good standing.
A bond will not be required, except in such cases that a licensee fails to file timely reports, fails to remit taxes as due, or when an examination of the account otherwise indicates that a financial guarantee is necessary.
If required, the bond will be twice the estimated average net tax liability for a reporting period. The amount of the bond, if needed, will be determined by the Department of Revenue.
Buses with a seating capacity of fourteen or fewer passengers do not have to stop and clear
Colorado Ports of Entry
Commercially licensed buses with a passenger capacity of greater than fourteen are also not required to stop and clear a Colorado Port of Entry, if they are legally licensed and registered to operate in Colorado.