As a son to an owner of a family gas station business, I have heard every remark in the book of complaints for gas prices being too high. Next time you are looking to yell or criticize your gas station owner or distributor, remember the impact of taxes that contribute to overly increased gas prices. Below are some changes Florida made in the past year regarding gas prices.
On November 12, 2012, the Florida Department of Revenue issued Tax Information Publication (“TIP”) No 12B05-01. The full TIP can be found here. In summary, the TIP adjusted motor fuel tax rates in Florida based on the National Consumer Price Index (“CPI”).
Specifically, motor fuel tax increased from 16.6 cents per gallon to 16.9 cents per gallon at the state level. In diesel fuel tax increased from 16.6 cents per gallon to 16.9 cents per gallon as well. In addition, the county tax increased from 13.9 cents per gallon to 14.1 cents. In total, diesel fuel tax went from 30.5 cents per gallon to 31 cents.
Florida taxes also increased taxes levied on terminal suppliers and wholesalers to kick off 2013. In addition to the 16.9 cent state tax on fuel which is collected at the rack, terminal suppliers must also collect a minimum fuel option tax in the amount of 10.9 cents per gallon on each gallon of fuel sold to wholesalers. Therefore, a total tax collected by terminal suppliers on motor fuel sold to licensed wholesalers is up to 27.8 cents per gallon.
Once the wholesaler purchases the fuel, the tax does not stop there. The wholesale must remit to the Florida Department of Revenue the local option rate above the minimum on motor fuel sold to retail dealer s or end users.
The various Exhibits can be found here.
About the author: Mr. Donnini is a multi-state sales and use tax attorney and an associate in the law firm Moffa, Gainor, & Sutton, PA, based in Fort Lauderdale, Florida. Mr. Donnini’s primary practice is multi-state sales and use tax as well as state corporate income tax controversy. Mr. Donnini also practices in the areas of federal tax controversy, federal estate planning, Florida probate, and all other state taxes including communication service tax, cigarette & tobacco tax, motor fuel tax, and Native American taxation. Mr. Donnini is currently pursuing his LL.M. in Taxation at NYU. If you have any questions please do not hesitate to contact him via email or phone listed on this page.