Montana Department of Transportation

FUEL TAXES
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Allocation to Cities & Counties
Distributor/Carrier/Retailer Reporting
Dyed Fuel Use
FAQs
IFTA Tax Return E-File Quick Start
Laws/Regulations

HELPFUL INFORMATION
Forms
IFTA website
Manuals

REPORT VIOLATORS
To report suspected violators call
MDT’s 24-hour toll free tip line at:
1-888-FUEL-LAW
or email

Tax Legislation

Montana Codes Annotated

Chapter 15 - Taxation

Chapter 18 - State-Tribal Cooperative Agreements

Administrative Rules of Montana

Title 18 - Department of Transportation

Chapter 9 - Motor Fuels -- Gasoline Tax

Chapter 10 - Motor Fuels -- Other Fuels

Chapter 11 - Motor Fuels -- Seizure

Legislation changes for 2007 will be added once the session, which is currently in progress, ends.

2005 Legislative Changes

Gasohol
SB 293: Reduces the tax on Gasohol to 85% of the current tax rate. The Gasohol tax rate is currently .2295 per gallon. The overpaid tax will be refunded to distributors after tax reports have been submitted and we verify the fuel came from a terminal that mechanically blends the ethanol with gasoline.

The reduced tax will be for all gasohol with a blend of ethanol that is 10% or greater.

Currently, Missoula and Laurel are the only terminals that qualify for the reduced tax rate.

This reduced tax rate became effective on April 28, 2005.

Biodiesel
HB 756: Provides a 10 cents per gallon incentive on each gallon increase of Biodiesel production over the previous year. The tax incentive may be claimed for 1) the first year’s total production, 2) the production in the second year that exceeds the production in the first year, and 3) the production in the third year that exceeds production in the second year.

This bill became effective July 1, 2005

HB 776: Provides for refunds of 2 cents per gallon to licensed distributors and 1 cent per gallon to retailers who sell Biodiesel that is produced entirely from bio-diesel ingredients produced in Montana. The refunds must be applied for within 30 days after the quarter ends.

This bill became effective July 1, 2005