Effective July 1, 2023, per gallon motor fuel tax rates for Kentucky are as follows:
- Gasoline - 28.7 cents
- Liquefied Petroleum - 28.7 cents
- Special Fuels - 25.7 cents
- Petroleum Environmental Assurance Fee - 1.4 cents.
Motor Fuels Taxes consist of taxes on gasoline, liquefied petroleum, and special fuels (all combustible gases and liquids capable of being used in motor vehicles, except gasoline and liquefied petroleum).
Gasoline tax is levied on the average wholesale price per gallon as determined by KRS 138.228. The tax becomes a liability of the dealer when the gasoline is received or enters the dealer's storage facility.
Liquefied petroleum gas consists of any material which is composed predominately of any of the following hydrocarbons, or mixtures of them, whether in liquid or gaseous states: propane, propylene, butane (normal and isobutane), and butylene, and which is used to propel vehicles of any kind on public highways. The tax is levied when it is determined to have been used to propel motor vehicles on public highways.
Special fuels tax including diesel fuel is levied on the dealer at the point of receipt of the fuels instead of the point of sale by the dealer.
Unlike most taxes collected by DOR, motor fuels taxes are deposited in the Road Fund as directed by the Kentucky Constitution and are appropriated by the General Assembly for the construction and maintenance of Kentucky's roads.
Motor Fuels tax laws are found in Chapter 138 of the Kentucky Revised Statutes.
Electronic Filing of Motor Fuels Tax Returns
The Kentucky Department of Revenue (DOR) system can be accessed via the Motor Fuel Electronic Tax Filing System.
The system accepts (1) web entry and (2) ANSI X12-813 data map version 4030 file format for electronic filing of your Gasoline, Special Fuels, Liquefied Petroleum, Transporter, and Terminal Operator returns and/or reports. DOR has maintained the Federation of Tax Administrators' (FTA) Uniformity standards. However, the new system does not support the ASCII file format. Licensed dealers currently using the ASCII spreadsheet will have to use one of the two methods above to file returns. Information on the file format can be found in the KY 813 EDI Guide v001.
Since we combined the four separate distributor reports into one printable report, dealers can amend returns for gasoline, special fuels, and liquefied petroleum tax on the same report for web created amendments. EDI uploads will create separate filings for gasoline and special fuels. But amendments for both can be submitted in one file. Files uploaded create certified returns which will process overnight if amending prior periods.
DOR will continue to provide updates as development progresses. DOR staff are available to provide further detail as required to assist in this transition. If you have any questions or concerns, please contact us by email at KRC.WEBResponseMotorFuels@ky.gov or by phone at 502-564-3853.