MT Motor Fuel Tax Refund Changes Effective January 1, 2018
The 2017 Montana legislature passed House Bill 466 which
makes DIESEL purchased at the pump (within 50 miles of applicant’s
agricultural operation) with a credit or debit card, eligible for a partial refund of the Montana tax to
persons qualified for the refund based on agricultural use. Because the refund application requires you
to submit the original of the purchase, you will need to keep the receipt you
print out from the pump. Keeping the
receipt will be a bit of a hassle, but will make a big difference on your
refund.
MCA 15-70-430 allows an estimated (standard deduction)
amount of fuel eligible for refund based on applicant’s agricultural income.
The department may request state or federal income tax information from the
applicant or the department of revenue to determine eligibility. To qualify, at
least 30% of an applicant’s gross earned income must be from operations
directly associated with farming and/or ranching.
**Effective January 1, 2018, credit or debit card purchases
for diesel fuel are eligible for refund under the estimate allowed for
agricultural use. Only credit or debit card purchases made within 50 miles of
the applicant’s agricultural operation are eligible and receipts identifying
the purchase as a credit or debit card transaction must be submitted with the
application to support the claim.
MCA 15-70-432 requires that all applications for
refunds be filed within 36 months of the date of purchase of the tax paid fuel.
MCA 15-70-434 allows the department 120 working days
after receiving a refund claim to approve or reject it.
Agricultural use means use of gasoline and/or clear diesel, by a person who earns income while engaging in the business of farming or ranching and who files farm or income reports for tax purposes as required by the United States internal revenue service.
Gross Earned Agricultural or farm income means all taxable income and wages, before expenses, a person or business receives from: cultivating, operating, or managing a farm for gain or profit, either as owner or tenant; operating a livestock, dairy, poultry, fish, fur-bearing animals, or horticultural commodities business; operating a feed yard for the fattening of cattle; operating a fruit or truck farm; operating an agricultural commodities business; operating a plantation, ranch, range, nursery or orchard; and sale of crop shares if the person materially participates in producing the crop.
"Gross earned Non-AG income" means all taxable income and wages, before expenses, a person or business earns from non-agricultural activity such as: Custom hire, fuel tax refunds, real estate rental, pasture/farm rental (unless you materially participate, and file taxes that confirm your material participation) and equipment rental.
To support your claim for refund, you must submit your
original bulk delivery invoices, original or copies of your cardtrol
statements, and/or original or copies of your credit and debit card receipts
(diesel only) issued at the time of each purchase.
All information listed below is required on an invoice or
receipt to be eligible for a motor fuel tax refund and must be filled out at
the time of purchase and delivery. If any information is missing, the applicant
may provide a copy of the corresponding billing statement with the original
invoice/receipt that supports the missing information. No altered or corrected invoice/receipt will be accepted for refund
purposes. Invoices/receipts altered in any way must be voided and a new
invoice/receipt issued by the dealer. The
name on the invoices/receipts must exactly match the name on the application.
If there is any variance, the applicant must list alternate names and/or DBA
information box on front page of refund form or the invoice/receipt will not be
accepted. Each invoice, receipt,
cardtrol statement and accompanying billing statement collectively must contain
or show the following:
a) name and address of seller;
b) name or account number of purchaser;
c) complete date of delivery or purchase;
d) type of fuel;
e) number of gallons purchased;
f) price per gallon or total amount of sale;
g) Any person who requests a refund or credit of motor fuel tax must have satisfactory evidence that the Montana motor fuel tax was included in the total price paid. Examples: “All taxes included in the price or a breakdown of taxes charged”, etc.
For additional information, contact the Montana Department
of Transportation http://www.mdt.mt.gov/ Operator: 406-444-6200
