Motor Fuel Tax Information

The Field Enforcement Bureau (FEB) is responsible for monitoring the distribution and use of motor fuels in Maryland. The office registers petroleum transporters, such as tanker trucks, trains, pipelines and waterborne vessels, operating in and through Maryland that transport more than 1,749 gallons of motor fuel. The FEB registers service stations and other facilities that sell or store motor fuels in bulk in order to regulate the quality of motor fuel sold in Maryland. It is also responsible for issuing decals and licenses to Maryland-based motor carriers that participate in the International Fuel Tax Agreement (IFTA), as well as helping to ensure that untaxed home heating oil is not used in highway vehicles as diesel fuel.

Biodiesel, a fuel made fully or partially from vegetable oils or animal fats, is subject to Maryland's motor fuel tax and sales and use tax.

The motor fuel tax applies to biodiesel as a special fuel that is useable as a fuel in an internal combustion engine. Biodiesel is typically produced by combining a vegetable oil or animal fat with an alcohol, in the presence of a chemical catalyst. In Maryland, straight vegetable oil (SVO) would be subject to the same motor fuel requirements as biodiesel when used as a motor fuel.

The state special fuel tax rate is $.2425 per gallon of motor fuel used.

Registration

In general, you must register with the Field Enforcement Bureau if you do any of the following in Maryland:

Manufacture or produce biodiesel, even for your own use.
Sell biodiesel that has not been taxed as diesel fuel.
Use biodiesel that has not been taxed as diesel fuel to power a vehicle driven on roads or highways.
Import biodiesel from another state.

If you make your own biodiesel and use it in a vehicle that will be driven on roads or highways, the tax is due when you put the biodiesel into the vehicle's fuel tank. If you are required to register, you must apply for a motor fuel tax license. You will be issued a Special Fuel User or Seller License. There is no fee for the license.

Bonds

As a user of biodiesel, you are not required to post a bond, unless you use more than 4,000 gallons per year. Sellers of diesel fuel, however, are required to post a bond.

Filing requirements

After we issue your license, you will be required to file motor fuel tax returns. You will receive a motor fuel tax return approximately three weeks before the due date. You must file a return even if you do not have any activity for the reporting period.

Diesel fuel users have the option of filing and paying the motor fuel tax annually or monthly, until the usage rate exceeds 4, 000 gallons per year.

There are no state tax credits available for biodiesel fuel.

Additional information

For more information about biodiesel fuel, contact the following government agencies:

Maryland Department of Environment
1800 Washington Blvd.
Baltimore, MD 21230
Phone: 410-537-3000.

Maryland Department of Agriculture
50 Harry S. Truman Parkway
Annapolis, MD 21401
Phone: 410-841-5700

U.S. Environmental Protection Agency
Ariel Rios Building
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
Phone: 202-272-0167

Internal Revenue Service
500 N. Capitol St. NW
Washington, DC 20221
Phone: Toll-free 1-800-829-4933 (businesses)

Think you purchased bad fuel?

Tell us. Field inspectors for the Comptroller of Maryland are responsible for monitoring the transportation and storage of motor fuel, and verifying that retail locations are complying with regulations governing pricing, labeling and registration. Inspectors collect fuel samples and they are tested at the Motor Fuel Testing Laboratory in Jessup to ensure quality standards including octane levels. Any sub-standard or inaccurately labeled product is removed from the marketplace until the problem is corrected. E-mail feb@marylandtaxes.gov to report fuel price disparities or fuel problems.

Unsure about pump accuracy?

If you feel a particular gas pump may not be giving you all the gas you are paying for, report it to the Maryland Department of Agriculture (MDA). While the Comptroller's Office inspects fuel, the MDA is charged with making sure gas pumps and meters are accurate. If you think the amount of fuel you received falls short of the amount you purchased, contact the MDA's Weights and Measures Division at 410-841-5790.

Need to report a fuel spill?

If you need to report a fuel spill or leak, contact the Maryland Department of the Environment's Oil Control Program at 410-537-3442.

International Fuel Tax Agreement (IFTA)

To simplify the reporting of fuel used by interstate and inter-jurisdictional motor carriers, Maryland participates in the International Fuel Tax Agreement (IFTA). IFTA is an agreement among 48 participating states and 10 Canadian provinces which allows qualified commercial vehicles to travel throughout those jurisdictions and pay the required motor carrier taxes. Vehicles displaying valid licenses and decals issued by a base jurisdiction may travel in any other jurisdiction.

For more information about IFTA qualifications or additional registration requirements under the Maryland Department of Transportation, see the links below or the MDOT Motor Carrier Program.

All Maryland paper returns should be mailed to our address in Maryland:

IFTA Returns Processing
PO Box 2171
Annapolis, MD 21404

The new Maryland IFTA system, known as Maryland Motor Carrier Connect, will use the latest encryption and security technologies to provide for full electronic filing of returns and payments through common web browsers to the State of Maryland. Anyone with Internet access and proper authorization can file an IFTA return electronically through our IFTA system.

There are several benefits to e-filing your IFTA returns:

Saves time. IFTA e-filing is the fastest way to file your return.
Electronic filings are processed immediately, even if you wait until the due date to file.
Does not require special software or hardware.
Electronic filing is FREE!
Saves money, by eliminating postage and other mailing costs.
Reduces errors, by performing necessary computations for you.
Reduces mail delays.
You receive immediate confirmation that we received your IFTA report.
You can print a copy of your electronic IFTA report for your records.

We urge all taxpayers to take advantage of electronic filing as the most convenient way to file your IFTA quarterly tax returns. If you have questions related to IFTA returns please email IFTA_Carriers@marylandtaxes.gov.

On-Line registration:

Go to the Sign-On page
Click on third link on left: Click here to request internet access to your account or agency
To sign up as an Online user you will need: Account number, Taxpayer ID number, Physical address Zip code and a valid email address.
Follow the online instructions to obtain a User Name and Password for Online Access.
When your access has been approved, you will receive an email notification with a temporary password.

The Comptroller of Maryland will attempt to automatically renew your IFTA license and issue decals.

If you have delinquent IFTA returns or any Maryland State agency liabilities, you will not be eligible for automatic renewal. These liabilities must first be resolved, and then an online or paper IFTA application must be submitted and approved before we will issue your IFTA license and decals.
Other possible situations associated with your current IFTA license may cause your IFTA license to not automatically renew, including being licensed under a USDOT that is registered to another company, or if your current IFTA returns indicate that you do not travel outside of Maryland. These situations will require you to submit an online or paper application for approval before we will issue your IFTA license and decals.
If you do not travel outside of the State of Maryland, you do not need to register for IFTA.

If you receive a renewal form in the mail, your account was not included in the automatic renewal and you are required to complete a renewal application to receive your IFTA license and decals. The deadline for IFTA license renewals is December 31.

The most efficient way to obtain your IFTA license and decals is to renew online. Online renewal will be available as of December 1. If you are currently registered to file online returns, you do not have to re-register to renew online. If you choose not to take advantage of the online renewal option, you can renew by using the paper renewal form. When your renewal has been received and approved, we will send your IFTA license and decals to you through the mail. It is your responsibility to renew your IFTA license and decals before they expire.

If you are aware of any problems that may prevent your renewal, we strongly suggest you resolve them now. If your IFTA license is not renewed and decals are not assigned to you by December 31, you cannot legally operate in any other jurisdiction without a valid trip permit.

If you have any questions related to IFTA registration, please call 410-260-7215 or email IFTALICENSING@marylandtaxes.gov.

Download a print-friendly version of the IFTA Compliance Manual. You must have version 6.0 or higher of the Adobe Acrobat Reader program to view and print the IFTA Compliance Manual. Adobe Reader is available for free online. Due to the relatively large file size and varying downloading speeds among computers, the manual may take a couple of minutes to fully download. Please be patient.

Chapter 1: Introduction

Chapter 2: Definitions

Chapter 3: IFTA Credentials