State gasoline and diesel refund and diesel tax exemption certificate requirements

TO: All Maryland Volunteer Fire and Nonprofit Volunteer Rescue Companies

SUBJECT: State Gasoline and Diesel Refund and Diesel Tax Exemption Certificate Requirements

Volunteer fire and nonprofit volunteer rescue companies are eligible for a refund of gasoline and diesel taxes or a diesel tax exemption certificate for fuel used to operate fire or rescue apparatus or vehicles.

This administrative release is being provided to all Maryland volunteer fire and nonprofit volunteer rescue companies to answer questions about the state refund and exemption certificate requirements.

What requirements must volunteer fire or nonprofit volunteer rescue companies meet to be eligible for a refund of gasoline and diesel taxes or a diesel tax exemption certificate? A volunteer fire or nonprofit volunteer rescue company must:

1. File articles of incorporation with the Maryland Department of Assessments and Taxation as a volunteer organization;
2. Have a federal identification number assigned to the legal corporate name; and
3. Include volunteer personnel in the operation of fire or rescue apparatus or vehicles.

Are all fire and rescue companies entitled to a refund of gasoline and diesel taxes or a diesel tax exemption certificate?

No. If the fire or rescue apparatus or vehicles are operated exclusively by paid personnel, no refund or exemption is authorized.

How can qualified volunteer fire and nonprofit volunteer rescue companies buy diesel fuel without paying the state motor fuel tax?

If the company buys diesel fuel in bulk from a fuel supplier, or if the diesel fuel is acquired directly from a county or municipal fuel facility that has tax-free diesel available, the fire or rescue company needs a state-issued tax exemption certificate to obtain tax-free diesel fuel. Qualified organizations may also apply for a refund of any diesel taxes paid.

May qualified volunteer fire and nonprofit volunteer rescue companies buy gasoline without paying the state motor fuel tax?

No. Gasoline can only be acquired tax paid. Qualified organizations may apply for a refund of the gasoline taxes paid.

Can motor fuel be purchased from any retail service station without paying the state motor fuel tax?

No. If gasoline or diesel fuel is acquired directly from a retail service station, the state motor fuel tax is automatically paid. Qualified entities may apply for a refund.

How can a company get a diesel tax exemption certificate?

Anyone eligible for a diesel tax exemption certificate must complete the Special Fuel Tax Exemption Certificate Application (COT/MFT-047), submit the form to the Motor Fuel Tax Bureau, and renew the certificate by May 10th of each year. Failure to renew may result in the cancellation of the exemption certificate, and subsequent purchases become tax paid. You may obtain additional information on eligibility and exemption certificates by contacting the Licensing and Registration section at (410) 260-7215.

How is a refund of the state gasoline and diesel tax obtained?

You may contact the Taxpayer Accounting/Refund Unit at (410) 260-7921 for further information and a refund packet.