Tuesday, June 10, 2008

Claim your Boat Gasoline Tax Refund

I know, it sounds too good to be true - but it's for real, and I got my refund!

It's a refund of part of the "highway use tax" that the state imposes on fuels. Many states apply the tax on marine fuel toward boating programs through the Aquatic Resources Trust Fund. But in other states, the money does not get funneled into the marine community, and is instead put into the highway improvement fund. Since boats don't cause wear and tear on the highways that benefit from this fund, applying marine fuel tax toward highway improvement is unfair. To deal with this problem, several states have instituted procedures to refund at least part of that tax to recreational boaters who take the time to fill out required paperwork and keep receipts.

For boaters in Texas, here's what you do---
Keep your original boat gasoline receipts - receipts must show the name of the seller and purchaser, date of purchase, type of fuel, number of gallons and amount of fuel tax paid. I never really checked my receipts that closely, but hopefully they have all the required info. I usually gas up at Emerald Point Marina. (You do not need to mail receipts with the form, but are supposed to keep them for 4 years in case you're asked to produce them at a later date.)

You can pretty much ignore all of the other instructions you'll find on the Texas state government website as it all applies to business use and distribution of fuels, not personal boating use.

Print off a Texas Claim for Refund of Gasoline or Diesel Fuel Taxes (form 06-106).
Besides filling in your contact info, the only part of the form that applies to you is item #6- enter the total number of gallons purchased, and then enter that number again in the total (item #13). I know it'll feel like this isn't the right form for you to use for recreational gasoline use in a boat, but it is.

The form must be postmarked on or before one year from the first day of the calendar month following the purchase of the gasoline. Send the completed form to:
Texas Comptroller of Public Accounts, Revenue Accounting Division, 111 E. 17th Street, Austin, Texas 78774-0100.

The refund is 20 cents per gallon (before factoring in a 2% distributor's tax and $1.50 filing fee). Maybe doesn't sound like a lot at first glance, but for me, it's about a $50 refund each time I fill the tanks!

You can thank me later- toss me a beer when you see me on the lake!

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