Nebraska Fuel Tax: Rates, Refunds, and Filing Requirements
Understand the complete framework of Nebraska's fuel tax, from supplier responsibilities to the specific conditions for obtaining a refund on tax-paid fuel.
Nebraska’s fuel tax is a per-gallon excise tax on motor fuels that serves as a primary funding source for the state’s transportation and road infrastructure projects. The revenue supports the maintenance, repair, and construction of public highways and bridges. The tax rate is subject to periodic adjustments by the Nebraska Department of Revenue.
For the period of January 1, 2025, through June 30, 2025, the tax rate for gasoline, gasohol, and diesel fuel is 30.4 cents per gallon. This rate is a composite of a fixed rate set by statute, a wholesale rate, and a variable rate. This state tax is separate from any applicable federal fuel taxes and a distinct Petroleum Release Remedial Action Fee, which is an additional charge of 0.9 cents per gallon on gasoline and 0.3 cents per gallon on diesel.
Applicability of the Fuel Tax
The Nebraska fuel tax is levied on the suppliers, distributors, importers, and wholesalers who are the first to handle fuel within the state. These licensed entities remit the tax to the Nebraska Department of Revenue. This structure means the tax is embedded in the fuel’s price as it moves through the supply chain and is ultimately paid by the consumer at the retail pump.
While the tax applies to fuel used for operating motor vehicles on public highways, several users are granted exemptions. A primary exemption covers fuel used for agricultural purposes, such as powering tractors and combines. Fuel purchased by the United States government or its agencies is also exempt from the state tax.
An exemption also applies to state and local governmental entities, including school districts, but it is limited to fuel used in their unlicensed, non-highway equipment. Fuel used in their licensed motor vehicles is taxed and does not qualify for a refund. For most non-highway uses, the consumer purchases the fuel with the tax included and then files a claim for a refund.
Other non-highway exemptions include undyed diesel fuel used in stationary engines and construction equipment. Fuel used in refrigeration “reefer” units on transport trucks also qualifies for an exemption since it powers a separate motor and is not used for propelling the vehicle.
Required Licensing and Documentation
Before a business can operate as a motor fuels supplier, distributor, importer, or wholesaler in Nebraska, it must obtain a license from the Department of Revenue. The application process involves submitting the Nebraska Motor Fuels License Application, Form 20MF. This application requires business details, including its legal name, federal employer identification number (EIN), physical address, and a list of all owners or partners.
Most license types mandate that the applicant secure a surety bond. This bond, documented on the Nebraska Motor Fuels Tax Bond, Form 70, serves as financial security to ensure the payment of owed fuel taxes. The license application also requires businesses to specify their level of operation and the types of fuel they will handle.
For individuals and businesses seeking a refund for tax-paid fuel used for an exempt purpose, specific documentation is required. The primary forms are the Nebraska Claim for Refund of Nebraska Motor Fuels Tax for agricultural use (Form 84AG) and for other non-highway uses (Form 84).
To substantiate a claim, filers must provide copies of purchase invoices that clearly show the number of gallons purchased and the tax paid. For users who fuel both licensed vehicles and unlicensed equipment from the same bulk storage tank, detailed withdrawal logs documenting the date, gallons, and specific equipment fueled are required.
Procedures for Filing Returns and Claiming Refunds
Licensed suppliers, distributors, wholesalers, and importers are required to file the Nebraska Monthly Fuels Tax Return, Form 73. These returns must be filed electronically, as the Department of Revenue does not provide paper forms for this purpose. The deadline for filing Form 73 is the 20th day of the month following the end of the reporting period.
Tax payments associated with the Form 73 return are also due by the 20th of the month. Businesses may be required to make payments via Electronic Funds Transfer (EFT), particularly if their annual tax liability exceeds certain thresholds. To set this up, a business must file an Authorization Agreement for Electronic Funds Transfer of Tax Payments, Form 27EFT.
The procedure for claiming a refund is distinct from the tax return filing process. Claimants must mail the completed Form 84 or Form 84AG, bearing an original signature, to the Nebraska Department of Revenue’s dedicated post office box for refunds. While the form itself must be mailed, supporting documentation like invoices and withdrawal logs can be emailed to a specific address provided by the department.
A claim for refund must be filed within three years from the date the tax was paid, and the total refund amount claimed in a calendar year must be at least $25 for each fuel type. After submission, the department reviews the claim and supporting documents, a process that can take several weeks before a refund is issued.