The following is intended to provide general information concerning frequently asked questions about taxes administered by the Mississippi Department of Revenue. It is an informal interpretation of the tax law and is not intended to serve as a rule, regulation, declaratory opinion, or letter ruling. Legislation, regulations, court decisions, notices and announcements could affect the accuracy of this information. Please refer to the Mississippi Code Annotated and the Mississippi Administrative Code for the most current version of the law and administrative procedures.
- What is the Mississippi tax rate on gasoline?
Mississippi’s tax rate is 18 cents a gallon for all motor fuel, including gasoline, plus .4 for environmental protection for an overall rate of 18.4 cents per gallon.
- Does Mississippi impose any environmental fees on petroleum products?
Yes. An Environmental Protection Fee of four tenths (4/10th) of one cent per gallon is imposed on gasoline, aviation gasoline, diesel fuel, jet fuel and fuel oil.
- What is the tax rate on Diesel Fuel?
Un-dyed diesel is taxable at a rate of eighteen (18) cents per gallon. Dyed diesel is taxable at a rate of five and three fourths (5 3/4th) cents per gallon.
- What is Dyed Diesel?
Dyed diesel is diesel fuel that is dyed in accordance with U. S. Environmental Protection Agency or Internal Revenue Service rules.
- What are the consequences for using dyed special fuel in a propulsion tank on the public roads?
Persons using dyed diesel in a motor vehicle are subject to a penalty of one thousand dollars ($1,000.00) and may be assessed the applicable tax.
- How do I apply for a refund on 'off-road diesel fuel' or 'reefer fuel'?
The Mississippi Petroleum Tax Laws do not provide for refunds or credits of taxes paid on highway use diesel fuel that is subsequently converted to non-highway use.
- Does Mississippi have municipal or county taxes on petroleum products?
Yes, on gasoline only. Hancock County, Harrison County and Jackson County levies 3 cents per gallon tax which is known as the "Seawall Tax" on the gasoline sold in those counties.
- Is gasoline subject to sales tax?
No, motor fuels are exempt from sales tax in Mississippi.
- What is the applicable tax on diesel fuel used by a contractor performing a contract with a State or local government agency, institution, or department?
All diesel fuel used in performing a contract for construction, reconstruction, maintenance or repairs with the State of Mississippi, any county, municipality or agency, department or political subdivision is taxable at the rate of eighteen (18) cents per gallon.
- Are bio fuels taxable?
Any person producing, using, storing or selling bio-diesel or bio-fuel in Mississippi is subject to the provisions of the Mississippi Special Fuel Tax law and is required to obtain a Special Fuel Distributors Permit, file monthly Special Fuel Tax and Environmental Protection Fee returns and pay the applicable taxes due. This applies to persons producing bio-diesel or bio-fuel for their own use.
- What’s the tax rate on biodiesel?
The tax rate on biodiesel is the same as petroleum diesel (18 cents per gallon) for biodiesel that does not meet the dyeing requirements prescribed by United States Environmental Protection Agency or Internal Revenue Service Regulations. The rate is 5.75 cents per gallon on biodiesel that is dyed in accordance with United States Environmental Protection Agency or Internal Revenue Service Regulations.
- Are there any Biodiesel Fuel Tax incentives?
- Is ethanol taxable? What is the tax rate?
Yes, the Mississippi levies a tax of 18 cents per gallon on all gasoline and “blend stock” stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution or for any purpose.
- What is Gasohol? What is the tax rate?
Gasohol is a gasoline fuel that is blended with denatured ethanol. Typically gasohol is a blend of 10% denatured ethanol and 90% gasoline, but the blended amounts may differ. The tax rate is eighteen (18) cents per gallon.
- Who collects and pays the Mississippi fuel tax?
Mississippi’s fuel taxes are excise taxed levied upon a licensed distributor or anyone acting as such for the privilege of engaging in business as a distributor. All licensed distributors are required to file monthly tax returns and pay any taxes due.
- Where does the petroleum, motor fuels go?
Petroleum taxes are primarily for the support of Mississippi highway programs.
- What are the consequences of importing fuel into Mississippi without a license?
Failure to obtain a Mississippi Gasoline/Special Fuel Distributor License as required, subjects the distributor to seizure, confiscation, and possible forfeiture of the fuel.
- What is fuel tax evasion?
Fuel tax evasion is the willful intent to evade or defeat the taxes imposed on petroleum products by the State of Mississippi.
- Is K-1 kerosene subject to the Mississippi fuel tax?
It is taxable at a rate of five and three fourths (5 3/4th ) cents per gallon unless sold or used as a fuel in a motor vehicle. Un-dyed kerosene used as fuel in a motor vehicle is taxable at a rate of eighteen (18) cents per gallon.
- Is racing gasoline a taxable motor fuel?
Mississippi’s Petroleum Tax laws define racing gasoline as gasoline manufactured exclusively for use in racing and gasoline containing lead or having an octane of 105 or higher that is not suitable for use on the highways. It is not taxable under Mississippi’s Petroleum Tax laws.
- Is Jet fuel subject to the state excise tax?
Jet fuel is subject to an excise tax on five and one fourth (5 1/4th) cents per gallon under the provisions of the Mississippi Special Fuel Tax Law.
- Do I need to obtain Petroleum Products Distributors permits in Mississippi?
Yes, if you
• intend to receive, import, purchase, sell, blend, refine or distribute gasoline, diesel fuel, kerosene, fuel oil, jet fuel, compressed gas or lubricating oil in this State
• will be acquiring gasoline, diesel fuel, kerosene, fuel oil, jet fuel, compressed gas or lubricating oil in this State and using your own transport truck(s) to export it to another state. If you operate, in this State, a marine terminal or pipeline terminal where gasoline, diesel fuel, kerosene, fuel oil, or jet fuel are stored
• operate in this State an underground storage facility for compressed gas.
• produce bio-diesel (B-100) in this state or blend B-100 with petroleum diesel fuel.
No, if your sole activity in this State is the trading or exchange of product that is in transit through the interstate common carrier pipeline system. This includes products that are in temporarily stored at the Collins, Mississippi breakout storage facility.
- How do you apply for permits?
Go to TAP to apply online.