The federal government and most states impose taxes on motor fuels.
The federal government refers to these taxes as excise taxes on taxable fuels which include gasoline, diesel fuel and kerosene.The Internal Revenue Code (IRC) has provisions requiring registration, reporting, collection and remission of these taxes.The IRC also provides for fines and penalties for failure to comply with federal statutes.For an overview on federal excise taxes on taxable fuels please click here.
Most state governments impose taxes on motor fuel.These taxes are generally imposed on gasoline and diesel fuel.States often require licensing of the businesses involved in the transportation and sale of motor fuel.For an overview of state taxes on motor fuels please click here.