Information Release

XT 2001-03  - Motor Fuel Imported into Ohio from Michigan - March 15, 2001

Michigan recently passed legislation that involves motor fuel pulled from a terminal rack in Michigan. The legislation becomes effective April 1, 2001, and requires that the Michigan terminal operator charge and collect either the Michigan motor fuel tax (if the fuel is staying in Michigan) or the destination state’s motor fuel tax (Ohio’s tax if the fuel is destined for Ohio). This legislation is in direct conflict with Ohio’s motor fuel law which specifies that the Ohio licensed motor fuel dealer is the taxpayer and subject to Ohio’s motor fuel tax on all motor fuel imported into this state by the Ohio licensed dealer.

We have advised the Michigan Department of Treasury that the Ohio licensed motor fuel dealer, and not the Michigan terminal operator, is responsible for reporting and paying Ohio’s motor fuel tax. While we cannot control what Michigan does, it is possible that if you pull fuel from a terminal in Michigan, you will be charged either the Michigan or Ohio motor fuel tax. You are still responsible for reporting and paying the Ohio motor fuel tax on your Ohio monthly motor fuel tax return. Such purchases may not be reported as tax-paid purchases. We suggest you contact the Michigan Department of Treasury to determine whether a refund of the tax paid to the Michigan terminal operator will be available once the fuel is imported into Ohio. Please contact us at (614) 466-3503 if you have any questions.