Information Release

XT 2003-08 - Excise and Motor Fuel Tax Division Information Release - Motor Fuel Tax Refund for School Districts or Educational Service Centers - July 7, 2003

The 125th Ohio General Assembly recently enacted Amended Substitute House Bill 87 that provided for an increase in the state motor fuel tax. Effective July 1, 2003, the tax increased from 22 cents per gallon to 24 cents per gallon and will increase to 26 cents per gallon on July 1, 2004. The bill also provided for a refund of only the new tax to public schools. The refund provision was changed in Amended Substitute House Bill 95 to include joint vocational schools and educational service centers (ESC) in addition to city, exempted, and local school districts. The refund of the new tax applies to all fuel purchased on or after July 1, 2003, that is not resold and is used for school or ESC purposes.

FREQUENTLY ASKED QUESTIONS

How much of the tax is refundable?

Starting July 1, 2005, 6 cents is refundable. 

What uses of fuel qualify for a refund?

All public school (including JVS) or ESC operations will qualify for a refund (e.g., transportation of students, operation of service vehicles, lawn mowers).

What if the fuel is used by a company under contract to transport pupils?

The fuel purchased by the transportation company does not qualify for refund. Fuel purchased by the school district and provided (not sold) to a transportation company for school or ESC operations qualifies for refund. Fuel used by the transportation company for other purposes does not qualify for refund.

What fuel does not qualify?

Fuel that is sold to others even if it is sold to a transportation company under contract to transport pupils.

What if the school district transports pupils to private schools or alternative schools?

The fuel qualifies for a refund.

What types of fuel qualify for refund?

All fuels subject to the motor fuel tax such as gasoline, diesel, propane, and LPG. Compressed natural gas is not taxable and therefore does not qualify for a refund.

How often may refunds be filed?

Refunds may be filed for any length of time as long as the refund is for at least 100 gallons and is within 365 days from when the fuel was purchased. We recommend either monthly, quarterly, or semiannually.

How long will it take to get the refund?

Refunds are generally paid within four to six weeks.

What type of information must be included with the refund claim?

You must include copies of the purchase invoices in order to receive your refund. If you submit original invoices, they will not be returned.

Enclosed is an application for a motor fuel refund permit number (MVF-31) and a sample refund claim (MVF-81). Please complete the MVF-31 application, and submit it to the address shown below. Upon receipt of the completed application, your school district will be issued a refund permit number, and you will be sent your first refund claim,.

Please direct any questions to:

Ohio Department of Taxation
Motor Fuel Refund Unit
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone: (855) 466-3921
Fax: (206) 350-6722
Web site: http://tax.ohio.gov/