XT 2007-03 - Excise and Motor Fuel Tax Division Information
Release – Motor Fuel Shrinkage Allowances - June 29, 2007
The 127th Ohio General Assembly recently enacted Amended
Substitute House Bill 119 (H.B. 119) that provides for
changes in the discounts and allowances for timely payment of
state motor vehicle fuel excise taxes.
Effective July 1, 2007, and continuing through June 30, 2009,
the licensed dealer shrinkage
allowance will be 1.00% and the retail shrinkage
allowance will be 0.50%.
Additionally, H.B. 119 enacts a tax collection and
administration discount of 0.90% on motor fuel received on
which the taxes are paid provided the monthly report is
timely filed and the tax is timely paid.
July 1, 2007
Licensed Dealer Shrinkage Allowance
Licensed Dealer Collection & Administration
Total Allowance and Discount
Retail Dealer Shrinkage Allowance
The tax return for June 2007, which is due July 31, 2007,
should be filed using the previous shrinkage rates. The first
tax return subject to the new discount and allowance rates
will be for the month of July 2007, which is due August 31,
Enclosed is the updated Licensed Dealer’s Monthly Ohio Motor
Fuel Tax Report. You may copy this form as necessary and
begin using this new form immediately. The updated MF-2 will
also be available under "Tax Forms" at tax.ohio.gov.
Ohio Department of Taxation
Motor Fuel Tax Unit
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone: (614) 466-3503
Fax: (614) 752-8644