Information Release

XT 2005-08 - Excise And Motor Fuel Tax Division Information Release – Motor Fuel Shrinkage Allowance Reduction For Ohio Motor Fuel Dealers - June 28, 2005

The 126th Ohio General Assembly recently enacted Amended Substitute House Bill 66 that provides for changes in the state motor vehicle fuel excise tax.   

Effective July 1, 2005, the licensed dealer shrinkage allowance provided for in R.C. 5735.06 will  be reduced  to  2.5 percent,  and   the   retail  shrinkage  allowance   will  be reduced  to 0.83 percent.

Effective July 1, 2006, the licensed dealer shrinkage allowance provided for in R.C. 5735.06  will  be reduced  to 1.95  percent,   and  the   retail   shrinkage   allowance will be reduced to 0.65 percent.

Effective July 1, 2005

Effective July 1, 2006


Licensed Dealer Shrinkage Allowance

2.50% (.0250)

1.95% (.0195)

Retail Dealer Shrinkage Allowance

0.83% (.0083)

0.65% (.0065)


The tax return for June, 2005, which is due August 1, 2005, should be filed with the previous shrinkage rates.   The first tax return subject to these new rates will be for the month of July 2005, which is due August 31, 2005. 

Enclosed is an updated Licensed Dealer’s Monthly Ohio Motor Fuel Tax Report (MF-2).  You may copy this form as necessary and begin using this new form immediately.  Please destroy the form that was mailed in a previous release.

If you have any questions, please contact the Ohio Motor Fuel Tax Unit at (614) 466-3503.


Ohio Department of Taxation

Motor Fuel Tax Section

P.O. Box 530

Columbus, Ohio 43216-0530

Telephone:  (855) 466-3921

Fax:  (206) 350-6722

Web site: