Information Release

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.


Effective July 1, 2007


Licensed Dealer Shrinkage Allowance

Licensed Dealer Collection & Administration Discount

Total Allowance and Discount

          1.00% (.010)

          0.90% (.009)

          1.90% (.019)


Retail Dealer Shrinkage Allowance


           0.50% (.005)

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, 2007.

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

Ohio Department of Taxation

Motor Fuel Tax Unit

P.O. Box 530

Columbus, Ohio  43216-0530

Telephone:  (855) 466-3921

Fax:  (206) 350-6722