Colorado: Fuel Excise Taxes
Colorado Cigarette and Fuel Excise Taxes
In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Colorado and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Colorado Gasoline Tax
| Excise: | $0.22 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.22 / gallon |
Colorado Diesel Tax
| Excise: | $0.21 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.21 / gallon |
Colorado Gasohol Tax
| Excise: | $0.20 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.20 / gallon |
Other Colorado Fuel Excise Tax Rates
The primary excise taxes on fuel in Colorado are on gasoline, though most states also tax other types of fuel.
Colorado Aviation Fuel Tax
In Colorado, Aviation Fuel is subject to a state excise tax of $.06/gallon
Point of Taxation: within three transactions between licensed distributors after the aviation fuel has left the terminal.
Colorado CNG Tax
In Colorado, CNG is subject to a state excise tax of $ .06/gallon equivalent
Point of Taxation: within three transactions between licensed distributors after the diesel/special fuel has left the terminal. Effective January 1, 2016, LPG will be taxable when put in a fuel tank, unless the use is exempt, and when used from a cargo tank to propel a cargo tank motor vehicle.
Colorado Jet Fuel Tax
In Colorado, Jet Fuel is subject to a state excise tax of $.04/gallon
Point of Taxation: within three transactions between licensed distributors after the jet fuel has left the Terminal.
Colorado LNG Tax
In Colorado, LNG is subject to a state excise tax of $ .05/gallon
Point of Taxation: within three transactions between licensed distributors after the diesel/special fuel has left the terminal. Effective January 1, 2016, LPG will be taxable when put in a fuel tank, unless the use is exempt, and when used from a cargo tank to propel a cargo tank motor vehicle.
Payment of Colorado Fuel Excise Taxes
Payments of fuel excise taxes are made by fuel vendors, not by end consumers, though the taxes will be passed on in the fuel's retail price. Fuel tax is due on the 26th of each month.
Colorado Fuel Tax Reports
Fuel producers and vendors in Colorado have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Colorado government. Click the button below to view details on 0 CO fuel tax reports.
View Fuel Tax Reports
Federal Fuel Excise Taxes
The price of all motor fuel sold in Colorado also includes Federal motor fuel excise taxes, which are collected from the manufacturer by the IRS and are used to support the Federal Highway Administration. Federal excise tax rates on various motor fuel products are as follows:
| Gasoline | $0.18.4 per gallon |
|---|---|
| Diesel and Kerosene | $0.242 per gallon |
| Liquefied Petroleum Gas | $0.183 per gallon † |
| Liquefied Natural Gas (LNG) | $0.243 per gallon † |
| Compressed Natural Gas (CNG) | $0.184 per gallon † |
Included in the Gasoline, Diesel/Kerosene, and Compressed Natural Gas rates is a 0.1 ยข per gallon charge for the Leaking Underground Storage Tank Trust Fund (LUST).
† These tax rates are based on energy content relative to gasoline.
What percentage of the cost of gas in Colorado comes from taxes and gas station profit?
The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In most areas, state and federal excise taxes amount to about 13% of the cost of a gallon of gas. Gas stations generally only profit a few cents per gallon.
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