Fuel Tax

The following allowance formulas have been derived through tests and may be used by eligible taxpayers. Documentation must be retained or credit will be disallowed upon audit.

Before commencing business, on application, a distributor shall first procure a license from the Commissioner permitting him or her to continue or to engage in business as a distributor. Upon approval of the application and bond (see bond requirements below), the Commissioner shall issue to the distributor a nonassignable license which shall continue in force until surrendered or revoked.

Vermont diesel fuel tax applies to all clear diesel.

• Clear diesel fuel is not dyed and has a low sulfur content.
• It may be used in all registered motor vehicles and off-highway equipment.
• Motor Fuel Tax Assessment.
• Motor Fuel Transportation Infrastructure Assessment Fee.

Vermont diesel fuel tax does not apply to dyed diesel. Dyed diesel is colored red and has either a high or low sulfur content.

You may claim a refund of the Vermont diesel tax (and Motor Fuel Transportation Infrastructure Assessment fee) if: