TAXATION OF SALES OF GASOLINE

M.G.L. pt. Part I, tit. Title IX, ch. c. 64A

in effect

M.G.L. c. 64A, § 1 Definitions

c. 64A, § 1. Definitions [Text of section effective for tax years beginning January 1, 2009 and ending December 31, 2017. See 2008, 206, Sec. 8.] Section 1. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:— ''Appellate tax board'', the board established by section 1 of chapter 58A. ''Average price'', the weighted average selling price per gallon of fuel exclusive of federal and state motor fuel taxes imposed thereon sold by licensees, as determined by the commissioner on a consistent basis from information furnished by distributors, unclassified exporters and unclassified importers with their monthly returns and from other statistical data reflecting the average level of such prices at the time such determination is made. ''Cellulosic biofuel'', fuel that may be used in place of petroleum-based fuel derived from cellulose, hemicellulose or lignin derived from renewable biomass. ''Commissioner'', the commissioner of revenue. ''Department'', the department of energy resources within the executive office of energy and environmental affairs. ''Distributor'', shall include: (1) any person qualified to do business in the commonwealth who produces, refines, manufactures or compounds fuel, as herein defined, or any person who operates a port or pipe line terminal within the commonwealth for the receipt of fuel, as herein defined; and (2) any person who elects to qualify as a distributor by importing into the commonwealth or by receiving within the commonwealth fuel, as herein defined, by pipe line, vessel, tank car or tank truck lots, for resale in pipe line, vessel, tank car or tank truck lots; provided, that no person under clause (2) shall qualify as a distributor unless his facilities is regularly used for the receipt and storage of fuel, as herein defined, are such that not less than 25,000 gallons may be stored in the aggregate, at 1 location within the commonwealth; and provided, further, that at least 75 per cent of the fuel imported or received by him is sold to others for resale exclusive of sales to government instrumentalities. ''Eligible cellulosic biofuel'', cellulosic biofuel that yields at least a 60 per cent reduction in lifecycle greenhouse gas emissions relative to average lifecycle greenhouse gas emissions for petroleum based fuel sold in 2005, as determined by the department in consultation with the department of environmental protection and the executive office of energy and environmental affairs. ''Feedstock'', raw material used to produce a fuel. ''Fuel'', all products commonly or commercially known or sold as gasoline, including casing-head and absorption or natural gasoline, regardless of their classification or uses; and any liquid prepared, for American Society Testing Materials Method D–86, not more than 9 per cent at 176° Fahrenheit, and which have a distillation range of 150° Fahrenheit, or less, or liquefied gases which would not exist as advertised, offered for sale, or sold for use as or commonly and commercially used as a fuel in internal combustion engines, which when subjected to distillation in accordance with the standard method of test for distillation of gasoline, naphtha, kerosene and similar petroleum products (American Society for Testing Materials Designation D–86) show not less than 10 per cent distilled (recovered) below 347° Fahrenheit (175° Centigrade) and not less than 95 per cent distilled (recovered) below 464° Fahrenheit (240° Centigrade); provided, that the term ''fuel'' shall not include industrial solvents or naphthas which distill, by said American Society liquids at a temperature of 60° Fahrenheit and a pressure of 14.7 pounds per square inch absolute. For the purposes of this chapter, ''fuel'' shall include products sold or used as fuel for aircraft, except aircraft fuel as defined in section 1 of chapter 64J. ''Lifecycle greenhouse gas emissions'', the aggregate quantity of greenhouse gas emissions, including direct emissions and significant indirect emissions such as significant emissions from and use changes, as determined by the department in consultation with the department of environmental protection and the executive office of energy and environmental affairs, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential. ''Low carbon fuel standard'', a requirement that the average lifecycle greenhouse gas emissions attributable to use of energy in an economic sector are equal to or less than a specified numeric level, or a similar standard or system, such as the requirement contained in California Executive Order S–1–07. The level may be stated as units of greenhouse gas emissions per unit of delivered energy, corrected for differences in the efficiency of the energy in the particular end use; for example the difference between efficiency of a gasoline engine and an electric motor in powering a vehicle. The standard may apply to energy used in motor vehicles or to another energy consuming sector. ''Motor vehicle'', shall include any vehicle propelled by any power other than muscular, except boats, tractors used exclusively for agricultural purposes and such vehicles as run only on rails or tracks. ''Purchaser'', shall include, in addition to its usual meaning, a distributor and unclassified importer in the case of a transfer of fuel by a distributor or an unclassified importer into a motor vehicle, or into a receptacle from which fuel is supplied by him to his own or other motor vehicles. ''Renewable biomass'', non-fossil fuel based material, including: planted crops; crop residues; planted trees and tree residues from sustainably managed forests; waste materials including animal waste, animal by-products, organic portions of municipal solid waste, grease trap waste, construction and demolition debris; and algae, or as otherwise determined by the department, in consultation with the department of environmental protection and the executive office of energy and environmental affairs. ''Sale'', shall include, in addition to its usual meaning, the transfer of fuel by a distributor or an unclassified importer into a motor vehicle or into a receptacle from which fuel is supplied by him to his own or other motor vehicles. ''Tax per gallon'', shall be 24 cents per gallon. For aviation fuel, ''tax per gallon'' shall mean 71/2 per cent of the average price, as determined by the commissioner, for each calendar quarter, computed to the nearest tenth of a cent per gallon; provided, however, that such tax shall not be less than 10 cents per gallon. ''To sell'', in all of its moods and tenses, shall refer to a sale as herein defined. ''Unclassified importer'', any person who imports or causes to be imported fuel, as herein defined, for use, distribution or sale in the commonwealth, but who does not qualify as a distributor. ''Unclassified exporter'', any person licensed as a distributor in another state who exports or causes to be exported fuel, as herein defined, for use, distribution or sale outside the commonwealth, but who does not qualify as a distributor. ''Waste feedstock'', previously used or discarded solid, liquid or contained gaseous material with heating value resulting from industrial, commercial or household food service activities that would otherwise be stored, treated, transferred or disposed. Waste feedstock shall include, but not be limited to: waste vegetable oils, waste animal fats, substances derived from wastewater and the treatment of wastewater or grease trap waste. Waste feedstock shall not include petroleum-based waste or waste that otherwise meets the definition of hazardous waste, unless otherwise determined by the department of environmental protection.

M.G.L. c. 64A, § 1A Reduction of tax per gallon on fuel containing eligible cellulosic biofuel; determination of amount of reduction

c. 64A, § 1A. Reduction of tax per gallon on fuel containing eligible cellulosic biofuel; determination of amount of reduction [Text of section effective for tax years beginning January 1, 2009 and ending December 31, 2017. See 2008, 206, Sec. 8.] Section 1A. Notwithstanding the definition of ''tax per gallon'' in section 1 and subject to section 2O of chapter 29, for fuel consisting of eligible cellulosic biofuel or of a blend of gasoline and eligible cellulosic biofuel, the tax per gallon shall be reduced in proportion to the percentage of the fuel content consisting of eligible cellulosic biofuel, measured by available energy content, as determined by the department of energy resources, hereinafter referred to as the department. Manufacturers and wholesale distributors of cellulosic biofuel who seek to have their fuel classified as eligible cellulosic biofuel shall provide documentation satisfactory to the department that such fuel yields at least a 60 per cent reduction in lifecycle greenhouse gas emissions per unit of delivered energy, in comparison to the petroleum-based fuel displaced. In determining the percentage reduction in lifecycle greenhouse gas emissions relative to petroleum-based fuel achieved by particular supplies of cellulosic biofuel, the department, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall use information and best practices available from other sources, including other states, the federal government, foreign governments, academic research and private and non-profit organizations. If the department determines through an initial review that a waste feedstock will yield at least a 60 per cent lifecycle greenhouse gas reduction, is free of hazardous materials and hazardous waste and meets any other conditions established by the department, the department may exempt fuel produced from such a feedstock from a full lifecycle greenhouse gas emissions analysis. The department, in consultation with the department of environmental protection and the executive office of energy and environmental affairs, shall promulgate rules and regulations necessary to carry out the provisions of this section.

M.G.L. c. 64A, § 2 Licenses

c. 64A, § 2. Licenses Section 2. Any person who qualifies under paragraph (c), or paragraph (i), or paragraph (j) of section one may apply to the commissioner, in accordance with section sixty-seven of chapter sixty-two C, for a license as a distributor, as an unclassified importer, or as an unclassified exporter, as the case may be. No distributor or unclassified importer shall make any sale of fuel in the commonwealth, except a sale which is exempt under the constitution and laws of the United States, without such a license.

M.G.L. c. 64A, § 3 Record of sales

c. 64A, § 3. Record of sales Section 3. Every distributor, unclassified importer and unclassified exporter shall keep a complete and accurate record of all sales of fuel, including the name and address of the purchaser, the place and date of delivery, the gross receipts and number of gallons for each type of fuel sold, and a complete and accurate record of the number of gallons imported, produced, refined, manufactured, compounded or exported and the date of importation, production, refining, manufacturing, compounding or exporting. Every distributor, unclassified importer and unclassified exporter shall also deliver with every consignment of fuel to a purchaser within the commonwealth a written statement containing the date of purchase, the names of the purchaser and seller, the number of gallons delivered, and shall retain a duplicate of each statement. Said records and said written statements shall be in such form as the commissioner shall prescribe and shall be preserved by said distributors, said unclassified importers, said unclassified exporters and said purchasers respectively, for a period of three years and shall be offered for inspection at any time upon oral or written demand by the commissioner or his duly authorized agents.

M.G.L. c. 64A, § 3A Determination of average price of fuel and tax per gallon; notice

c. 64A, § 3A. Determination of average price of fuel and tax per gallon; notice Section 3A. The commissioner shall, before the commencement of each calendar quarter, determine the average price of fuel and the tax per gallon to be applicable for each of the three months in the ensuing calendar quarter; and shall notify every distributor, unclassified importer and unclassified exporter of the tax per gallon that shall apply for such calendar quarter.

M.G.L. c. 64A, § 4 Monthly returns and payment of excise; tax rate

c. 64A, § 4. Monthly returns and payment of excise; tax rate Section 4. At the time of filing a return required by subsection (a) of section sixteen of chapter sixty-two C, every distributor and unclassified exporter shall pay to the commissioner an excise at the tax per gallon determined by the commissioner upon each gallon of fuel sold by him in the commonwealth during the calendar month covered by the return. At the time of filing a return required by paragraph (a) of section sixteen of chapter sixty-two C, every unclassified importer shall pay to the commissioner an excise at the tax per gallon determined by the commissioner upon each gallon of fuel imported or caused to be imported during the calendar month covered by the return. Notwithstanding the foregoing, the tax per gallon payable upon each gallon of fuel sold, imported or caused to be imported as aviation fuel shall be separately determined by the commissioner utilizing the same procedures as those used for other fuel and such tax per gallon as so determined shall apply to each gallon of fuel sold, imported or caused to be imported as aviation fuel by a licensee in the commonwealth during the calendar month covered by the return.

M.G.L. c. 64A, § 7 Reimbursement for non-highway users of gasoline

c. 64A, § 7. Reimbursement for non-highway users of gasoline Section 7. Any person who shall buy any fuel other than aviation fuel on which an excise has been paid or is chargeable under this chapter, and shall consume the same in any manner except on a farm for farming purposes or in the operation of motor vehicles upon or over highways, whether or not such vehicles are registered under the provisions of section five of chapter ninety, and any person who transfers into another state fuel on which the excise has been paid or is chargeable under this chapter, and pays an additional excise or other tax which is properly due to such other state on such fuel so transferred, shall be reimbursed the amount of said excise in the manner and subject to the conditions hereinafter set forth; provided, however, that any turnpike constructed by the Massachusetts Department of Transportation in accordance with chapter three hundred and fifty-four of the acts of nineteen hundred and fifty-two, as amended, shall not be considered a highway for the purposes of this chapter until such turnpike shall have become a part of the state highway system as provided in section seventeen of said chapter three hundred and fifty-four. All claims for reimbursement shall be for not less than one dollar, shall be made by affidavit in such form and containing such information as the commissioner of revenue shall prescribe, shall be accompanied by original invoices or sales receipts of fuel and in the case of claims for reimbursement for tax on fuel consumed on said turnpike, shall be made with respect to a calendar half year and shall be accompanied by the toll receipts given to users of said turnpike or invoices rendered to such users by said Authority. All claims for reimbursement shall be filed with the commissioner within two years from the date of purchase or invoice of fuel; except claims for reimbursement of the excise paid for fuel used in producing or generating power for the operation of watercraft of every description, other than a seaplane, which shall be filed within six months from the date of purchase or invoice of such fuel. Such toll receipts given to users of said turnpike or invoices rendered to such users by the said Authority shall be accepted by the commissioner as evidence of the use on said turnpike of fuel in the proportion of one gallon for each fifteen miles of indicated travel by passenger cars, ambulances, hearses, motorcycles and light trucks, and in the proportion of one gallon for each five miles of indicated travel by all other trucks and buses. No claims for reimbursement for tax on fuel consumed on said turnpike shall be allowed unless it shall appear from said toll receipts or invoices and from said invoices or sales receipts of fuel that the purchase of the fuel which is the basis for the claim of reimbursement took place on the same or any one of the three preceding calendar days as the travel on said turnpike or unless evidence satisfactory to the commissioner is furnished that such fuel was transferred from bulk to the vehicle tank within the same period. The commissioner may require such further information as he shall deem necessary for the determination of such claims, and shall transmit all claims approved by him to the comptroller for certification; and the amount approved by the commissioner and certified as aforesaid shall be paid forthwith from the proceeds of the excise tax levied under this chapter, without specific appropriation.

M.G.L. c. 64A, § 7A Reimbursement to farm users of gasoline

c. 64A, § 7A. Reimbursement to farm users of gasoline Section 7A. Any person engaged in the business of farming who shall buy any fuel on which an excise has been paid or is chargeable under this chapter and who, having consumed the same for farm purposes and is entitled to a refund of the federal gasoline tax paid on account of such fuel pursuant to section sixty-four hundred and twenty of the Federal Internal Revenue Code shall be reimbursed the amount of said excise in the manner and subject to the conditions herein provided. Claim for reimbursement of said excise with respect to fuel used during the taxable year for which such refund of the federal gasoline tax is due shall be filed on or before the fifteenth day of the fourth month following the close of such taxable year. Such claim shall be on a form prescribed by the commissioner. The commissioner shall transmit all claims approved by him to the comptroller for certification, and the amount approved by the commissioner and certified as aforesaid shall be paid forthwith from the proceeds of the excise tax levied under this chapter without specific appropriation.

M.G.L. c. 64A, § 8 Application of chapter to interstate and foreign commerce

c. 64A, § 8. Application of chapter to interstate and foreign commerce Section 8. No provision of this chapter shall apply or be construed to apply to foreign or interstate commerce, except in so far as the same may be permitted under the provisions of the constitution and laws of the United States.

M.G.L. c. 64A, § 8A Regulation of tax free sales

c. 64A, § 8A. Regulation of tax free sales Section 8A. A distributor duly licensed in this commonwealth may sell fuel tax-free to another person who is licensed as a distributor in this commonwealth. He may sell fuel tax-free to any person who is a licensed distributor in another state, provided, that the entire quantity purchased is to be exported forthwith from this commonwealth prior to use or resale, and provided, further, that such person is licensed by the commissioner as an unclassified exporter.

M.G.L. c. 64A, § 9 Purchaser to bear tax; sales separate from tax; penalty

c. 64A, § 9. Purchaser to bear tax; sales separate from tax; penalty Section 9. Except as otherwise provided in section seven, the tax in every instance shall be borne by the purchaser, and no person offering fuel for sale shall sell, advertise or offer for sale said fuel separately from the tax imposed by this chapter. For any violation of this section, the license to keep and sell crude petroleum or any of its products, issued by the licensing authority under chapter one hundred and forty-eight, shall be suspended by the said authority on request of the commissioner of revenue for such time as said commissioner deems proper.

M.G.L. c. 64A, § 11 General penalties

c. 64A, § 11. General penalties Section 11. Any distributor, unclassified exporter, unclassified importer, or purchaser of fuel who violates any provision of this chapter shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.

M.G.L. c. 64A, § 12 Sales exempted by federal law; restraining collection of excise

c. 64A, § 12. Sales exempted by federal law; restraining collection of excise Section 12. The supreme judicial or the superior court shall have jurisdiction in equity to restrain the collection, upon any sale exempted by the constitution and laws of the United States, of the excise imposed by this chapter. The bill shall be brought against the commissioner, whether the question of the collection of the excise is in the hands of the attorney general or pending before the appellate tax board or is still in the hands of the commissioner.

M.G.L. c. 64A, § 13 Disposition of moneys received

c. 64A, § 13. Disposition of moneys received Section 13. All sums received from the excise imposed on aviation fuel, and related penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under sections 7 and 7A, shall be credited to the Commonwealth Transportation Fund and may be used for airport development projects approved and carried out at airports and landing facilities under 49 U.S.C. App. s 2210; and all other sums received from the excise imposed in section 4, and related penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under said sections 7 and 7A, shall be credited as follows: (i) 99.85 per cent shall be credited to the Commonwealth Transportation Fund to be used for transportation-related purposes; and (ii) 0.15 per cent shall be credited to the Inland Fisheries and Game Fund established in section 2C of chapter 131.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64AFetched: 10/20/2026