Tax Classifications/Types

There are three main tax classes in the petroleum industry: Excise Tax, Environmental Tax, and Sales Tax.

Fuel taxes can be levied at four different governmental levels: Federal, State, County, and City.

Excise Tax is assessed on Fuel (Gasoline, Diesel, CNG, etc.) and can be levied up to four levels.  Excise Tax is primarily charged on a Per Gallon basis.

Environmental Tax is levied primarily on the federal and state level.  Environmental Tax is primarily charged on a Per Gallon basis.

Sales Tax (where applicable to Fuel) can be levied on the state, county, and city levels.   Some states levy Sales Tax in addition to Excise Tax.  Sales Tax is primarily charged on a Percentage basis.  CFN calculates Sales Tax under these conditions:  Sales Tax on applicable products will be charged on Foreign transactions involving Out-of-State participants ONLY.  For example:  At a California site, transactions with California participants would not be charged Sales Tax, but transactions with Oregon or Arizona participants would be charged Sales Tax.  The In-State Remote participant will be responsible to charge the Sales Tax directly to its customer, and file & remit this tax to the state. 

Generally, the Sales Tax is calculated by multiplying the percentage tax by the sum of:

CFN BASE PRICE (OPIS + Haul + Fee) + Federal Excise Tax + Federal Environmental Tax + State Excise Tax + State Environmental Tax + County Excise Tax (if any) + City Excise Tax (if any).

Dyed Diesel fuel is usually not charged Excise Tax (except in states that do not permit tax exempt sales at the Cardlock retail level).  Some states charge Sales Tax in lieu of Excise Tax for Dyed Diesel fuel.

Oil products are subject to Environmental and Sales Taxes.