Aviation Taxes

Aviation Fuel Excise Tax

Colorado imposes an excise tax on aviation gasoline and jet fuel acquired, offered for sale, sold, or used in this state. Excise fuel tax are due when removed from a terminal or imported into the state. The tax is calculated on gross gallons acquired. The tax rate for aviation gasoline is 6¢ per gallon and the rate for aviation jet fuel is 4¢ per gallon.

Aviation Jet Fuel has an exemption from excise tax for sales to direct air carriers, and FAA Part 121 or 135 air carriers as defined in §39-27-101(6), §39-27-101(19) and §39-27-101(20), C.R.S. When reporting aviation fuel disbursements to a FAA Part 121 or Part 135 air carrier, fuel distributors must provide the airport destination in Column 6 of their Distributor Schedule of Disbursements Worksheet (DR 7050). The Federal Aviation Administration (FAA) airport code reports the destination airport. For a listing of Colorado airports, visit the Colorado Airports Map provided by the Colorado Department of Transportation (CDOT).

Aviation Gas is not exempt from excise tax, so it would be exempt from Aviation Sales Tax.

Aviation Fuel Sales Tax

Colorado state and state-collected local sales tax is due on aviation jet fuel used in turbopropeller or jet engine aircraft for all FAA Part 121 or 135 air carriers. Sales tax is charged on the purchase price of the fuel, which may include the cost of fuel, state and federal excise taxes, and any airport fuel flowage fees.

The amount of aviation jet fuel sold (retail sales) is reported when the retailer/distributor files their Aviation Fuel Tax Return (DR 1510). The entity that sells the fuel to the end user is responsible for remitting the aviation fuel sales tax. Only fuel is reported on the Aviation Fuel Sales Tax Return (DR 1510).

Retailers with total net taxable sales up to $1,000,000, cannot retain 4%, up to the maximum state service fee allowed of $1,000.
Retailers with total net taxable sales over $1,000,000 are not able to retain the state service fee. The 4.0% state service fee is calculated on the return, form DR 1510. The reductions to the state service fee are calculated on the State Service Fee Worksheet, form DR 0103.

The revenues generated from the state sales tax are transferred to the aviation fund as required by statute (§43-10-109(1) C.R.S.). Tires, motor oil, and other aviation items are reported on the Retail Sales Tax Return (DR 0100).
 

Special Taxation Districts

RTD (Regional Transportation District), RTA (Rural Transportation Authority), and other special district sales tax must be paid if the sales are made within the boundaries of the district. Applicable county, city, and other local jurisdictional taxes must be remitted on the Aviation Fuel Sales Tax Return, DR 1510 form. Scientific and Cultural Facilities District (SCFD) taxes are not dues on the sale of aviation fuel.

Flowage Fees

If sales or use tax is imposed on the sale, the fee is subject to state and/or jurisdictional taxes that apply to the sale. Jet fuel or gasoline used for aviation can be subject to a fuel flowage (in-plane) fee imposed by the airport. This fee is part of the retail purchase price.

Use Tax on Airplanes

When purchasing personal property, including airplanes, the buyer needs to file a Consumer Use Tax Return (DR 0252) if the seller did not collect and remit sales tax for the purchase. The Consumer Use Tax Return can also be filed using Revenue Online. For airplane purchases, the return and the use tax payment are due on or before the 20th of the month following the purchase. For more information, visit the Consumer Use Tax section of this website.

Visit the How to Look up Sales and Use Tax Rates web page for information on how to determine the applicable use tax rate, which would include state, county, municipal, and special district use tax.

Aviation Excise Taxes

Visit the Fuel Tax Licensing web page for information on licensing and reporting requirements.
 

Aviation Sales Tax

A sales tax license and a physical location are required for collecting aviation fuel sales tax.
 

Add or Close Locations

To add a new location to your account or to close an existing location, submit a request to the Department by email or a secure web message through Revenue Online. When requesting a new site, you must include the commence date of the site, a physical address. All account locations for aviation fuel sales tax must be a new physical location. To close an existing site, submit a request to the Department by email or a secure web message through Revenue Online.

Excise taxes will be due on that fuel instead of sales tax if the fuel is not sold for use in Part 121 or 135 aircraft, or the fuel is not sold at an airport. For jurisdictional codes and additional information, contact the Fuel Tax Unit by, contact the Fuel Tax Unit by email or send a secure web message through Revenue Online.