Aviation Taxes
1

Aviation Taxes

Filing Information

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. Up to three tax-deferred transactions are allowed between Colorado licensed distributors after being imported or removed from the terminal rack. The tax rate for aviation gasoline is 6¢ per gallon. The tax rate for aviation jet fuel is 4¢ per gallon.

Aviation 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 4 of their Distributor Schedule of Disbursements Worksheet (DR 7065). The Federal Aviation Administration (FAA) airport code is used to report the destination airport. For a listing of Colorado airports, visit the Colorado Airports Map provided by the Colorado Department of Transportation (CDOT).

Aviation Fuel Sales Tax

Colorado state and state-collected local sales tax is due on aviation jet fuel used in turbo-propeller or jet engine aircraft. Sales tax is charged on the purchase price of the fuel. The purchase price 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 Colorado Aviation Fuel Tax Return and Reporting Form. Retail sales tax filers will report on the Aviation Fuel Sales Tax Return (DR 1510). The entity who 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).

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) sales tax must be paid if the sales are made within the boundaries of the districts. RTA (Rural Transportation Authority) sales tax must be paid if sales are made within the boundaries of the RTA district. Applicable county, city and other local jurisdictional taxes must be remitted on the 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 Tax Accounts & Licensing

Aviation Excise Taxes

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

Aviation Sales Tax

A sales tax license is required for aviation fuel sales tax. Also, a physical location is required for the collection of 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 are should be added as 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 may 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.  Contact the Fuel Tax Unit by email or send a secure web message through Revenue Online for jurisdictional codes and additional information.