Fuel Tax | Exempt Use of Fuel

Colorado tax law allows for a refund of fuel tax paid for gasoline, aviation fuel, and special fuels when the fuel is used for approved commercial purposes off Colorado roads. Refunds are not allowed for fuel taxes paid on fuel used for recreational purposes. For more information, review the FYI Excise 7 guidance publication.

Billing Notice

When the Exempt Fuel user overclaims a refund, the department will send a billing notice. If you have an exempt fuel tax bill, you should use the payment voucher document that comes with the "Statement of Account." The payment and voucher should be mailed to the address on the "Statement of Account." Colorado law also requires that any fuel distributor, supplier, carrier, exporter, importer, blender, refiner, licensee, or terminal operator shall use Electronic Funds Transfer (EFT) to remit all taxes required to be remitted to the Department of Revenue.

Exempt Fuel Permit Holder with an IFTA License

If you have an IFTA license and an approved fuel tax refund permit, you must file two refund claim forms each quarter.

  1. One claim form for filing non-IFTA exempt fuel tax refund requests.
  2. The second claim form for filing exempt fuel refund requests associated with the taxpayer's IFTA vehicles. You must attach a copy of the IFTA tax report filed for the corresponding calendar quarter to this claim form.

If filing using Revenue Online, you are required to complete both the “Exempt Fuel Refund Claim Gallons” and the “Exempt Fuel Refund Claims Gallons - IFTA” tabs, and send a copy of your IFTA return via secure web message from your Revenue Online account.