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.
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 fuel taxes be remitted to the Department of Revenue electronically.
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.
One claim form for filing non-IFTA exempt fuel tax refund requests.
The second claim form for filing exempt fuel refund requests is 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.