To apply for a refund permit and account you must complete a Gasoline/Special Fuel Tax Refund Permit Application (DR 7189) and submit it to the Colorado Department of Revenue. The application may be submitted before or at the time of the first refund claim. If you are licensed for the International Fuel Tax Agreement (IFTA), you must mark the "yes" checkbox on the application.
Approved Exemption Percentage
Upon approval of the application, the Department will issue a refund permit/account number and refund claim forms with the approved exemption percentage to calculate the amount of the refund allowed. Written notification will be sent four to five weeks after the application is received at the Department.
The approved exemption percentages are established from the historical average in the industry or from an industry study provided by an industry group. Your application must identify the industry that accurately describes your business, fuel use, and equipment.
Change in Business Operations Affecting Fuel Use and the Exempt Percentage
If you have a change in business operations, which affects your business' fuel use on an established account, provide the Excise Tax Section with information to support the change for review and approval. Documentation must be submitted to show the business change, change in equipment, and the change in operations to include exempt, non-exempt, and total fuel usage.
The documentation must include actual records for a year to account for cyclical or seasonal changes affecting the business. Suggested data might include equipment and vehicle records and fuel use, actual mileage over the road, miles per gallon, and include inventory records of fuel and equipment. Any request for a change without supporting documentation will be disallowed.
Business Ownership Changes
Refund permits/accounts are not transferable. A new application must be submitted for new businesses or changes in ownership.
How to Report Account Changes
Any changes in the nature of the business, account name, DBA, ownership, address, equipment, storage capacity, or fuel use must be sent in writing:
Colorado Department of Revenue
Attn: Fuel Tax Unit
P.O. Box 17087
Denver, CO 80217-0087