Fuel Tax | Gasoline & Special Fuels

Gasoline

Gasoline and gasohol (gasoline mixed with ethyl alcohol) motor fuel taxes are due when removed from a terminal or imported into the state.. The tax is calculated on gross gallons acquired.  The tax rate is $.022 per gallon.

Gasoline is subject to the Environmental Response Surcharge (ERS), and the Perfluoroalkyl and Polyfluoroalkyl substances (PFAS) fee, and is only exempt if exported. 

Special Fuels

The special fuel excise tax is due when removed from a terminal or imported into the state. The tax is calculated on gross gallons acquired. The rate is $0.205 per gallon for all special fuels with the exception of liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG). These fuels are taxed at a separate rate that changed annually from January 1, 2014, through 2019. For more information on the rate schedule, see Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG) and Fuel Rates, visit the Compressed & Liquefied Gas web page.

Special Fuels (including dyed) except LPG, LNG, and CNG are subject to the Environmental Response Surcharge (ERS), and the Perfluoroalkyl and Polyfluoroalkyl substances (PFAS) fee, and are only exempt if exported or specially formulated for use in aviation or railroad equipment (exempt for ERS only). 

Allowances

When reporting the acquisition of gasoline and special fuel and determining the amount of excise tax due, Colorado law provides for a 2% allowance of the total amount of fuel to be deducted by the licensed distributor. The 2% allowance covers any losses in transit and in unloading the fuel and costs of collection.