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.