Petroleum products tax

On Jan. 1, 2020, Washington’s Petroleum Products Tax (PPT) is reinstated until further notice.

For more information see special notice, State resumes petroleum products tax collection. 

What is the petroleum products tax?

This tax applies to the person who first possesses petroleum products within the state. This tax is imposed on the wholesale value of petroleum products in this state.

You may be able to take a deduction if you are a properly licensed petroleum products exporter that removes petroleum products at the rack for direct delivery outside of Washington. 

How do I pay the tax?

You report the tax on the excise tax return.

What rate do I pay?

You pay the rate of .003 (three-tenths of 1%) which is based on the product's wholesale value.

What are the funds used for?

The funds finance a state pollution liability insurance program. The program provides affordable insurance to owners and operators of underground petroleum storage tanks and heating oil tanks.