Petroleum products tax

Beginning April 1, 2018, the petroleum products tax is re-imposed. See our Special Notice for more information. 

The state suspended the petroleum products tax from July 1, 2017 through March 31, 2018. 
 

What is the petroleum products tax?

This tax applies to the person who first possesses petroleum products within the state. The law requires us to impose this tax on the wholesale value of petroleum products in Washington.

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 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.