Who owes use tax on self-produced fuel?
As of Jan. 1, 2018, businesses owe use tax on fuel they produce and use. Biomass fuel remains exempt from use tax.
Who controls and posts the value of the refinery fuel?
The United States natural gas wellhead determines the value of the fuel on a monthly basis. Once the value of the fuel is determined, the U.S. Energy Information Administration publishes the price of the fuel.
How do you calculate use tax on refinery fuel?
When you calculate the use tax on refinery fuel, base the value of the fuel on the most recent monthly United States natural gas wellhead price. Once the value is determined, use the following rates to calculate the use tax:
- 0.963% - From Jan. 1, 2018 through Dec. 31, 2018.
- 1.926% - From Jan. 1, 2019 through Dec. 31, 2019.
- 2.889% - From Jan. 1, 2020 through Dec. 31, 2020.
- 3.852% - From Jan. 1, 2021, and after.
Self-produced fuel refers to the extractor or manufacturer using the fuel directly in the operation of the particular extractive operation or manufacturing plant that produced or manufactured the fuel.
Biomass fuel means wood waste and other wood residuals, including forest-derived biomass. This definition also includes partially organic by-products of pulp, paper, and wood manufacturing processes. It does not include firewood or wood pellets.