Petroleum products tax

What is the petroleum products tax (PPT)?

The petroleum products tax (PPT) is a tax on the first possession of petroleum products in Washington. It is based on the wholesale value of petroleum products in this state.

You may qualify for a deduction if you are a licensed petroleum products exporter who removes petroleum products at the rack for direct delivery outside of Washington.

Why is PPT collected?

PPT revenue is deposited into the Pollution Liability Insurance Program Trust account, which is used for environmental cleanup.

• The department collects PPT: when the account balance in the previous calendar quarter falls below $15 million.
• The department temporarily suspends collecting PPT: when the account balance in the previous calendar quarter exceeds $30 million.

How do I pay the tax?

You report the tax when filing your excise tax return in MyDOR.

Note: If the tax is temporarily suspended, the PPT line item will be grayed out on your return.

What rate do I pay?

What if I purchase petroleum products after someone else paid the PPT?

If your invoice shows a line item for PPT, it does not mean you owe PPT to the department. It shows that the seller already paid PPT on the product you purchased. 

If you think there is a mistake on the invoice, contact the seller directly.

Definitions

Petroleum product includes plant condensate, lubricating oil, gasoline, aviation fuel, kerosene, diesel motor fuel, benzol, fuel oil, residual oil, and every other product derived from the refining of crude oil. Crude oil or liquefiable gases are not petroleum products.

Possession is the control of a petroleum product and includes both actual and constructive possession.

• Actual possession occurs when the person with control has physical possession.
• Constructive possession occurs when the person with control does not have physical possession.

Control means the power to sell or use, or to authorize the sale or use by another.