The following is a "cut-and-paste" from an article I authored which originally appeared in the Killeen Daily Herald.

For those interested, the necessary form to claim your refund is found here: CLAIM FORM

The form looks like this:




Reimbursement available for taxes paid on boat fuel bought at the pump
by Bob Maindelle

Although I have addressed this issue in this column in years past, as inflation rises and our dollars do not go as far as they did just a short time ago, I thought this topic warranted another visit.

In Texas, individuals purchasing gasoline for use in vehicles or machinery which operates off-road (i.e. boats, tractors, four-wheeler, lawn mowers, etc.) may file a simple, one-page form claiming their refund of the state’s portion of road taxes on each gallon of gas used for such off-road purposes.

I have been taking advantage of this allowance for 18 years now and the process is straightforward.

The most important step you, the Texas boater, must take to be reimbursed is to save your receipts to substantiate your claim.

So, as 2023 gets underway, it is both time to file your claim for 2022 (if you saved your receipts), and/or begin saving your 2023 receipts so that at this time next year, you have a legitimate claim to file.

GET IN A ROUTINE

Because only taxes on gasoline used off-highway can be claimed, I make a habit of fueling my boat and my tow vehicle separately and charging these purchases to separate credit cards, thus obtaining separate receipts and in no way blurring the line between on-highway and off-highway use.

I keep a manila folder right next to my computer desk at my home office into which I drop all of my boat fuel receipts. When I first began doing this, I marked each receipt with the printed words “BOAT GAS” followed by my last name. Since then, I had an inexpensive self-inking rubber stamp made just for this purpose, which I purchased from ExcelMark online.

PREPARING TO FILE A CLAIM

The week before last, I pulled out all of my receipts from the manila folder they were stored in and organized them by date — 82 of them in all.

As I read off the date, number of gallons pumped and price paid from each receipt, my wife typed these bits of data into three separate columns on an Excel spreadsheet.

I then tallied the total number of gallons used and the total price paid using the summation functions inherent to the spreadsheet.

I was now ready to enter data onto the claim form.

COMPLETING FORM 06-106

Before completing the necessary claim form, you must have a form in hand. The form 06-106 is easily downloaded from the Texas Comptroller’s website. Go to www.Comptroller.Texas.gov then look for the search tool (a blank line for data entry with a magnifying glass symbol on the far right side of it, about one-third of the way down the page). Enter 06-106 in that blank and click on the magnifying glass symbol. The search engine will bring up a printable document file (pdf) for you to download and print.

Blanks c. (Social Security number), d. (fuel type claimed), e. (first time submission or not), f. (period of claim), g. (name and address), 6. (gallons of gas used off-highway), 13. (total gallons claimed), and the signature, date and phone number blanks must be completed.

Make a copy for your records and mail the form (only) back to the address shown in the lower left corner of the front of the form. Do not include any supporting documentation with your claim form.

Here's a link to the form:

WHAT ABOUT MY SPREADSHEET AND RECEIPTS?

You might be wondering why you saved your receipts and made a spreadsheet since these things do not get submitted with the claim form.

The spreadsheet was created so you could calculate the total number of gallons of off-highway gas you purchased, which was needed to complete blank 6. on the form.

The receipts must be retained in case you are audited, so you can show proof that the number of gallons you purchased was accurate. In the last 15 years, I have been audited twice. Both times I submitted photocopies of all my receipts, and both claims were paid in full thereafter.

In speaking with other boaters about this, it is my opinion that as a first-time filer your chances of being audited are higher.

One other thing worth mentioning: If you use your spreadsheet to divide your total price paid for gas by the total number of gallons purchased, you can calculate the average price per gallon you paid over the course of the past year.

HOW MUCH WILL I GET BACK?

The per-gallon reimbursement rate for gasoline purchased in 2022 will be $0.20 per gallon. Simply multiplying the number of gallons you purchased by 0.2 will give you the approximate value of your refund. I say “approximate” because Texas regulations allow for the state to deduct up to 2% of your claim, which it does.

Your reimbursement will come in the form of a check.

I have received my reimbursement check as quickly as three weeks from the date it was submitted. My 2019 check was the slowest to arrive. It was cut on March 4 and arrived several days later delivered by the U.S. Post Office.

TIME LIMITS

Here, verbatim, are the rules concerning the timing of your claim as printed on the backside of Form 06-106:

“Claim for refund of fuels tax paid must be filed and postmarked ON OR BEFORE ONE YEAR from the FIRST DAY OF THE CALENDAR MONTH following:

the purchase,

the tax-exempt sale, and/or

the use if withdrawn from storage for own use”

HELP IS AVAILABLE

I found that the employees at the Sales and Fuel Tax Section of the Texas Comptroller’s office are helpful. They may be reached at 800-531-5441, extension 64297.

Thanks Bob!!!

Sent off today. Thanks Bob.

Bob, thanks for making this easy for us.!!!!

Reminded my BIL who forgets every year and told my son who just got his first beater boat to do this and explained it is important to save receipts showing gallons bought not just show prepay. And they HAVE asked me for backup before which I had and save til next years submission.

Does fuel for home generator count?

Yes, sir. Line #6 reads, "Fuel used in off-highway equipment (example: boat, tractor, mower, etc.)"

That would certainly include your generator. Just keep your receipts in case you are audited. I have been audited three times in 18 years.

Hope that helps. --Bob Maindele

Do you get the Federal tax back also? I think the state is around 19 cents a gallon.

Yes, you use Federal Form 4136 for this. I file it with my income taxes due in April.

If the boat is used in commercial fishing. https://www.irs.gov/instructions/i4136

The actual full list of eligible fuels is found here. Consider #2 and/or #4 depending on your situation. Bottom line, better to ask your CPA than "fish" for tax advice on the Texas Fishing Forum :-)


No. Type of Use
1 On a farm for farming purposes
2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use)
3 Export
4 In a boat engaged in commercial fishing
5 In certain intercity and local buses
6 In a qualified local bus
7 In a bus transporting students and employees of schools (school buses)
8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use)
9 In foreign trade
10 Certain helicopter and fixed-wing aircraft uses
11 Exclusive use by a qualified blood collector organization
12 In a highway vehicle owned by the United States that isn’t used on a highway
13 Exclusive use by a nonprofit educational organization
14 Exclusive use by a state, political subdivision of a state, or the District of Columbia
15 In an aircraft or vehicle owned by an aircraft museum
16 In military aircraft

As a CPA... the Form 4136 instructions clearly exclude personal use. I do file the State Refund every 12 months.

Line 1. Nontaxable Use of Gasoline

Claimant. The ultimate purchaser of the gasoline is the only person eligible to make this claim.

Allowable uses. A claim can’t be made for personal use of any fuel on line 1. Also, for lines 1a and 1c, a claim can’t be made for any use in a motorboat, other than commercial fishing.