Administrative Procedure

Administrative Procedure AP 113: Jet Fuel Tax

Date: 01/31/2019
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Introduction: The Jet Fuel Tax is a local option tax enacted by a city or town and collected by DOR. The money is not part of the general fund, but is remitted by DOR directly to the taxing city or town. See 830 CMR 64J.4.1.

The following cities and towns have enacted the jet fuel tax:

Municipality Location Code

Bedford

023
Boston 035
Concord 067
Lexington 155
Lincoln 157
Mansfield 167
Marshfield 171
Norwood 220
Worcester 348

Applications for Licenses: Suppliers and user‑sellers of jet fuel must submit license application Form JFT-1 (no fee) initially and renew by each January 1st. Suppliers must be bonded up to three times their average monthly tax with a minimum bond of $10,000. User‑sellers are not generally required to be bonded. See 830 CMR 64J.4.1(4). All returns must be filed and outstanding taxes must be paid in full before a license will be issued.

Filing Requirements: All licensed suppliers must file Form JFT-4S and all licensed user‑sellers must file Form JFT-4U on or before the 20th day of each month following the month of sale or use. Returns must be filed even if no tax is due. Businesses with certain combined tax liabilities of $5,000.00 or more, must file electronically through MassTaxConnect. See TIR 16-9.

If a new city or town enacts the jet fuel tax, the Excises Tax Unit will notify suppliers and user-sellers of record.

Payment: Suppliers with total annual payments in excess of $5,000.00 must make payments electronically through MassTaxConnect. Failure to make electronic payments may result in a penalty under G.L. c. 62C, § 33(g). For those not required to make electronic payments, the payment must be included with the monthly return. The check or money order for the exact amount should be made payable to the Commonwealth of Massachusetts

Estimated Tax Payments: None.

Rate of Tax: The rate of tax is 5% of the average price per gallon (as determined by the Commissioner) computed to the nearest 10th of a cent per gallon but no less than $.05/gallon. All suppliers and user-sellers of record will be notified of the rate approximately four (4) weeks before the beginning of the calendar quarter. The current tax rate is also published on the DOR website (www.mass.gov/dor) in the Fuels Excise Information section.

Exemptions: The following sales or uses are either exempt from jet fuel tax or may entitle the purchaser to a refund: (1) sales or use of bonded fuel; (2) sold to or for use by the Federal Government; (3) for sale, resale or use in a city or town which has not adopted the tax; (4) for sale to a licensed supplier; or (5) for sale or use in other than jet aircraft operation. See "Refunds" below. In certain instances, sales or use tax may nonetheless apply.

Interest and Penalties: If Aircraft (Jet) Fuel Supplier Tax Returns are not properly filed, interest and penalties may be assessed. As of January 1, 1993, the Massachusetts interest rate is based on the federal short‑term rate plus four percentage points, compounded daily. G.L. c. 62C, § 32, as amended. For more information on calculation of interest, see Regulation 830 CMR 62C.33.1, TIR 92-6 and TIR quarterly rate updates. The penalty for late filing is 1%/month or fraction thereof, not to exceed 25% of the amount due; the penalty for late payment is 1%/month for each month or fraction thereof, not to exceed 25% of the amount due.

See TIR 99-18 regarding waiver of G.L. c. 62C, § 33(c) late‑pay penalties and suspension or involuntary collection activities under G.L. c. 62C, § 32(e) when the taxpayer disputes the assessment (or any portion thereof) administratively within DOR or with the Appellate Tax Board or Probate Court.

Extensions of Time to File: For good cause, the Commissioner may grant a reasonable extension of time for filing a return. Requests must be in writing to the address below. Failure to pay 80% of the tax required to be paid on or before the due date for payment of tax will void any extension of time to file and the return will be subject to penalty as a late return. See 830 CMR 62C.19.1.

Abatements: An abatement is a reduction of a tax or penalty assessed by DOR. See 830 CMR 62C.37.1. Taxpayers seeking to obtain an abatement of a tax or penalty that has been assessed by DOR should use MassTaxConnect and follow the instructions provided for disputing a tax or penalty assessed by DOR. Alternatively, taxpayers may file a paper Form ABT, Application for Abatement. However, abatement applications filed electronically through MassTaxConnect will be processed faster than paper applications. Note that taxpayers that are required to file their taxes electronically must also file abatement requests electronically. See AP 627, Applications for Abatement for more details.

 Amended returns: Taxpayers often discover after filing a return that information was omitted or a mistake was made. To adjust information reported on a prior return, a taxpayer must file an amended return with DOR. An amended return must be filed to increase previously reported tax; to decrease previously reported tax; to report an increase to tax resulting from a federal or state change; to report a decrease to tax resulting from a federal or state change and to make amendments that have no net effect on tax. Most taxpayers are required to amend their returns electronically using MassTaxConnect. Taxpayers filing amended returns on paper will manually complete the same form as used for the original or prior amended return, whichever is filed later, and check the box indicating that the return is an amended return. See AP 605, Amending Tax Returns for more details.

Refunds: Refund applications must be submitted on Form JFT-9 within two years of date of purchase. Copies of sales receipts showing tax paid must be submitted with the form to the Excises Unit, Jet Fuel Tax Section.

 Interest: Refund payments are not subject to interest.

Changing Information or Status: Changes should be submitted electronically through MassTaxConnect. A taxpayer who does not have access to MassTaxConnect may submit changes in writing to the address given below.

For more information, contact:

Massachusetts Department of Revenue
Excises Unit, Jet Fuel Tax Section
P.O. Box 7012
Boston, MA 02204
(617) 887-5070

Table of Contents

G.L. c. 62C, §§ 32, 32(e), 33(c), 33(g)
G.L. c. 64J
830 CMR 62C.19.1
830 CMR 62C.33.1
830 CMR 62C.37.1
830 CMR 64J.4.1
830 CMR 64J.4.1(4)
TIR 92-6
TIR 99-18
TIR 16-9
AP 605, Amending Tax Returns
AP 627, Applications for Abatement
Form ABT, Application for Abatement
Form JFT-1, License Application for User-Seller/Supplier of Aircraft (Jet) Fuel
Form JFT-4S, Aircraft (Jet) Fuel Supplier Tax Return
Form JFT-4U, Aircraft (Jet) Fuel User Tax Return
Form JFT-9, Aircraft (Jet) Fuel Refund Application

Referenced Sources:
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