The Fuel Tax is paid by retail sellers of the following:
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Heating oil, propane, kerosene, and other dyed diesel fuel delivered in Vermont
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Natural gas
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Electricity
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Coal
Certain sales are not subject to the Fuel Tax. Please see the instructions for more details. The rate schedule is as follows:
| Fuel Type | Rate |
|---|---|
| Heating oil, propane, kerosene, and other dyed diesel fuel delivered in Vermont | $0.02/gallon |
| Natural gas and coal | 0.75% |
| Electricity | 0.5% |
For natural gas, coal, and electricity, the tax is computed on the retail sale price of the fuel. The Fuel Tax is set to expire on June 30, 2024. There is an additional petroleum distributor licensing fee for heating oil, kerosene, and other dyed fuel sold in the state. This licensing fee will terminate on April 1, 2031.
How to File
Online: Taxpayers may file returns and pay tax due using myVTax, our free, secure, online filing site. Information regarding the retailer election can be found here.
Paper Returns: If you cannot file and pay through myVTax, you may still use the paper forms.
Other Reports
The Fuel Tax may be itemized on a delivery ticket, invoice, or statement. If a fuel dealer chooses to itemize, the invoice must include a statement that says the tax is “for support of Vermont’s Low Income Home Weatherization Program.” 33 V.S.A. § 2503(b).