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. There is an additional petroleum distributor licensing fee for heating oil, kerosene, and other dyed fuel sold in the state.
When Fuel Retailers Act as Contractors
Retailers have different Sales and Use Tax responsibilities than contractors. If you are a retailer who contracts to install heating equipment or other materials, our guidance for retailer election may apply to you.
How to File
Online: Taxpayers may file returns and pay tax due using myVTax, our free, secure, online filing site.
Paper Returns: If you cannot file and pay through myVTax, you may still use the paper form, FGR-615, Fuel Tax and Petroleum Distributor Licensing Fee Return.
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).