North Dakota Fuel-Tax Refunds Available 

Consumers who use motor vehicle fuel in non-licensed equipment for agricultural, industrial, or governmental purposes may be eligible for a full refund of the 23-cent-per-gallon motor vehicle fuel tax they have paid. This offer aims to help offset the financial burden on businesses and services that rely on fuel for essential non-vehicle purposes, such as in farming equipment or other machinery that does not require licensing for road use.

In addition to agricultural and industrial operations, state and local government entities, including political subdivisions, are also eligible for a full refund for all motor vehicle fuel used for construction, reconstruction, and maintenance of roads and highways. This refund helps support the ongoing infrastructure work vital for public safety and community development.

Another key beneficiary of this refund program is emergency medical services (EMS). EMS operations can apply for a full refund on motor vehicle fuel and special fuel used in ambulances. This benefit extends to aviation fuel used in air ambulances, assisting medical organizations with their fuel-related expenses.

Additionally, consumers using undyed diesel in refrigeration units on trucks or trailers are eligible for a refund for the tax difference between undyed and dyed diesel. This supports industries that rely on refrigerated transportation for perishable goods, ensuring that they do not face an unnecessary tax burden on their fuel costs.

To apply for any of these refunds, taxpayers should visit the North Dakota Taxpayer Access Point (ND TAP) to submit their claims electronically. All required documentation must be uploaded for processing, and refunds can be received via check or direct deposit, making the process as convenient as possible.

How Fuel-Tax Credits Help Eligible Sectors

Fuel-tax credits provide critical financial relief to sectors that depend on fuel for specific, non-licensed applications. Here’s how these refunds benefit different groups:

1. Agricultural, Industrial, and Governmental Operations: Many industries, including agriculture and construction, use large amounts of fuel for equipment that doesn't require road licenses, such as tractors, harvesters, and road-building machinery. The ability to receive a full refund on fuel taxes paid for this non-licensed equipment allows businesses to reinvest those funds into their operations, reducing costs associated with fuel taxes. For agriculture, this is particularly important, as fuel expenses can be a significant part of operational costs during planting and harvest seasons.
2. State and Local Infrastructure Projects: Government entities are often engaged in large-scale infrastructure projects that require substantial fuel usage for construction, reconstruction, and road maintenance. The full refund on motor vehicle fuel used for these projects ensures that taxpayer dollars are maximized for public benefit rather than going toward additional fuel tax expenses. This refund helps keep costs down for public works projects, promoting more efficient use of funds.
3. Emergency Medical Services (EMS): EMS operations rely heavily on ambulances and air ambulances to provide life-saving services. The cost of fuel for these vehicles can be substantial, particularly given the high usage rates and long hours they operate. Fuel-tax credits help offset these costs, allowing EMS providers to allocate resources to other important needs, such as personnel, equipment, and training. By receiving refunds for both motor vehicle fuel and aviation fuel, EMS agencies can better manage their budgets while continuing to deliver critical emergency services.
4. Refrigerated Transportation: Industries involved in the transportation of perishable goods, such as food and pharmaceuticals, often rely on refrigeration units that run on diesel fuel. These refrigeration units are typically powered by undyed diesel, which is taxed at a higher rate than dyed diesel. By allowing consumers to claim a refund for the tax difference, this fuel-tax credit helps reduce the overall operating costs for businesses that need refrigerated transport, ultimately helping keep consumer prices stable.

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These credits allow taxpayers to allocate resources to other needs, whether for business growth, emergency response capabilities, or public infrastructure development.