Users - Nontaxable Uses - Filing Claims for Refund

If you pay tax on diesel fuel and use it in a nontaxable way, you may file a claim for refund using form BOE-770-DU, Diesel Fuel Claim for Refund on Nontaxable Uses.

Before you file

If you are not registered to file claims for refund for nontaxable uses, you must do both of the following before you file your first claim:

Filing Frequency

You must file by whichever deadline below is later:

  • Within three years of the date you bought the fuel, or
  • If the tax was not invoiced at the time of purchase, within six months of the date you received an invoice for the tax

You may file a claim with us either:

  • Once a year for any amount or
  • At the end of any calendar quarter, if your claim is for at least $750

Exceptions

  • Farmers and Exempt Bus Operators may not file claims for refund for tax-paid fuel used in farming or an exempt bus operation. However, if you are a Farmer or an Exempt Bus Operator you may file claims for refund for other off-highway uses.
  • Licensed Diesel Fuel Suppliers may claim refunds for tax-paid fuel used in a nontaxable way on their tax returns, form BOE-501-DD.
  • Ultimate Vendors and Exempt Sellers may claim refunds on their regular claim for refund form BOE-770-DV, Diesel Fuel Ultimate Vendor Report/Claim for Refund or BOE-770-DZ, Claim for Refund on Nontaxable Sales and Exports of Diesel Fuel.

Common nontaxable uses

The most common nontaxable uses of tax-paid diesel fuel include operating:

  • Stationary equipment other than vehicles
  • Vessels or watercraft
  • Construction equipment off-highway when it is exempt from DMV registration
  • Other vehicles off-highway
  • Vehicles on highways under the jurisdiction of the U.S. Department of Agriculture (for example, National Forest roads)
  • Power takeoff (PTO) equipment. A PTO is a driveshaft, usually on a tractor or truck, used to provide power to an attachment or separate machine that does not propel the vehicle on the highway

Percentage of off-highway use

You should document the percentage of off-highway use to back up your claim for refund.

  • Vehicles used on-highway and off-highway: You should do periodic tests to determine whether formulas you use to determine your off-highway use are accurate. See Regulation 1432, Other Nontaxable Uses of Diesel Fuel in a Motor Vehicle. You may want to Contact Us for more information.
  • PTO equipment:  You should also do periodic tests to determine whether formulas you use to determine your PTO use are accurate. You may want to Contact Us for more information.
  • Important Note: There are no authorized standard percentages that can be used to compute the fuel tax refund attributable to vehicles with PTO units.

Diesel User Frequently Asked Questions (FAQs)