Ohio Department of Taxation Information Release

XT 2005-01 - Excise and Motor Fuel Tax Division Information Release – Proper Reporting Of Biodiesels (Including Soy Oil And Soy Diesels) - May 16, 2005

Biodiesel is defined as a clean burning fuel derived from vegetable oils and animal fats that can be substituted in various increments for petroleum based diesel fuels.

Clear biodiesels or clear biodiesel blends will be considered as product 160 – clear diesel.

Filing of Tax Return Schedules

Ohio licensed motor fuel dealers should report clear biodiesels or clear biodiesel blends as product 160.  Dyed biodiesels will be reported as either product 227 – low sulfur dyed or product 226 – high sulfur dyed based on the sulfur content.

Report clear biodiesels or clear biodiesel blends on the appropriate receipt schedule as product 160.  Disbursements of clear biodiesels or clear biodiesel blends are to be reported on the appropriate disbursement schedule for product 160.

Blending of Biodiesels

 

If clear biodiesel fuel is blended with low sulfur dyed (product 227), or high sulfur dyed (product 226), it will be necessary to "book adjust" the biodiesel from product 160.  The disbursement Schedule 6 for product 160 is to include a "BA to Product ____" with the actual gallons being blended.  The receipt Schedule 2 for the product receiving or being blended with the clear biodiesel is to include a "BA from Product 160," with the same biodiesel gallons as listed on the BA from Schedule 6.

Clear Kerosene (product 142) blended with biodiesel (product 160) is to be reported as product 160.

Once the product is correctly "book adjusted," it can then be listed on the correct disbursement schedule for that product type.

Reporting of Inventory

Clear biodiesels are to be included on the clear diesel recap - Recap 2D.   Clear biodiesels blended with dyed low sulfur diesel (product 227) is to be inventoried on the Recap 2B and clear biodiesels blended with dyed high sulfur diesel (product 226) is to be included with the inventory gallons listed on Recap 2G. 

If you have any questions, please contact us at:

Ohio Department of Taxation

Motor Fuel Unit

P.O. Box 530

Columbus, Ohio  43216-0530
Telephone:  614-466-3503
Fax:  614-752-8644