Federal Excise Tax Motor Fuel Refund Procedures
Kansas State University is exempt from Federal Excise Tax on motor fuels. For bulk purchases, please contact the Division of Financial Services to find out the exemption status of a particular vendor. All requests for exemption status are to be filed by the Division of Financial Services.
Since suppliers are not required to exempt this tax, the Financial Services office will submit a claim for a refund. (This includes payments using FIS expenditure objects E3510. Aviation fuel, dyed diesel and propane are not taxed). Please note that all motor fuels purchased from the Facilities Storeroom are net of the tax.
In order for the Division of Financial Services to request a refund, departments should use their vehicle expense BPC card for purchases of motor fuel from external vendors. When completing the BPC payment document in eForms, fill in the accounting detail and number of gallons purchased on the “Summary Transaction Log” and we will extract the necessary information for the refund. This eliminates the need for any documentation to be sent to the Division of Financial Services Office. If for some reason you pay the vendor directly, you must send a copy of the APV and invoice showing the number of gallons, type of fuel, and amount of tax financialreport@ksu.edu, in order for that purchase to be included in the refund claim.
Effective January 2007, when using a vehicle expense BPC card, a credit for the calculated amount of the Federal Excise Tax refund is recorded to the same Project, Source, Organization and Object originally used to pay for the motor fuel. This occurs during the month end process.
If an APV was used to pay for motor fuel and the supporting documentation required above was received, a credit for the calculated amount of the Federal Excise Tax refund will be recorded quarterly to the same Project, Source, Organization and Object that was charged for the initial fuel purchase.
