09 RM 019
Date: June 26, 2009
Author: Kelley Shepp, Associate Research Analyst
Re: Taxes Levied on Railroad Fuel
1. Which states levy taxes on railroad fuel?
[Caveat: This list should not be interpreted as comprehensive as it may be possible that other states have
similar language that LSO research staff was unable to identify.]
1. From information provided by the National Conference of State Legislatures, LSO research staff
was able to locate three states that levy taxes on railroad fuel. The states are:
∗ Florida: Motor fuel used by railroad locomotives or vessels to transport persons or property in
interstate or foreign commerce is exempt from the fuel tax but subject to the sales tax on a
prorated basis. (Florida Statutes § 212.08(4));
∗ Maine: All but 1¢ of the gasoline tax paid on fuel used in commercial motor boats, in tractors
used for agricultural purposes and not operating on the public highways, in vehicles owned or
operated by railroad companies while operating on rails or tracks, in stationary engines, in the
mechanical or industrial arts, or for registered vehicles operating off the highways of the state is
refunded. (36 Maine Revised Statutes Annotated Sec. 2908). All but 1¢ of the special fuel tax is
refunded if the fuel is used in motor boats, tractors used for agricultural purposes not operating
on public ways, or in such vehicles as run only on rails or tracks, in stationary engines, in the
mechanical or industrial vehicles operated on the highways of the state (36 Maine Revised
Statutes Annotated Sec. 3218)); and
∗ Vermont: On diesel fuel, a 1¢ per gallon petroleum distributor licensing fee imposed for deposit
into the petroleum cleanup fund applies to fuel sold or delivered by distributors. A tax is also
imposed on each gallon of railroad fuel used in the state. (23 Vermont Statutes Annotated Sec.
3003). Also, until April 1, 2011 additional fees of 1¢ per gallon petroleum distributor licensing
fee and 3¢ per gallon of railroad fuel will apply. (10 Vermont Statutes Annotated Sec. 1942 and
23 Vermont Statutes Annotated Sec. 3003).
If you need anything further, please contact LSO Research at 777-7881.
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