Allied Oil is posting this information on the NJ PGRT to advise our customers of the details of the New Jersey’s recent fuel tax legislation.
It is our intention to update this posting as new information is made available.
2-17-2017 NJ PETROLEUM GROSS RECEIPTS TAX RATE INCREASE- UPDATE
The State of New Jersey has raised the NJ Petroleum Gross Receipts Tax (PGRT) by 12.85% of the surveyed average pre-tax price for fuel in the state as of 7-1-2016. This increase will be on top of the $0.0400 per gallon previously charged for the NJ PGRT.
For gasoline the increase to the PGRT will take place on Nov. 1st, raising the tax on gasoline by $0.2260 per gallon. This rate increase will be in addition to the $0.0400/gal NJGRT previously in effect. The NJ PGRT rate is structured to be adjustable, giving the state the option to change it as frequently as quarterly.
For resellers only, this increase will also be applied to ‘floor stocks’, fuel volumes held in inventory. Resellers will be required to- (1) take their inventory volume as of the close of the business on the day before the implementation, (2) report their inventory to the state within 45 days, and then (3) remit to the state the increased tax levied on their fuel in inventory by 2-1-2017. Tanks over 10,000 gallons are to exempt the first 400 gallons and similarly the first 200 gallons for smaller tanks. The floor tax is only to be applied to fuel resellers.
The increase on the PGRT for ‘clear’ highway diesel will been broken into 2 parts- applying 70% of the increase ($0.1590/gal.) on Jan. 1 2017, and then the remaining 30% of the increase (estimated at $0.0700/gal.) on Jul. 1 2017. Details are pending from the state Tax Dept. Stocks are expected to be ‘floor taxed’ at both implementation dates. This rate will also be adjusted as frequently as quarterly thereafter.
Additionally, on or after Jul. 1, 2017 the pre-existing $0.0400/gal PGRT rate will be raised to $0.0800/gal, effectively raising the tax an additional $0.0400/gal.
For resellers only, these increases will also be applied to ‘floor stocks’, fuel volumes held in inventory at the date of implementation. Resellers will be required to- (1) take their inventory volume as of the close of the first business day before the implementation, (2) report their inventory to the state within 45 days, and then (3) remit to the state the increased tax levied on their fuel in inventory by a date still to be specified. Tanks over 10,000 gallons are to exempt the first 400 gallons and similarly the first 200 gallons for smaller tanks.
OFF ROAD DIESEL & HEATING OIL
NJ PGRT will no longer apply to most uses of heating oil & off-road diesel (including- farm equipment, construction equipment, generators and most commercial fishing vessels). Residential heating oil uses will continue to be exempted.
OTHER PETROLEUM PRODUCTS
The law raises the tax on other petroleum products like lube oils to 7% from 2.75%
NJ PGRT TAX FORMS LINK
Diesel Inventory Report (PPT-D1-INV) 141 KB
Diesel Inventory Instructions 20 KB
Diesel Inventory Worksheet 36 KB
Diesel Floor Stock (PPT-D1-FS) 407 KB
Diesel Floor Stock (PPT-D1-FS) Instructions 27 KB
12-22-2016 UPDATE ON FLOOR TAX
There is a floor stocks tax payment due on all on road diesel fuel that is held in inventory for resale at the close of business (11:59pm) on December 31, 2016.
Holders of on road diesel inventory for resale are required to:
- Complete Form PPT-D1-INV (link below) indicating the volume of your inventory at close of business 12-31-2016
- Send completed form to NJ DIV TAXATION PO 189 Trenton NJ 08695-0189. Report is due no later than 1-31-2017
- Complete PPT-D1-FS (link below)
Send completed form to NJ DIV TAXATION Revenue Processing Center PO 2343 Trenton, NJ 08646-0243
Include a payment for the additional $0.159 due on diesel inventory
Payment is due no later than 6-1-2017
The State has announced that the increase to the NJ PGRT will be $0.159/gallon for on-road diesel fuel, effective January 1st, 2017.
They further announced that there will be no change to NJ PGRT tax on gasoline for the 1st quarter of 2017.
1- The NJ PGRT is a variable tax rate and will be subject to change quarterly. We will continue to post rate updates each quarter.
2- The diesel tax increase was scheduled to be phased in over 2017, with the balance of the increase slated to take effect 7-1-2017