Fuel Tax Law and Legal Definition

A fuel tax is a sales tax on fuel. Any person who purchases fuel for his/her automobile, home heating, or any other purpose, are charged with a fee beyond the cost of the fuel itself. The extra amount paid includes fuel tax. A fuel tax is also known as petrol tax, gasoline tax, gas tax, or fuel duty.

The amount to be paid as tax depends on the purpose for which the fuel is consumed. Generally, the highest taxes are for transportation purposes, while those for home functions are generally lower. However, fuel taxes rates vary from state to state.

The following is an example of a state law (Florida) defining the term:

Pursuant to Fla. Stat. § 206.01, ‘Fuel tax’ means and includes any tax imposed by the laws of the state upon or measured by the sale, use, distribution, or consumption of motor fuel.