Motor Fuel - Pierre: 605-773-4109; Rapid City: 605-394-3397; Sioux Falls: 605-367-5259
Motor Fuel involves assessing taxes on gasoline, ethanol blends, undyed diesel fuel, liquefied petroleum gas, aviation fuel, jet fuel, and compressed natural gas. South Dakota’s 8,000-mile network of roads and highways and its airport facilities and runways are essential to the state’s economy and its citizens’ quality of life. Through the taxation of fuels, the costs of creating and maintaining this transportation infrastructure are distributed proportionately to the individuals and businesses that use our transportation system.
2010 Legislative Changes
The 2010 South Dakota Legislature passed a bill to permit and regulate the blending of natural gasoline and ethyl alcohol and to provide for an Ethanol Broker’s license. House Bill 1033 was ultimately signed by Governor Rounds and will become law July 1, 2010.
The Department of Revenue, Division of Motor Vehicles would like to take this opportunity to make you aware of some of the changes that will take place in July as a result of House Bill 1033.
An “Ethanol Blend” is a blended motor fuel containing ethyl alcohol of at least 99% purity typically derived from agricultural products which is blended exclusively with a product commonly or commercially known or sold as gasoline.
An “Ethanol Broker” is any person who engages in the business of marketing ethyl alcohol produced by Ethanol Producers located in South Dakota. Please ensure that you pass this information on to your companies Brokers.
The blending of casinghead or natural gasoline is not permitted in an ethanol blend fuel product in quantities larger than required to denature the ethyl alcohol. Notwithstanding this prohibition, a natural gasoline blended product can be made by blending natural gasoline and ethyl alcohol. The natural gasoline blended product shall contain no more than 25% natural gasoline and shall contain no less than 75% ethyl alcohol. The natural gasoline blended product may only be further blended using gasoline.
Fuel Excise Tax
A fuel excise tax is imposed on ethyl alcohol sold by an Ethanol Producer, Supplier, Importer or Ethanol Broker. The tax imposed is $0.08 cents per gallon, plus a $0.02 cents per gallon tank inspection fee. These shall be remitted by the selling Ethanol Producer, Supplier, Importer, or Ethanol Broker.
No fuel excise tax is imposed on ethyl alcohol that is sold by an Ethanol Producer to a licensed Ethanol Broker or to a licensed Exporter for export to another state who is specifically licensed to export to that state.
Fuel excise will not be imposed by the Ethanol Broker when the sale is made to a licensed Exporter for export to another state. The Exporter must be specifically licensed to export to that state. Sales made to the U.S. Government or to other licensed Ethanol Brokers for resale are also tax-exempt.
Sales made to Suppliers for resale at a terminal located in this state are subject to the fuel excise tax.
South Dakota Department of Revenue
445 East Capitol Avenue
Pierre, SD 57501-3185
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