Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 50 - Motor Fuel Tax
Part 2 - Manufactured Biodiesel Fuel (280-RICR-20-50-2)
Section 280-RICR-20-50-2.7 - EXAMPLES

Universal Citation: 280 RI Code of Rules 20 50 2.7

Current through September 18, 2024

A. Only the biodiesel percentage of the blend with petroleum diesel is exempt from motor fuel tax.

1. Example 1
a. A licensed distributor blends 200 gallons of biodiesel fuel (which is exempt from motor fuel tax) with 800 gallons of petroleum diesel (subject to motor fuel tax). The tax on this blended product is calculated as follows:
(1) 200 gallons of biodiesel / 1,000 total gallons (200 + 800) = 20% (B20)

(2) 1,000 gallons x .80 (80% is the taxable percentage of a B20 blend) = 800 gallons X $0.32 (the current motor fuel tax rate).

2. Example 2
a. A licensed distributor blends 200 gallons of B20 (only 20% of this blend is biodiesel fuel and is exempt from motor fuel tax) with 800 gallons of petroleum diesel (which is subject to motor fuel tax). The tax on the blended product is calculated as follows:
(1) 200 gallons of B20 = 40 gallons (200 x .20 = 40) which is exempt from the motor fuel tax.

(2) 160 gallons of this blend of product is petroleum diesel and subject to motor fuel tax

(3) 800 gallons of petroleum diesel fuel to be blended with the B20 blend above is subject to motor fuel tax (160 gallons + 800 gallons = 960 gallons subject to motor fuel tax).

(4) 40 gallons biodiesel / 1,000 total gallons = B4

(5) 1,000 gallons x .96 (96% is the taxable percentage of a B4 blend) = 960 gallons X .32 (the current motor fuel tax rate).

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