Nonprofit Motor Fuels Tax Information

Taxable Purchases 

Article 36C of the North Carolina Revenue Law imposes a tax on motor fuel to provide revenue for the State's transportation needs and for the other purposes listed in Part 7 of the Article. The tax is collected from the supplier or importer of the fuel because this method is the most efficient way to collect the tax. However, the tax is designed to be paid ultimately by the person who consumes the fuel. The tax becomes a part of the cost of the fuel and is consequently paid by those who subsequently purchase and consume the fuel. Under the provisions of G.S. 105-449.106, certain nonprofit organizations that purchase and use motor fuel may receive a quarterly refund for the excise tax paid during the preceding quarter at a rate equal to the tax rate in effect under G.S. 105-449.80 for the time period for which the refund is claimed, less one cent per gallon. The following entities may receive a refund under this section: 

• A private, nonprofit organization that transports passengers under contract with or at the express designation of a unit of local government. 
• A volunteer fire department. 
• A volunteer rescue squad.
• A sheltered workshop recognized by the Department of Health and Human 
  Services. 

An application for a refund allowed under this section must be signed by the chief executive officer of the entity. The chief executive officer of a nonprofit organization is the president of the organization or another officer of the organization designated in the charter or bylaws of the organization. 

Refund Provisions

A nonprofit institution or organization eligible for a refund of excise taxes under the provisions of G.S. 105-449.106 must complete Form GAS-1200, Motor Fuels Claim for Refund Nonprofit Organizations to request a refund. All refund applications must be supported by records maintained in accordance with 17 NCAC 12B .0413 and any additional records identified in Form GAS-1200 Instructions.
An applicant must submit all the following items with its initial application for refund: 

• A copy of its corporate charter.
• A copy of its bylaws.
• If the person who signed the return was not the chief executive officer, a copy of 
  the minutes substantiating the person’s authority to sign the application for 
  refund.
• If applicable, a copy of the qualifying contract with a governmental entity.
• Copies of receipts or invoices for motor fuel purchased.

Only taxes paid by the claimant during the period for which the claim for refund is filed may be included in the claim. 

An application for a quarterly refund of excise tax is due by the last day of the month following the end of the calendar quarter for which the refund is claimed. The claim for refund of excise taxes paid during the first quarter (January 1 through March 31) is due to be filed by April 30. The claim for refund for the second quarter (April 1 through June 30) is due to be filed by July 31. The claim for refund for the third quarter (July 1 through September 30) is due to be filed by October 31. The claim for refund for the fourth quarter (October 1 through December 31) is due to be filed by January 31 of the following year.

An application for refund filed more than three years after the date the application is due is barred by statute under G.S. 105-449.108.

If you need assistance with completing and filing the application, you may call the Excise Tax Division at the toll-free number (877) 308-9092. Any written correspondence should be mailed to:

North Carolina Department of Revenue 
Excise Tax Division
3301 Terminal Drive, Suite 125 
Raleigh, NC 27604-3896