TAX NEWS - January 2010

Florida: Blender / Retailer of Alternative Fuel

Blenders – Blenders are taxpayers who are not otherwise licensed under Chapter 206, Florida Statutes, and who blend gasoline, gasohol, diesel, or aviation fuel with tax-free or partially untaxed products for personal use in a vehicle, machine, vessel, or aircraft.

Note: Licensed blenders cannot purchase motor fuel, undyed diesel, or aviation fuels tax-free. Blenders may not sell fuel products. Blenders may purchase, without tax or at reduced rates, fuels that can be purchased tax-free without a fuel license.

Examples of blending include:

- Mixing alcohol products (such as ethanol) with gasoline to create gasohol.
- Mixing undyed kerosene with undyed diesel fuel to increase the volume of diesel fuel.
- Mixing waste oil products with diesel fuel to increase the volume of diesel fuel.
- Mixing or adding any product that increases the volume of existing highway fuel.
- Any product created through blending or use upon which fuel taxes were not previously paid.

Retailers of Alternative Fuel - Retailers of alternative fuel (natural gas, propane, etc.) report and pay tax on sales of alternative fuel to customers filling a non-Florida registered motor vehicle.

Licensed wholesalers and terminal suppliers do not need a blender's license to convert or blend an untaxed product to or with a taxable product to propel a vehicle, vessel, machine, or aircraft.


Filing and Paying Taxes

Blenders and retailers of alternative fuel must pay tax and file a Blender/Retailer of Alternative Fuel Tax Return (DR-309635) electronically. Florida law imposes a $5,000 penalty for each month a taxpayer files a paper return.

You must enroll for e-Services before you can file and pay electronically. Find out more about e-Services requirements and options. Once you are enrolled, you may file and pay electronically.

The Department must receive a return by the 20th day of the month following the collection period. Download Instructions for Filing Blender/Retailer of Alternative Fuel Tax Return (Form DR-309635N). Taxpayers who pay electronically can download a payment due date calendar (Form DR-659).


Tips for Electronic Filing

Manifest – Keyed and imported data will be reviewed for filing errors. Errors will be identified as a critical error or a warning message. You must correct critical errors before you can file your return. Warning messages will not prevent you from filing a return, but you should correct them before submitting your next return. View a list of error/warning messages and codes for blenders and retailers of alternative fuel.