Effective July 1st, 2014 the Petroleum Activity Tax (PATax) goes into effect, in part, replacing the Commercial Activity Tax (CATax) on Motor Fuel Sales. The responsibility to pay the PATax falls on the first entity to make a sale in Ohio; usually the refiner, at the “rack”. The PATax can then be passed on to other customers in the same fashion as the Federal Motor Fuel Excise Tax.
While MIRA cannot speak for accountants or the Ohio Department of Taxation, we do want you to know some factors to consider because of the transition from CATax to PATax on motor fuel.
Your bookkeeping system must be able to distinguish and separate motor fuel dollar sales from dollar sales other than motor fuel, since taxation policies are different for each of these two categories. After July 1st, 2014 the CATax does not apply to motor fuel sales.
It is presumed that the refiner will be adding the PATax to your invoice in the same manner as the Federal Motor Fuel Excise Tax is presently added to your invoice. The jobber will list and add the PATax on the invoice presented to the retailer. As a retailer you will still be responsible for the CATax on all other sales “other than motor fuel”.
If you have any questions you call Ed Weglarz at (800) 666-6623 or your accountant.