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Local Government User

Qualified municipalities, counties, and school districts are entitled to a refund of the taxes paid on diesel and motor fuel. The refund must be used for transportation expenses.

Counties or municipalities that use fuel for highway use as a mass transit system provider and as a local government user must have separate licenses for each function and file separate returns.

Filing for Refunds and Paying Taxes

Local government users may file electronically using Revenue's secure Internet site. Before you can file electronically, you must enroll in our e-Services program. Taxpayers who report and pay tax electronically can download a payment due date calendar (Form DR-659).

Revenue encourages taxpayers to file electronically; however, you may file a Local Government User Fuel Tax Return (Form DR-309634). The Department must receive a return by the 20th day of the month following the collection period. Licensed local government users must use this form monthly to report acquisitions, inventory, and usage. The DR-309634 is also used to report fuel used on the highway, and to pay tax for the use of dyed diesel on the highway. You can download Instructions for Filing a Local Government User Fuel Tax Return (Form DR-309634N).

If you paid tax of $20,000 or more in the prior state fiscal year, you must pay taxes electronically.

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