Motor fuels tax

Oklahoma levies excise taxes on gasoline and diesel of $0.20 per gallon. HB 1010xx in 2018 raised the fuel tax on gasoline by $0.03 per gallon and on diesel by $0.06. Fuel used by governments and Indian tribes is exempt and farm users may have the tax refunded. The general sales tax does not apply to gasoline. Tribes may compact with the state to receive part of the fuel tax collections.

This tax is collected by wholesale fuel vendors and paid to the Oklahoma Tax Commission. The tax then is included in the price paid at the pump. Nearly two-thirds of the amount collected goes to the State Transportation Fund for appropriation to the Oklahoma Department of Transportation. About one-third goes to county governments for roads and bridges. Small amounts are restricted for other forms of transportation. The additional fuel taxes levied under HB 1010xx in 2018 went to the General Revenue Fund in FY 2019 and then to the ROADS Fund beginning in FY 2020. Unlike many states, local governments in Oklahoma may not levy their own gas tax.

The state collected $366.7 million from the gasoline tax and $194.1 million from the diesel tax in FY 2023; together, they accounted for 4.2 percent of state tax collections and were the seventh largest revenue source after the individual income tax, sales tax, gross production tax, corporate income tax, use tax, and motor vehicle tax.