E85 and FlexFuel Taxation in PA
This is a reminder to all PA registered distributors and alternative fuels dealer-users that, per Title 75 (the PA Vehicle Code) Section 9002, the product known as E85 or FlexFuel is taxable at the Alternative Fuels Tax rate and remitted by an Alternative Fuels Tax Permit Holder at the dealer-user level, but only if the product is a minimum of 85% ethanol with 15% gasoline.
All other seasonal blends of this product (i.e. 51%-84% ethanol) are to be taxed at the Liquid Fuels (gasoline/gasohol) rate and remitted by PA Registered Distributors at the distributor level.
Referenced definition below:
"Alternative fuels." Natural gas, compressed natural gas (CNG), liquefied natural gas (LNG), liquid propane gas and liquefied petroleum gas (LPG), alcohols, gasoline-alcohol mixtures containing at least 85% alcohol by volume, hydrogen, hythane, electricity and any other fuel used to propel motor vehicles on the public highways which is not taxable as fuels or liquid fuels under this chapter.