Form 74 Instructions
Who Must File. Every person or governmental agency that incurs a motor fuels use tax liability must file Nebraska Motor Fuels Use Tax Return, Form 74, each quarter. A return is required for every tax period for which an entity is licensed even if there is no activity to report.
If the name, mailing address, or ownership of the licensee changes, notify the Motor Fuels Division.
Nebraska Government Entities Only. A motor fuels use tax liability is incurred when dyed diesel fuel is used in a licensed motor vehicle owned and operated by the State of Nebraska or any county, city, township, village, or political subdivision of the State of Nebraska.
Placement of dyed diesel in any licensed motor vehicle by other than a Nebraska government entity, subjects the registered owner to substantial penalties.
Blending Agents. A motor fuels use tax liability is incurred when blending agents are used in a licensed motor vehicle owned and operated by any person.
Blending agents are defined as kerosene, methanol, naphtha, and any other volatile, flammable, or combustible liquid suitable for use as a motor fuel (e.g., gasoline or diesel) blending agent or fuel expander. Blending agents do not include fuel additives, which are used to enhance engine performance or prevent fuel line freezing or clogging when placed directly into the supply tank of a motor vehicle in quantities of one quart or less.
Gains Resulting from Inventory/Sales Variance. A motor fuels use tax liability is incurred whenever there is a positive variance between quarterly fuel sales as determined by a change in inventory and quarterly fuel sales as determined from corresponding sales records.
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Determination of Sales Per Change in Inventory
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Beginning Inventory + Purchases - Ending Inventory
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Total fuel sales per sales records.
If the "Sales per Change in Inventory" exceed the "Sales per Sales Records," enter a zero by fuel type in the appropriate line 3 or 4.
When to File. This return is filed on a quarterly basis and is considered timely filed if sent electronically on or before the 20th day of the month following the tax period covered by this return. If the 20th falls on a Saturday, Sunday, or legal holiday, the return will be considered timely filed if transmitted on or before the next business day following the 20th. A return is required even if no tax is due.
Tax Rate. Nebraska motor fuels tax is subject to change each January 1 and July 1. Tax rates can be found on the website.
Penalty and Interest. A penalty of $50 will be assessed on returns filed within 10 days after the due date, and when tax is due and payment is received within 10 days after the due date. An additional penalty of $100 or ten percent of the tax, whichever is greater, will be assessed on returns filed more than 10 days after the due date, and when tax is due and payment is received more than 10 days after the due date.
Interest will be assessed on the unpaid tax at the statutory rate per year from the due date until payment is received.
Records. The records required to substantiate this return must be retained and available for at least three years, or five years if the required returns are not filed. Please retain a copy of this return for your records.
Taxpayer Assistance. For additional information, please contact the Motor Fuels Division, PO Box 98904, Lincoln, Nebraska 68509-8904, or call 402-471-5730 or toll free 800-554-FUEL (800-554-3835).