Form 86 Instructions

Who Must File. Every motor fuels retailer who sells compressed fuel for use in a motor vehicle or is capable of dispensing compressed fuel into a motor vehicle is required to be licensed and file a Nebraska Compressed Fuel Retailer Return, Form 86. 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.

When to File. This return 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.

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.

Tax Rate. Nebraska motor fuels tax is subject to change each January 1 and July 1. Tax rates can be found on the website.

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.

Specific Instructions

Columns 1, 2, and 3. Column 1 is for propane. Column 2 is for compressed natural gas (CNG). Column 3 is for butane, liquid natural gas, and all other combustible gases and liquids suitable for use in motor vehicles. This does not include motor vehicle fuels (gasoline, gasohol, or ethanol) or diesel fuel.

Line 1. Enter the total gallons of fuel sold in Nebraska for all purposes. If this data is not available, enter zero.

Line 2. Enter the total gallons of fuel sold for use in a licensed motor vehicle, both taxed and untaxed.

Line 3. Enter the total gallons of untaxed fuel sold to the federal government. Retain U.S. Tax Exemption Certificate, Form 1094, or other evidence of sale to the federal government with your records.

Line 4. Enter the total gallons of untaxed fuel sold on a Nebraska Indian Reservation to a Native American residing on a Nebraska Indian Reservation.

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).