Motor Fuels Tax Minute, Episode 49: NORA Fee

In this week’s episode of Motor Fuels Tax Minute, our hosts talk about the NORA fee.

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Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 49

00:00:00
Leanne: Welcome to Weaver’s Motor Fuel Tax Minute, the vlog where we talk all things motor fuel. On this episode, Kelly will be talking a little bit about the NORA fee. Thank you to the viewer who suggested this topic and hopefully you’ve already received your swag.

00:00:14
Kelly: The NORA fee is an assessment on all dyed no. 1 distillate and all no. 2 distillate, no matter what the sulfur content is. The fee is only due on fuel that’s used for oil heat. That is defined in the law as being used for non-industrial commercial or residential space or hot water heating. So that means it excludes fuel that’s used for vessels, railroads, military, farmers, etc.

What’s interesting about the fee is NORA allowed states to choose whether or not they participate. If a state chooses to participate, then up to 85% of the funds derived from that state will be returned to the state for technical training and consumer education.

Also, there are exempt users. There’s a list on NORA’s website called the exclusionary list, and those are wholesalers who transport the product between markets, either by pipeline or barge, and therefore they’re considered prime wholesalers, and they are exempt from the fee.

00:01:14
Emilda: That’s a lot of good information there, Kelly. I was not aware of that. It sounds like it’s something that is a fee that’s upon state and local governments. So, it sounds like something that you have to register for or voluntarily disclose. It doesn’t sound like it’s fully mandated. Is that correct?

00:01:37
Kelly: It’s up to the state whether or not they want to mandate it, and NORA provides a report that if you are subject to the fee or required to be registered, you will complete the report and send it in.

00:01:49
Emilda: That’s great. Well, thank you for that information.

This wraps up our Motor Fuels Tax Minute for the week. Thank you.