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Illinois Department of Revenue
PST-1 Instructions
General Information
What is prepaid sales tax? Can I file this return and pay the tax due electronically?
“Prepaid sales tax” is a tax that you (a distributor of motor fuel) Yes, you can use MyTax Illinois on our website at tax.illinois.gov
must collect on the motor fuel you sell for resale to a retailer who to file your Form PST-1. MyTax Illinois also allows for electronic
is not also an Illinois licensed motor fuel distributor or a supplier of payment of any tax due.
diesel and dieselhol. What is motor fuel?
What rate of tax should I collect? For the purposes of this form, “motor fuel” means all volatile and
Tax is due on a per gallon basis and is subject to change inflammable liquids (e.g., gasoline, gasohol, diesel fuel) that are
January 1 and July 1 of each year. produced, blended, or compounded for the purpose of, or which
The prepaid sales tax rates will be calculated as follows: can be used for, operating motor vehicles.
• For motor fuel, the rate will be calculated by multiplying the Note: Aviation fuel and liquid propane gas are not subject to
average of the previous six months selling price per gallon by the prepayment requirement found in the Retailers’ Occupation
6.25 percent (.0625). Tax Act. You should not report the sales of these products on
• For biodiesel blends with no less than 1 percent and no Form PST-1.
more than 10 percent biodiesel, the rate will be calculated by Are there any types of fuel for which I am not required
multiplying the established motor fuel rate by 80 percent. to remit prepaid sales tax?
Rates are published on our website at tax.illinois.gov at least Yes. The following types of motor fuel are exempt from sales tax
20 days prior to January 1 and July 1 each year. and are therefore not subject to prepaid sales tax requirements:
Note: Effective July 1, 2017, gasohol (i.e., motor fuel containing • Majority blended ethanol fuel — “Majority blended ethanol
no more than 90 percent gasoline and at least 10 percent fuel” is motor fuel that contains not less than 70 percent and
denatured ethanol) is taxable at the rate established for motor no more than 90 percent denatured ethanol, and not less
fuel. Prior to July 1, 2017, gasohol was taxed the same as than 10 percent and no more than 30 percent gasoline.
biodiesel blends with no less than 1 percent and no more than • 100 percent biodiesel — “Biodiesel” is a renewable diesel
10 percent biodiesel. fuel derived from biomass (i.e., a non-fossil organic material
Who must file Form PST-1? such as soybean oil, other vegetable oils, or ethanol, that has
If you are engaged in the business of selling motor fuel to an intrinsic chemical energy content) that is intended for use
retailers, you must file Form PST-1 and pay the tax you have in diesel engines.
collected. You must attach to your Form PST-1 a copy of • Qualifying biodiesel fuel blends — “Biodiesel blend” is a
Form PST-2, Statement of Tax Paid, for each retail sale made blend of biodiesel and petroleum-based diesel fuel in which
during the liability period. the final product contains no less than 1 percent and no
What is Form PST-2? more than 99 percent biodiesel. Note: Only biodiesel blends
Form PST-2 is a four-part form, which allows the department with more than 10 percent but no more than 99 percent
to verify that the information reported by retailers and resellers biodiesel are exempt from prepaid sales tax requirements.
matches. The retailer is required to file Copy A with Form ST-1 If the biodiesel blend is at least 1 percent but no more than
and keep Copy B as a file copy. The reseller is required to file 10 percent biodiesel, you must collect and report prepaid
Copy C with Form PST-1 and keep Copy D as a file copy. sales tax.
When must I file Form PST-1? What if I need help?
You must file this return along with any payment you owe, on or Visit our website attax.illinois.gov or call weekdays between
before the 20th day of the month following the end of the liability 8 a.m. and 5 p.m. at 1 800 732-8866 or 217 782-3336. Call
period. 1 800 544-5304, our TDD (telecommunications device for the
deaf).
Note: If the due date falls on a weekend or holiday, your return
and payment are due the next business day.
Specific Instructions
Step 1: Figure your gallonage information Line 2g - Enter the total gallons of majority blended ethanol fuel,
Line 1 - Enter the total number of gallons of motor fuel, including 100 percent biodiesel fuel, or biodiesel fuel blends (with more than
gasohol, you sold, delivered, or transferred during this period. 10 percent but no more than 99 percent biodiesel) that you sold.
Include deliveries that you made to your company-owned outlets. Line 2h - Enter the total gallons you sold to customers other than
Line 2e - If the organization is a retailer of motor fuel, you may not retailers. Include deliveries made to your company-owned (and
deduct the gallons sold. not leased) outlets. Do not include amounts reported on Lines 2a
Line 2f - Enter the number of gallons you sold to out-of-state through 2g.
retailers who take delivery in Illinois and certify that they will
always resell and deliver the fuel to their customers outside
Illinois.
PST-1 Instructions (R-07/17) Page 1 of 2
