Last Minute Spending Bill Reinstates OSLT for 2018
The Oil Spill Liability Tax (OSLT) is an excise tax on crude oil products, like natural gasoline used as denaturant for fuel ethanol.
The tax had expired at the end of 2017. However, the spending bill passed on February 9 to end the temporary shutdown of the federal government included a provision to reinstate the oil spill tax.
Section 40416 of HR 1892 reinstates the OSLT effective March 1, 2018. It sets a new expiration date of December 31, 2018.
The OSLT is now in effect from 3/1/18-12/31/18.
This bill did not include a change to the rate at which the excise tax is imposed. The rate had increased in 2017 to $0.09 per barrel, which is equivalent to $0.00214 per gallon of natural gasoline.
If you’re an ethanol producer or another entity wondering how this impacts your business, send me a message (firstname.lastname@example.org) or dial my phone direct (320-441-5538).