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INSTRUCTIONS                           STATE OF HAWAII—DEPARTMENT OF TAXATION 
FORM M-20A 
(REV. 7/2020)                    INSTRUCTIONS FOR FORM M-20A 
                    MONTHLY RETURN OF LIQUID FUEL TAX (STATE AND COUNTY) 
              AND ENVIRONMENTAL RESPONSE, ENERGY, AND FOOD SECURITY TAX
Changes You Should Note                         stantial energy security benefits or substan-    When to File
                                                tial environmental benefits.
Effective July 1, 2019, Maui County Reso-                                                        Form M-20A must be filed on or before the 
lution No. 19-100, created a new fuel tax       “Distributor” means:  (1) Every person           20th day of each month, showing the fuel 
category of Biodiesel Blend containing less     who  refines, manufactures,  produces,  or       sold or used during the preceding calendar 
than 100% of Biodiesel.                         compounds liquid  fuel or fossil fuel in the     month. If the due date falls on a Saturday, 
                                                State and sells or uses the same therein;        Sunday, or legal holiday, file by the next 
Effective September 1, 2019, taxpayers are      (2) Every person who imports or causes to        regular workday.
required to file Form M-20A electronically.     be imported into the State any liquid fuel or    The official U.S. Post Office cancellation 
Act 66, Session Laws Hawaii 2018, amend-        fossil fuel and sells it therein, whether in the mark will be considered primary evidence 
ed section 231-8.5, HRS to enable the De-       original packages or containers in which it      of the date of filing of tax documents and 
partment of Taxation (Department) to re-        is imported or otherwise than in the original    payments. Hawaii has adopted the Internal 
quire certain taxpayers to file electronically. packages or containers, or who imports any       Revenue Code provision to allow docu-
For more information, see Department of         liquid fuel or fossil fuel for the person’s own  ments and payments delivered by a desig-
Taxation Announcement No. 2019-02.              use in the State; (3) Every person who ac-       nated private delivery service to qualify for 
Effective July 1, 2020, Maui County Resolu-     quires liquid fuel or fossil fuel from a person  the “timely mailing treated as timely filing/
tion No. 20-82, increases the Maui County       not a licensed distributor and sells or uses     paying rule.” The Department will conform 
liquid fuel and diesel oil tax rates.           it, whether in the original package or con-      to the Internal Revenue Service listing of 
                                                tainer in which it was imported (if imported)    designated  private delivery  services  and 
General Instructions                            or otherwise than in the original package        type of delivery services qualifying for the 
Form M-20A is used to report and pay fuel       or container; and (4) Every person who ac-       “timely mailing treated as timely filing/pay-
taxes monthly. There is no annual fuel tax      quires liquid fuel or fossil from a licensed     ing rule.” Timely filing of mail which does 
return to be filed.                             distributor as a wholesaler thereof and sells    not bear a U.S. Post Office cancellation 
                                                or uses it.
Hawaii’s fuel tax is a tax on distributors for                                                   mark  will  be  determined  by reference  to 
each gallon of liquid fuel refined, manufac-    “Power-generating facility” means any            other competent evidence.
tured, produced, or compounded by the dis-      electricity-generating facility that requires a 
tributor and sold or used by the distributor in permit issued under the federal Clean Air        Where to File
the State. The tax is also imposed on liquid    Act (42 U.S.C. 7401 through 7671q), the          Mail Form M-20A and your fuel tax payment 
fuel imported by the distributor or acquired    Hawaii  air  pollution  control  law  (chapter   to:
by the distributor from persons who are not     342B, HRS), or both.
                                                                                                    Hawaii Department of Taxation 
licensed distributors which is sold or used     “Small Boats” means all vessels and other           P.O. Box 259 
by the distributor in the State.                water craft except those operated in over-          Honolulu, Hawaii 96809-0259
The fuel tax is comprised of three parts, the   seas transportation beyond the State, and 
State license tax, the county fuel tax, and     ocean-going tugs and dredges.                    Effective September 1, 2019, Form M-20A 
                                                                                                 MUST be filed electronically.
the environmental response, energy, and         Who Must File
food security tax. The amount of the State                                                       Where to Get Forms, Instructions, 
license tax is set by legislation. The county   Every distributor as defined above must file 
fuel tax varies by county and is set by coun-   Form M-20A.                                      and Publications
ty ordinance. The   environmental response,                                                      Forms,  publications,  and other  docu-
energy, and food security tax is $1.05 on       Electronic Funds Transfer (EFT)                  ments, such as copies of Tax Informa-
each barrel (42 U.S. gallons) or fractional     Section 231-9.9 authorizes the Department        tion Releases and Administrative Rules 
part of a barrel of petroleum product sold by   of Taxation (Department) to require those        issued by the Department, are avail-
a distributor to any retail dealer or end user  taxpayers whose tax liability for a particu-     able on the Department’s website at 
(other than a refiner) of the petroleum prod-   lar tax exceeded $100,000 during the past        tax.hawaii.gov or you may contact a cus-
uct. The  environmental  response, energy,      year to pay that tax by EFT instead of by        tomer service representative at:
and food security tax is also imposed on        check. The Department reviews the filing 
fossil fuel at $0.19 on each one million Brit-  records of taxpayers and will mail notices       Voice:  808-587-4242 
ish thermal units (BTUs) of fossil fuel sold    to taxpayers who met this criterion. Any tax-                1-800-222-3229 (Toll-Free)
by a distributor of the fossil fuel.            payer who does not meet the criterion may 
                                                still voluntarily pay by EFT. For more infor-    Telephone for the Hearing Impaired: 
Definition of Certain Terms Used in             mation on paying taxes by EFT, see Tax In-                   808-587-1418 
Chapter 243, HRS                                formation Release Nos. 95-6 and 99-1.                        1-800-887-8974 (Toll-Free)
“Alternative fuel” means methanol, dena-        IMPORTANT: A penalty of 2% of the tax            Fax:     808-587-1488
tured ethanol, and other alcohols; mixtures     due will be assessed if a taxpayer who is        Mail:     Taxpayer Services Branch 
containing 85 percent or more by volume         required to make payments by EFT fails to                     P.O. Box 259 
of methanol, denatured ethanol, and other       timely do so. If an EFT payment is dishon-                    Honolulu, HI  96809-0259
alcohols with gasoline or other fuels; natu-    ored, a $25 service fee will be assessed. 
                                                                                                 Penalties and Interest
ral gas; liquefied petroleum gas; hydrogen; 
coal-derived liquid fuels; biodiesel; mixtures  Payments                                         Late Filing of Return – The penalty for fail-
containing 20 percent or more by volume         Payments can be made by EFT or mail a            ure to file a return on time is assessed on 
of biodiesel with diesel or other fuels; fuels  check or money order with Form VP-2, if          the tax due at a rate of 5% per month, or 
(other than alcohol) derived from biological    you are not required to pay by EFT.              part of a month, up to a maximum of 25%.
materials; and any other fuel that is sub-                                                       Failure to Pay Tax After Filing Timely 
stantially not a petroleum product and that                                                      Return – The penalty for failure to pay the 
the governor determines would yield a sub-

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INSTRUCTIONS
FORM M-20A
(REV. 7/2020) PAGE 2

tax after filing a timely return is 20% of the Line 25 –– For other alternative fuels, the Amended Returns
tax unpaid within 60 days of the prescribed State license tax rate shall be based on the If you are filing an amended return, check
due date. energy content of the fuels as compared to the amended return box at the top of Form
diesel fuel, using a lower heating value of
Failure to Timely Pay by EFT — The pen- M-20A. Complete your amended return us-
130,000 BTUs per gallon as a standard for
alty for failure to timely pay by EFT for tax- ing corrected amounts through line 46. At-
diesel, so that the tax rate, on an energy
payers who are required to pay by EFT is tach Schedule AMD, Explanation of Chang-
content basis, is equal to one-quarter the
2% of the tax due. es on Amended Return.
rate for diesel fuel. The county fuel tax rate
Failure to File Electronically — Effective may be proportional to the energy contents Line 47 –– Enter the amount paid on your
September 1, 2019, Form M-20A MUST be of the fuels, as determined by their lower original Form M-20A. If the amount is an
filed electronically unless you obtain a waiv- heating values, times one-half. overpayment, enter a minus sign, “-” before
er. (Use Form L-110 to apply for a waiver.) the amount of an overpayment.
For Alternative Fuel Tax Rates, see Instruc-
The penalty for failure to file electronically is Line 48 –– Enter the balance due (or re-
tions for Form M-2.
2% of the tax due. fund) with the amended return. If the
Interest – Interest at the rate of 2/3 of 1% Line 32 –– Report naphtha sold for use in a amount is a refund, enter a minus sign “-”
power-generating facility. See definition of
per month or part of a month shall be as- before the amount of an overpayment. The
power-generating facility on page 1.
sessed on unpaid taxes and penalties be- amount will be refunded to you.
ginning with the first calendar day after the Lines 35 and 38 –– Report liquid fuel sold
date prescribed for payment, whether or not or used in small boats. See definition of Part II –– Summary of Gallons
that first calendar day falls on a Saturday, small boats on page 1. Liquid fuel sold or Taxable in the County of Maui
Sunday, or legal holiday. used in vessels and other water craft oper- Complete Part II to report the taxable num-
ated in overseas transportation beyond the ber of gallons sold or used for the islands of
Signature State and ocean-going tugs and dredges Maui, Lanai, and Molokai.
The return must be signed and dated by the should not be reported on lines 35 and 38.
Part III –– Summary of Exempt
distributor or an authorized representative Line 43a –– Report the number of barrels
of the distributor. (42 U.S. gallons) rounded up to the nearest Sales in Gallons
barrel of petroleum product sold by a dis- Complete Part III to report the exempt num-
Specific Instructions tributor to any retail dealer or end user (oth- ber of gallons sold or used, including (1)
These instructions are numbered to cor- er than a refiner) of the petroleum product. Fuel exported or sold to the federal govern-
respond to the line items of Form M-20A. For example, if 197.05 barrels were sold, ment for official government use, (2) Im-
Other line items on the form are self-ex- report 198 barrels on line 43a. The environ- ports in interstate or foreign commerce as
planatory. mental response, energy, and food security long as the fuel is beyond the taxing power
tax is imposed on each barrel or fractional of the State (e.g. in the foreign trade zone
Note: Check the appropriate box at the part of a barrel. Do not include aviation fuel. or sales of bonded aviation fuel to air carri-
top of Form M-20A if you are filing Form ers coming from or going to foreign ports),
M-20A for the first or final time, or if you Line 44a –– Report the number of million (3) Sales to another licensed distributor, (4)
are filing an amended return. BTUs of fossil fuel product sold by a dis- Fuel sold for use in and actually delivered
tributor to any retail dealer or end user (oth- to, or sold in, the county of Kalawao, and
Amended Return Checkbox er than a refiner) of the fossil fuel product. (5) Liquid fuel sold to an intra-county ferry
If you are amending a return previously For example, if the fossil fuel product sold operating solely within the County of Maui
filed, check the AMENDED Return box at has an energy content value of 196 million (applies to taxable years beginning after
the top of the form to indicate that this is an BTUs, report 196 on line 44a. Do NOT in- December 31, 2007).
amended return. clude on this line, any petroleum products
reported by the barrel on line 43a.
Part I –– Computation of Fuel Tax Part IV –– Summary of Sales in
and Environmental Response, En- Line 46 –– The total taxes due on line 46 Gallons
ergy, and Food Security Tax must be paid in full with Form M-20A. The Complete Part IV to report total sales, ex-
tax may be paid by check or money order empt sales, and the deduction for retail
Complete Part I to compute the amount of made payable to the “Hawaii State Tax Col- sales from Form M-2, Certificate of Retail
fuel tax and environmental response, en- lector” in U.S. dollars drawn on any bank Sales of Liquid Fuel. The taxable sales
ergy, and food security tax due with the re- in the U.S. unless you are required to pay reported in Part IV should be the same
turn. In completing Part I, enter the number by EFT. Do not send cash. To ensure that amount entered on the appropriate lines in
of taxable gallons. your payment is applied correctly, please Part I.
Line 24 –– Specify the type of alternative type or print on your check or money order:
fuel sold in gallons. If you sold more than (1) “Fuel,” (2) your federal employer iden- If you are claiming an evaporation allow-
one type of alternative fuel, attach a sepa- tification number (FEIN) or social security ance deduction, attach Form M-2 received
rate schedule showing the number of gal- number (SSN), (3) daytime phone number, from each retail dealer reporting their retail
lons sold, tax rate, and taxes due. Include and (4) the filing period (MM/YY) and form sales for the month and showing the calcu-
the total number of gallons sold on line 41 number being filed (ex. 07/20 M-20A). lation of the evaporation allowance. If Form
M-2 is not attached to your return, your de-
and the total taxes on line 42. duction will be disallowed.

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