West Virginia Tax Appeals Rules Methanol Not Taxable as Special Fuel

The West Virginia Office of Tax Appeals issued a decision vacating the motor fuel excise tax imposed on methanol produced and sold by the taxpayer. The dispute arose from a 2024 motor fuel producer tax assessment by the West Virginia State Tax Department. After reviewing testimony that the methanol is unsuitable for use in standard internal combustion engines due to issues like cold weather performance, corrosion, and potential fire hazards, the Court found that the methanol does not meet the statutory definition of a taxable “special fuel” under West Virginia law, and is therefore not subject to the state’s motor ...