This is to notify you that as of July 1, 2022, the United States Internal Revenue Service (IRS) has issued a new Superfund Chemical Excise Tax. This tax affects Chevron’s Delo® Synthetic AMT XDT 75W-90, which contains polyalphaolefins, a chemical included in the new tax.
Please see the letter from Cary Knuth below, which we’ll distribute to Marketers this week via LubeLink.
Dear Chevron Lubricant Marketers and Customers,
The United States IRS has issued a new Superfund Chemical Excise Tax which became effective on July 1, 2022.
IRS issues Superfund chemical excise tax rates | Internal Revenue Service
Chevron Delo Synthetic AMT XDT 75W-90 contains polyalphaolefins which is a chemical included in this new tax. The tax rate for this chemical is $11.37 per ton and equates to a finished product tax amount of $0.005685 per pound. A 400-pound drum = $2.27/drum.
This new tax will be applied to the following material product and packaging codes of Chevron Delo Synthetic AMT XDT 75W-90:
Effective December 1, 2022, all Chevron lubricant invoices including Chevron Delo Synthetic AMT XDT 75W-90 will incur a separate line-item charge including this new tax at a rate of $0.005685 lb.
The Chevron tax team has verified this tax is not applicable to the normal sales tax exemptions available to resellers and tax-exempt end users.
We appreciate your business.
Sincerely
Cary Knuth
Director, Americas Lubricants
