Form FT-500: Application for Refund of Sales Tax Paid on Petroleum Products

Form FT-500, issued by the New York State Department of Taxation and Finance, is used to request a refund of sales tax paid on petroleum products. This applies when a buyer paid sales tax on gasoline, diesel, or other petroleum products but later determines that tax wasn’t actually owed on that purchase, or that the product qualifies for an exemption that wasn’t applied at the time of sale.

This situation comes up more often than people expect. A business might buy fuel for a use that’s exempt from sales tax, such as fuel used in manufacturing, farming, or certain commercial operations, but the vendor charges tax anyway because the exemption wasn’t documented at the point of sale. Rather than losing that money, the purchaser can file Form FT-500 to claim it back directly from the state.

Who Needs to File This Form

Form FT-500 is typically used by businesses and individuals who purchased petroleum products and paid sales tax on them, but qualify for a refund because:

• The fuel was used for an exempt purpose (such as farm production, manufacturing, or certain industrial processes).
• Sales tax was charged in error on a transaction that should have been tax-exempt.
• The purchaser is an entity entitled to an exemption, such as certain government agencies or qualifying organizations, and the exemption wasn’t applied at the time of purchase.

If your business regularly deals with exempt fuel purchases, it’s worth comparing your situation with other exemption-related paperwork New York requires. For example, government contractors and nonresident workers sometimes need separate proof of status, similar to how Form DTF-820 is used to certify nonresidency for other state tax purposes.

When to Use Form FT-500

You’d file this form after the petroleum purchase has already taken place and sales tax has already been paid. It’s not a form you submit at the time of purchase to avoid tax — it’s a retroactive refund request. Because of that, timing matters: New York sets deadlines for how far back you can claim a refund, so it’s best to file as soon as you identify the overpayment rather than waiting until year-end.

Businesses that handle fuel sales for exempt buyers, including diplomatic missions or foreign government personnel, should also be aware of related exemption paperwork. In some cases, sellers may need documentation similar to what’s required under Form DTF-950, which covers sales tax exemptions for diplomatic missions and personnel, to confirm that a transaction qualifies for exempt treatment in the first place.

How to Get and Fill Out Form FT-500

Form FT-500 is only available as a printable PDF — there’s no digital fill-in version. That means you’ll need to download the form, print it, and complete it by hand using black or blue ink. Make sure your handwriting is legible, since illegible entries are one of the most common reasons refund applications get delayed or rejected.

When completing the form, you’ll typically need to provide:

• Your business or individual identifying information, including your Employer Identification Number (EIN) or Social Security Number.
• Details about the petroleum product purchased, including type, quantity, and date of purchase.
• The amount of sales tax paid and the reason you’re entitled to a refund.
• Supporting documentation, such as original invoices or receipts showing the tax paid.

Keep copies of all invoices and receipts tied to the purchase, since the Department of Taxation and Finance may request this documentation to verify your claim before issuing a refund. Missing or incomplete records are a common reason applications get sent back for correction.

Once completed, mail the form along with any required attachments to the address listed in the form’s instructions. Processing times can vary depending on the volume of claims the department is handling, so it’s reasonable to expect some weeks before you hear back or receive your refund.

If your business also deals with temporary sales events or vendor shows in New York, it’s worth reviewing Form DTF-727, since sales tax reporting obligations for shows and petroleum refund claims sometimes intersect for businesses operating across multiple tax categories.

Because Form FT-500 deals specifically with petroleum products and sales tax — not excise tax or motor fuel tax, which have their own separate refund forms — double-check that this is the correct form for your situation before filing. Using the wrong form is a common mistake that delays refunds unnecessarily.