Publication 225 |
2000 Tax Year |
How To Buy Diesel Fuel & Kerosene Tax Free
You buy dyed diesel fuel and dyed kerosene
excise tax free. You must use them only for a nontaxable use,
including use on a farm for farming purposes. If you use the dyed fuel
for a taxable use, you could be subject to the excise tax and a
penalty. For example, if a truck used on a farm for farming purposes
is also used on the highways (even though in connection with operating
the farm), tax applies to the diesel fuel used (or sold for use) in
operating the truck on the highways. The fuel was used off the farm
for a taxable use.
You can buy undyed diesel fuel and undyed
kerosene tax free for use on a farm for farming purposes from a
registered ultimate vendor. This applies to fuel bought by any of the
following persons.
- The owner, tenant, or operator of a farm for use on a farm
for any of the purposes listed earlier under Farming
purposes.
- Any other person for use on a farm for any of the purposes
in items (1) and (2) listed earlier under Farming
purposes.
You must give the vendor a signed certificate, which should be
substantially the same as the sample certificate shown in Table
18-3. You can include the certificate as part of any
business records you normally keep to document a sale and purchase.
You cannot claim a credit or refund for the excise tax
on diesel fuel or kerosene used on a farm for farming purposes. The
registered ultimate vendor who sells you the fuel claims the credit or
refund.
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