Gasoline & Motive Fuel Tax - A basic overview of gasoline and motive fuel taxes and exemptions
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Disclaimer: This is intended to provide information respecting Gasoline & Motive Fuel Tax under the Gasoline and Motive Fuel Tax Act (the Act). This should not be regarded as a replacement of the laws, regulations or administrative documents to which it refers.
In New Brunswick, gasoline and/or motive fuel purchased, acquired or consumed is subject to tax. This tax is imposed under the Gasoline and Motive Fuel Tax Act which is administered by the Revenue & Taxation Division of the Department of Finance.
Basic Information on Gasoline and Motive Fuel
Gasoline is any petroleum product:
- containing any derivative of petroleum, natural gas or coal;
- having a specific gravity of 0.8017 or under at 60 degrees Fahrenheit (15.6 degrees Celsius);
- including benzol and any benzol mixture, but;
- not including manufactured gas, natural gas, bunker fuel, crude oil or propane.
Motive fuel is any gas fuel or liquid fuel:
- that is not gasoline;
- that is used for moving or operating any internal combustion engine;
- or that is used for heating;
- and does not include manufactured gas.
Some examples of motive fuel: ( back to top )
- kerosene
- propane
- natural gas
- crude oil
- furnace oil
- stove oil
- diesel
Gasoline and Motive Fuel Tax Rates ( back to top )
The current tax rates are:
- Gasoline tax -- 10.7 cents per litre;
- Motive fuel (e.g. diesel) tax -- 16.9 cents per litre;
- Propane tax -- 6.7 cents per litre;
- Aviation fuel tax -- 2.5 cents per litre;
- Locomotive fuel tax -- 4.3 cents per litre.
The Gasoline and Motive Fuel Tax Act provides for point-of-sale tax exemptions on motive fuel and refund of tax on both gasoline and motive fuel for the following classes of consumers:
AQUACULTURISTS (click here to access the Aquaculturist's Guide)
Who qualifies as an Aquaculturist? ( back to top )
A person who raises one or more aquatic species or harvests one or more aquatic plants for human consumption for commercial gain, who holds all required valid federal and provincial commercial aquaculture licences or permits and who meets one or more of the following criteria may be determined to be an aquaculturist if the person:
- derived an annual gross income of at least $10,000 or at least fifty per cent (50%) of the person's annual gross income from such activity during either of the applicant's two (2) fiscal years preceding the date of the application for a fuel exemption card;
- in the case of a fish pond operator, derived income from a sales volume of at least 5,000 fish during either of the applicant's two (2) fiscal years preceding the date of the application for a card; or
- in the case of a start-up operation, demonstrates by means of a three (3) year business development plan approved by the Minister of Agriculture, Fisheries and Aquaculture that the person has invested at least $10,000 in stock and equipment and will be able to derive from the operation an annual gross income of at least $10,000.
How am I identified as an Aquaculturist?
An aquaculturist is a person who holds a valid fuel exemption card. In order to obtain the exemption you must apply to the Revenue & Taxation Division of the Department of Finance for the aquaculturist's fuel exemption card. Upon obtaining the card, the qualifying consumer may make tax-exempt purchases of motive fuel, and may apply for refunds of any tax paid on gasoline and/or motive fuel consumed within a qualifying area.
The applicant must also submit, along with the application, the following:
- A copy of a Commercial Fish Farm Permit; or
- A copy of a Shellfish Permit; or
- A copy of a Commercial Fish Pond Licence issued by Department of Natural Resources and Energy, Province of New Brunswick; and
- If this is a first year start-up operation, attach a copy of your three-year business development plan approved by the Minister of Agriculture, Fisheries and Aquaculture.
Fees
The card is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The aquaculturist's fuel exemption card must be renewed every two (2) years. It is the responsibility of the aquaculturist to renew the fuel exemption card before the expiry date stated on the card. In order to renew, an aquaculturist must meet the same criteria as with the initial application and pay a renewal fee of $25.
Where can I use tax-exempt motive fuel and in what equipment?
Aquaculturists who qualify for a fuel exemption card may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the operation of:
- stationary and portable engines used solely and directly in aquaculture; or
- service boats used solely and directly in aquaculture; or
- equipment used to provide heat used solely and directly in aquaculture.
Please Note: Aquaculturists may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the aquaculturist is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the aquaculturist is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st. An aquaculturist choosing not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Validly registered Aquaculturists who consume tax-exempt motive fuel are obligated to maintain records as follows:
Specifically, an aquaculturist consuming tax-exempt motive fuel shall keep and maintain records indicating:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
COMMERCIAL FISHERMEN (click here to access the Commercial Fisherman's Guide)
Who qualifies as a Commercial Fisherman? ( back to top )
A person who meets one or more of the following criteria may be determined to be a commercial fisherman if the person:
- holds a valid fishing licence issued by the federal Minister of Fisheries and Oceans and derived
- an annual gross income of at least $5,000 from catching fish for commercial gain in either of the person's two (2) fiscal years preceding the date of the application; or
- at least fifty per cent (50%) of the person's annual gross income from catching fish for commercial gain in either of the person's two (2) fiscal years preceding the date of the application.
- derived from transporting fish by water for commercial gain from a fishing boat or a herring weir to shore,
- an annual gross income of at least $10,000 in either of the person's two (2) fiscal years preceding the date of the application; or
- at least fifty per cent (50%) of the person's annual gross income in either of the person's two (2) fiscal years preceding the date of the application.
- actually tends the weir or weirs and is the holder or is one of the holders of any and all valid herring weir site permits required by the federal Minister of Fisheries and Oceans; or
- in the case of a start-up operation,
- holds a valid fishing licence issued by the federal Minister of Fisheries and Oceans, and
- has invested at least $10,000 in a fishing boat and equipment.
How am I identified as a Commercial Fisherman?
A commercial fisherman is a person who holds a valid fuel exemption card. In order to obtain the exemption you must apply to the Revenue & Taxation Division of the Department of Finance for the commercial fisherman's fuel exemption card. Upon obtaining the card, the qualifying consumer may make tax-exempt purchases of motive fuel, and may apply for refunds of any tax paid on gasoline and/or motive fuel consumed within a qualifying area.
The applicant must also submit, along with the application, the following:
- A copy of all fishing licences or permits issued by the federal Minister of Fisheries and Oceans; and
- If this is a first year start-up operation, show amount invested in fishing boat and equipment by attaching copies of sales invoices obtained at the time of purchase of fishing boat and equipment.
Fees
The card is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The commercial fisherman's fuel exemption card must be renewed every two (2) years. It is the responsibility of the commercial fisherman to renew the fuel exemption card before the expiry date stated on the card. In order to renew, a commercial fisherman must meet the same criteria as with the initial application and pay a renewal fee of $25.
Where can I use tax-exempt motive fuel and in what equipment?
Commercial Fishermen who qualify for a fuel exemption card may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the:
- operation of any vessel while carrying on fishing operations;
- operation of stationary or portable engines used in the landing of fish on a boat or to a wharf; but
- not in the operation of a vessel as a chartered boat for sport fishing.
Please Note: Fishermen may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the commercial fisherman is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the commercial fisherman is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st. A commercial fisherman choosing not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Commercial Fishermen who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
FARMERS (click here to access the Farmer's Guide)
Who qualifies as a Farmer? ( back to top )
The following 3 categories can be used to determine a person to be a farmer:
- A person who meets 1 or more of the following criteria:
- Maintains at least 15 head of cattle
- Holds a valid milk quota issued by the New Brunswick Marketing Board
- Maintains at least 200 egg-laying hens or turkey hens
- Holds a licence issued by:
- the New Brunswick Chicken Marketing Board,
- the New Brunswick Egg Marketing Board, or
- the New Brunswick Turkey Marketing Board
- Maintains at least 10 sows
- Marketed at least 100 slaughter hogs during the fiscal year preceding the date of the person's application
- Maintains at least 30 breeding ewes (female sheep)
- Maintains at least 10 breeding female goats
- Maintains at least 10 breeding female foxes
- Maintains at least 50 breeding female mink
- Maintains at least 50 doe rabbits
- Maintains at least 20 breeding female chinchillas
- Maintains at least 50 beehives
- Produces on at least 2 acres of land:
- strawberries,
- raspberries,
- cranberries,
- gooseberries,
- asparagus, or
- cultivated fiddleheads
- Produces blueberries on at least 5 acres of land
- Operates an orchard on at least 5 acres of land
- Produces a vegetable crop on at least 5 acres of land
- Produces a grain crop on at least 20 acres of land
- Produces a tobacco crop on at least 7 acres of land
- Operates a greenhouse or greenhouses totalling at least 2,000 square feet in area for the growing:
- vegetables,
- vegetable seedlings,
- fruit bearing plants,
- fruit bearing bushes, or
- fruit bearing trees
- Derived an annual gross income of at least $5,000 from raising wild game for human consumption.
- Cultivated hay on at least 50 acres of land and derived an annual gross income of at least $5,000 from the sale of the hay in arm’s length transactions in either of the person’s 2 fiscal years preceding the date of the application
- A person may also qualify as a farmer if the person derived an annual gross income of at least $5,000 from any combination of the activities referred to in the paragraphs "a" to "t" in either of the person’s 2 fiscal years preceding the date of the application.
- In the case of a start-up operation, the person is following a management plan
- that has been approved by the Minister of Agriculture, Fisheries and Aquaculture, and
- that will, in the opinion of the Minister enable the applicant to meet 1 or more of the criteria set out in paragraphs "a" to "v" when fully implemented.
How am I identified as a Farmer?
A farmer is a person who holds a valid fuel exemption card. In order to obtain the exemption you must apply to the Revenue & Taxation Division of the Department of Finance for the farmer's fuel exemption card. Upon obtaining the card, the qualifying consumer may make tax-exempt purchases of motive fuel, and may apply for refunds of any tax paid on gasoline and/or motive fuel consumed within a qualifying area.
The applicant must also submit, along with the application, the following:
- If applicable, the current membership number with the Agriculture Producers Association of NB or La Fédération des agriculteurs et agricultrices francophones du Nouveau-Brunswick; and
- If this is a first year start-up operation, a copy of your management plan approved by the Minister of Agriculture, Fisheries and Aquaculture.
Fees
The card is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.
Renewals
The farmer's fuel exemption card must be renewed yearly. It is the responsibility of the farmer to renew the fuel exemption card before the expiry date stated on the card. In order to renew, a farmer must meet the same criteria as with the initial application and pay a renewal fee of $12.50.
Where can I use tax-exempt motive fuel and in what equipment?
Farmers who qualify for a fuel exemption card may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for the following purposes:
- operating any equipment, other than a motor vehicle required to be registered under the Motor Vehicle Act (ie. a truck), that is used solely in carrying out agricultural work on farm land;
- operating a tractor on a public highway while moving the tractor from one place to another or while hauling farm produce or agricultural machinery owned by the owner of the tractor;
- operating a combine on a public highway while moving the combine from one place to another; or
- burning blueberry fields.
Please Note: Farmers may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the farmer is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the farmer is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st. A farmer choosing not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Farmers who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
SILVICULTURISTS (click here to access the Silviculturist's Guide)
Who qualifies as a Silviculturist? ( back to top )
A person who meets one or more of the following criteria may be determined to be a silviculturist if the person:
- cultivates at least two (2) acres of, or at least two thousand (2,000) Christmas trees or landscaping trees or shrubs;
- cultivates at least two thousand (2,000) square feet of landscaping trees, shrubs, flowers or bedding plants in a greenhouse;
- produces maple products and has at least five hundred (500) taps;
- produced at least five (5) acres of sod during the two (2) years preceding the date of the application;
- has management recommendations, or a plan, approved by the Minister of Natural Resources and Energy to manage at least twenty-five (25) acres of woodland owned by the person, and, during the two (2) years preceding the date of the application,
- thinned or planted at least one (1) acre of the woodland, and
- harvested at least five (5) cords of wood products from the woodland;
- owns at least twenty-five (25) acres of woodland and, during the two (2) years preceding the date of the application,
- thinned or planted at least five (5) acres of the woodland, or
- harvested at least fifty cords (50) of wood products from the woodland; or
- carried out the thinning, planting and tending of at least fifty (50) acres of forest during the applicant's two (2) fiscal years preceding the date of the application and derived
- an annual gross income of at least $5,000 in either of those two (2) fiscal years from such activity, or
- at least twenty per cent (20%) of the person's annual gross income in either of those two (2) fiscal years from such activity.
How am I identified as a Silviculturist?
A silviculturist is a person who holds a valid fuel exemption card. In order to obtain the exemption you must apply to the Revenue & Taxation Division of the Department of Finance for the silviculturist's fuel exemption card. Upon obtaining the card, the qualifying consumer may make tax-exempt purchases of motive fuel, and may apply for refunds of any tax paid on gasoline and/or motive fuel consumed within a qualifying area.
Important Note: Applicants wishing to apply on grounds that they thin, plant, and harvest trees from their own land must include a copy of a Management Plan approved by the Minister of Natural Resources in order to confirm eligibility.
Fees
The card is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The silviculturist's fuel exemption card must be renewed every two (2) years. It is the responsibility of the silviculturist to renew the fuel exemption card before the expiry date stated on the card. In order to renew, a silviculturist must meet the same criteria as with the initial application and pay a renewal fee of $25.
Where can I use tax-exempt motive fuel and in what equipment?
Silviculturists who qualify for a fuel exemption card may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the:
- operation of a tractor, other than a truck tractor, and any other machinery used for harvesting trees in a logging operation conducted in a forest area or a Christmas tree farm;
- operation of an unregistered motor vehicle (ie. a truck) while transporting wood products and while not on a public highway; or
- operation of any equipment used solely and directly in silviculture and not required to be registered under the Motor Vehicle Act.
Please Note: Silviculturists may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the silviculturist is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the silviculturist is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st. A silviculturist choosing not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Silviculturists who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
WOOD PRODUCERS (click here to access the Wood Producer's Guide)
Who qualifies as a Wood Producer? ( back to top )
A person who operates a commercial wood harvesting operation involving the felling of trees or the removal of trees from stump to a skidway, log dump or carrier and who meets one or more of the following criteria may be determined to be a wood producer if the person:
- harvested or cut an average of at least three hundred (300) cords of wood or the equivalent of at least three hundred (300) cords of wood in either of the applicant's two (2) fiscal years preceding the date of the application;
- derived from the operation an annual gross income of at least $5,000 in either of the applicant's two (2) fiscal years preceding the date of the application; and
- in the case of a start-up operation, has invested at least $10,000 in wood harvesting equipment.
How am I identified as a Wood Producer?
A wood producer is a person who holds a valid fuel exemption card. In order to obtain the exemption you must apply to the Revenue & Taxation Division of the Department of Finance for the wood producer's fuel exemption card. Upon obtaining the card, the qualifying consumer may make tax-exempt purchases of motive fuel, and may apply for refunds of any tax paid on gasoline and/or motive fuel consumed within a qualifying area.
Important Note: For a first year start-up operation, copies of sales invoices obtained at the time of purchase, showing an investment of at least $10,000.00 in wood harvesting equipment must be included with the application.
Fees
The card is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The wood producer's fuel exemption card must be renewed every two (2) years. It is the responsibility of the wood producer to renew the fuel exemption card before the expiry date stated on the card. In order to renew, a wood producer must meet the same criteria as with the initial application and pay a renewal fee of $25.
Where can I use tax-exempt motive fuel and in what equipment?
Wood producers who qualify for a fuel exemption card may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for the following purposes:
- operating a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area; or
- operating an unregistered motor vehicle (ie. a truck) while transporting wood products and while being operated on property other than a public highway.
Please Note: Wood producers may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the wood producer is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the wood producer is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st. A wood producer choosing not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Wood Producers who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
FOREST WORKERS (click here to access the Forest Worker's Guide)
The following classes of consumers are deemed to be forest workers:
- Persons under contract with silviculturists
- Persons under contract with wood producers
- Persons engaged in the construction and maintenance of woods roads for the purpose of harvesting trees
Effective April 1st, 2005, forest workers will need to register with the Department of Finance and apply for a Purchaser's Permit in order to benefit from the motive fuel tax exemption at point-of-sale. They will no longer be able to purchase tax-exempt motive fuel at point-of-sale by presenting a signed declaration. Gasoline and Motive Fuel Wholesalers and Retailers will no longer accept the signed declarations from these groups.
PERSONS UNDER CONTRACT WITH SILVICULTURISTS ( back to top )
Persons who have entered into a contract with a validly registered silviculturist and who specialize in some aspect of the silviculture process are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area. Forest workers who opt to buy all motive fuel tax paid and subsequently apply for refunds are not required to obtain a purchaser's permit.
Where can I use tax-exempt motive fuel and in what equipment?
Tax-exempt motive fuel can be consumed if used solely in the operation of
- a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area or for harvesting trees on a Christmas tree farm;
- an unregistered motor vehicle while transporting wood products and while being operated on a property other than a public highway; or
- any equipment, other than a motor vehicle required to be registered under the Motor Vehicle Act, used solely and directly in silviculture.
PERSONS UNDER CONTRACT WITH WOOD PRODUCERS
Persons who have entered into a contract with a validly registered wood producer and who specialize in some other aspect of the wood harvesting process, such as operating a slasher or delimber, or equipment for building and maintaining woods roads, are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area. Forest workers who opt to buy all motive fuel tax paid and subsequently apply for refunds are not required to obtain a purchaser's permit.
Where can I use tax-exempt motive fuel and in what equipment?
Tax-exempt motive fuel can be consumed if used solely in the operation of
- a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area, or
- an unregistered motor vehicle while transporting wood products and while being operated on property other than a public highway.
CONSTRUCTION AND MAINTENANCE OF WOOD ROADS FOR THE PURPOSE OF HARVESTING TREES
Persons engaged in the construction and maintenance of woods roads for the purpose of harvesting trees are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area. Forest workers who opt to buy all motive fuel tax paid and subsequently apply for refunds are not required to obtain a purchaser's permit.
A forest worker may purchase, acquire, use or consume motive fuel for use solely in the operation of an unregistered motor vehicle or any other unregistered machinery or equipment in the construction or maintenance of a woods road for the purpose of harvesting trees in a logging operation conducted in a forest area.
In general, this exemption applies to the following pieces of equipment:
- dozers;
- road graders;
- scarification equipment (used to break up and loosen the surface of the ground);
- unregistered machinery used to clear stumps, build and level the surface of the roads to remove snow, and maintain ditches, right-of ways and culverts.
Fees
The forest worker's purchaser's permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The forest worker's purchaser's permit must be renewed every two (2) years. It is the responsibility of the forest worker to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a forest worker must meet the same criteria as with the initial application and pay a renewal fee of $25.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the forest worker having a valid purchaser's permit is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the forest worker is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st.
A forest worker who holds a valid purchaser's permit and chooses not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Forest workers who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
MANUFACTURERS (click here to access the Manufacturer's Guide)
Effective April 1st, 2005, manufacturers will need to register with the Department of Finance and apply for a Purchaser's Permit in order to benefit from the motive fuel tax exemption at point-of-sale. They will no longer be able to purchase tax-exempt motive fuel at point-of-sale by presenting a signed declaration. Gasoline and Motive Fuel Wholesalers and Retailers will no longer accept the signed declarations from these groups. However, manufacturers who opt to buy all motive fuel tax paid and subsequently apply for refunds are not required to obtain a purchaser's permit.
Who is a Manufacturer?
Persons engaged in activities such as making (forming by shaping or putting parts together) goods by hand or especially by machinery, often on a large scale and with division of labour.
Where can I use tax-exempt motive fuel and in what equipment?
Tax-exempt motive fuel can be consumed if used solely in the operation of
- stationary and portable engines other than those mounted on motor vehicles or propelled by motor vehicles;
- equipment used to heat materials;
- tractors other than truck tractors on property other than a public highway; or
- motor vehicles which are not required by the Motor Vehicle Act to be registered under that Act.
Fees
The purchaser's permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The purchaser's permit must be renewed every two (2) years. It is the responsibility of the manufacturer to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a manufacturer must meet the same criteria as with the initial application and pay a renewal fee of $25.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the manufacturer having a valid purchaser's permit is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the manufacturer is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st.
A manufacturer who holds a valid purchaser's permit and chooses not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Manufacturers who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
MINING OR QUARRYING (click here to access the Mining/Quarrying Guide)
Effective April 1st, 2005, persons engaged in mining/quarrying will need to register with the Department of Finance and apply for a Purchaser's Permit in order to benefit from the motive fuel tax exemption at point-of-sale. They will no longer be able to purchase tax-exempt motive fuel at point-of-sale by presenting a signed declaration. Gasoline and Motive Fuel Wholesalers and Retailers will no longer accept the signed declarations from these groups. However, persons engaged in mining/quarrying who opt to buy all motive fuel tax paid and subsequently apply for refunds are not required to obtain a purchaser's permit.
Who qualifies for the exemption?
Persons engaged in mining or quarrying may consume tax-exempt motive fuel while being used solely and directly in mining or quarrying not carried on in connection with the repair or construction of a public highway or a public bridge.
Where can I use tax-exempt motive fuel and in what equipment?
Tax-exempt motive fuel can be consumed if used solely in the operation of diesel powered
- self-propelled trucks, which are mounted on rubber-tired wheels, with an unladen gross mass of forty-five hundred kilograms (4500 Kg) or more,
- stationary engines,
- portable engines, or
- tractors other than truck tractors.
Fees
Persons engaged in mining or quarrying wishing to obtain a purchaser's permit can contact the Revenue & Taxation Division, Department of Finance and the fee is $25 for a two-year registration period.
Renewals
The purchaser's permit must be renewed every two (2) years. It is the responsibility of the person engaged in mining or quarrying to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a person engaged in mining or quarrying must meet the same criteria as with the initial application and pay a renewal fee of $25.
Annual Reporting Requirement (Annual Fuel Purchase and Usage Report)
On an annual basis, the person engaged in mining or quarrying having a valid purchaser's permit is required to submit an Annual Fuel Purchase and Usage Report to the Revenue and Taxation Division, Department of Finance. This report is to be completed using the purchase and consumption records (see record keeping requirements) that the person engaged in mining or quarrying is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act. The due date of the first report is April 30, 2006 and each April of every year thereafter. The report is to be completed in its entirety covering the previous twelve-month period ending March 31st.
Persons engaged in mining or quarrying who hold valid purchaser's permits and choose not to complete and submit this report may be subject to an audit and revocation of the privilege to purchase tax-exempt motive fuel.
Persons engaged in mining/quarrying who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
Who qualifies for the exemption? ( back to top )
Persons engaged in the operation of vessels may purchase tax-exempt motive fuel to be used in the operation of a registered vessel within the meaning of the Canada Shipping Act, exceeding two hundred (200) tons gross tonnage but not for use in the operation of a registered vessel that is used for dredging purposes. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.
How do I purchase tax-exempt motive fuel?
Vessel operators may purchase tax-exempt motive fuel provided they present a signed certification that the motive fuel is to be used solely and directly in a registered vessel.
Example:I/we hereby certify that the motive fuel purchased herein is to be used in the operation of a registered vessel within the meaning of the Canada Shipping Act pursuant to paragraph 6(6)(d) of the Act.
Signature ___________________________
Position ____________________________
Date _______________________________Vessel Operators who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
PRODUCTION OF ELECTRICITY FOR SALE
Who qualifies for the exemption? ( back to top )
Persons engaged in the production of electricity for sale may purchase tax-exempt motive fuel. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.
How do I purchase tax-exempt motive fuel?
Producers of electricity may purchase tax-exempt motive fuel provided they present a signed certification that the motive fuel is to be used in the operation of a generator used to produce electricity for sale.
Example:I/we hereby certify that the motive fuel purchased herein is to be used in the operation of a generator used to produce electricity for sale pursuant to paragraph 6(6)(j.1) of the Act.
Signature ___________________________
Position ____________________________
Date _______________________________Those people engaged in the production of electricity for sale who consume tax-exempt motive fuel are obligated to maintain records as follows:
Specifically, persons engaged in the production of electricity for sale who consume tax-exempt motive fuel shall keep and maintain records indicating:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
PREPARATION OF FOOD, LIGHTING AND HEATING OF PREMISES OR HEATING OF DOMESTIC HOT WATER
Who qualifies for the exemption? ( back to top )
Persons engaged in the preparation of food, lighting and heating of premises or heating of domestic hot water may purchase tax-exempt motive fuel, provided that it can be verified that the motive fuel storage tanks are connected to or would be reasonably expected to be connected to equipment or apparatus used in the preparation of food, the lighting and heating of premises, or for the heating of domestic hot water. This use must be recorded in the sales records for the customer. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.
Note: When the tax-exempt motive fuel is picked up at the retail outlet, the fuel usage must be recorded on the sales record (i.e. fuel used to heat a camp, etc.) and a signed certification stating that the fuel is to be used solely and directly in the preparation of food, lighting, heating of premises or heating of domestic hot water must be given to the retail outlet.
Example:I/we hereby certify that the fuel purchased herein is to be used solely and directly in the preparation of food, lighting, heating of premises or for heating of domestic hot water pursuant to paragraphs 6(6)(i.1) and (j) of the Act.
Signature ___________________________
Position ____________________________
Date _______________________________Those persons engaged in the preparation of food, lighting and heating of premises or heating of domestic hot water who consume tax-exempt motive fuel are obligated to maintain records as follows:
- The date of each purchase or acquisition of tax-exempt motive fuel;
- The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
- The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
- The type of tax-exempt motive fuel purchased or acquired;
- The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
- In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.
Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.
Gasoline and / or Motive Fuel Tax Refunds ( back to top )
The following is a list of refunds available under the Gasoline and Motive Fuel Tax Act:
Aquaculturists
Commercial Fishermen
Farmers
Silviculturists
Wood Producers
Forest Workers
Manufacturers
Persons engaged in Mining / Quarrying
Change of Use
Spills, Fire, Theft (specific to Wholesalers and Retailers)
Bad Debts (specific to Wholesalers)
Aviation Fuel (specific to International Commercial Flights)
Other Overpayments of Tax (specific to registered vessels, production of electricity for sale, preparation of food, lighting and heating of premises or heating water for domestic use or other - example: clerical error)To determine the documentation required to substantiate your claim, please refer to the instructions attached with each application form.
Most claims are limited to a period of five (5) years from the day on which the overpayment of tax was made. However, claims relating to bad debts are limited to a period of twelve (12) months.
For more information relating to gasoline and / or motive fuel tax refund claims, please contact:
Department of Finance
Revenue & Taxation Division
Tax Program Administration Section
P.O. Box 3000
Fredericton, NB E3B 5G5
Telephone: (506) 453-2404Applications - Licences/Permits/Exempt Cards ( back to top )
Objection and Appeal ( back to top )
Any person who wishes to dispute a tax liability, either the amount of tax paid, or the amount of tax assessed as a result of an audit may do so by filing a Notice of Objection with the Commissioner setting out the reasons for the objection and all relevant facts. The notice must be filed within 30 days after paying the tax or the date of the service or mailing of a Notice of Assessment, whichever is sooner.
Upon receipt of a Notice of Objection, the Commissioner shall within 60 days reconsider the assessment and vacate, confirm or vary the assessment or reassess, and the Commissioner shall thereupon notify the appelant of the action by personal service or by ordinary or registered mail.
Appelants who are dissatisfied with the decision of the Commissioner may, within 30 days after being notified of such decision, file a Notice of Appeal with the Minister of Finance. The Minister shall within 30 days after the receipt of a Notice of Appeal, fix a date to consider the appeal and shall give a notice of such hearing to the appellant and the Commissioner. Upon any such appeal, the Minister may affirm, vary or reverse the decision of the Commissioner and shall give a written notice of his decision to the appellant by personal service or by ordinary or registered mail.
Appeal to The Court of Queen's Bench
Appellants who are dissatisfied with the decision of the Minister may, within 30 days after the date of service or mailing of the notice explaining the Minister's decision, appeal from such decision to a judge of The Court of Queen's Bench of New Brunswick.
For more information, please contact:Department of Finance
Revenue & Taxation Division
Tax Program Administration Section
P.O. Box 3000
Fredericton, New Brunswick
E3B 5G5
Telephone: (506) 453-2404
Fax: (506) 457-7335
E-mail: wwwfin@gnb.ca
Web Site: www.gnb.ca/0024/index-e.asp