Marked Fuel Permit - Tax Exemption Program

This section provides an overview of the Marked Fuel Permit - Tax Exemption Program including information on eligibility, how to apply, program compliance and the responsibilities of a Marked Fuel Permit holder.

What is the Marked Fuel Permit - Tax Exemption Program?

The Marked Fuel Permit - Tax Exemption Program provides a Marked Fuel Permit for those authorized under the Gasoline Tax Act Regulations to purchase marked gasoline and marked diesel oil. Marked fuel is sold exempt of Gasoline Tax.

Who is eligible?

Persons who are engaged in farming, commercial fishing and aquaculture may be eligible for a Marked Fuel Permit.

In addition there are a number of other operations as specified in Section 6.2(4) of the Gasoline Tax Act Regulations that may be eligible for a Marked Fuel Permit. In general such other operations include:

Sawmills
Commercial forestry operations
Rinks owned or operated by a municipality or non-profit organization
Plants that produce fertilizer, lime or feed grains
Golf courses
Ski-tows
Custom potato grading
Custom agricultural contractors
Snowmobile trail grooming
Manufacturing or industrial (stationary equipment only)
Boats used for water tours
Boats used for piloting of ships
Peat moss (equipment only)

For a complete list of other operations, please refer to the Gasoline Tax Act Regulations.

How do I apply?

If you are a farmer and you wish to apply for the Marked Fuel Permit Gasoline Tax Exemption Program, you must complete the Application for Marked Gasoline and/or Marked Diesel Oil Permit and Bona Fide Farm Status for Farmers.

If you are a fisher and you wish to apply for the Marked Fuel Permit Gasoline Tax Exemption Program, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil Permit for Fishers form.

If you are an aquaculturist and you wish to apply for the Marked Fuel Permit Gasoline Tax Exemption Program, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil Permit for Aquaculturists form.

If you are engaged in one of the other operations as specified in Subsection 6.2 of the Gasoline Tax Act, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil Permit for Operations Other than Aquaculturists, Custom Agricultural Contractors, Farmers or Fishers form.

Applicants can fill out a Declaration of Income for Marked Gasoline and/or Marked Diesel Oil Permits form OR provide proof of income from the sale of industry relevant products, with their application.

The form, once completed, can be returned to the Taxation and Property Records Division as directed on the form.

Is there a fee?

The issuance fee for a Marked Fuel Permit is $10.

Do I ever need to re-apply?

Yes. Your Marked Fuel Permit is valid for a period of 3 years. The expiry date is printed on the permit.

Taxation and Property Records does send renewal notices prior to the expiry date, however, please note that it is the responsibility of the permit holder to ensure that the application form found under ‘How do I apply?’ is submitted to Taxation and Property Records prior to the expiry date of your current permit.

When I receive my Marked Fuel Permit, who do I need to show it to?

When you receive a Marked Fuel permit, the permit number and the permit expiry date as shown on the permit must be provided to your fuel supplier(s) for their records.

What do fuel suppliers do with the Marked Fuel Permit Information?

The fuel supplier will record the name, address, amount of sale and permit number on a Particulars of Fuel Sales to Consumers report. This report must be submitted to Taxation and Property Records monthly.

If I have a Marked Fuel Permit,

Can I purchase fuel that is clear (un-marked) tax exempt?
No. All clear fuel must be taxed.
Can I purchase marked fuel and pay the tax?
No. You must never pay tax on marked fuel. If the fuel in your tank is tested and the presence of dye is detected, this will be considered proof that tax has not been paid. If you are a pleasure craft owner, see Marked Fuel Permit Program for Pleasure Craft Owners/Operators (504 Kb).
When I make a purchase of marked fuel, do I have to keep my invoice?
Yes. As a permit holder you must retain invoices for all purchases of both marked fuel and clear fuel.
Are there other records I need to keep?
In addition to invoices for fuel purchases (both marked and clear), a permit holder must maintain a record of how the fuel was used. You must provide these records, if requested, for inspection or audit.
Can I supply marked fuel to someone else?
No. Your Marked Fuel Permit allows you to purchase marked fuel for your own use therefore you may not supply marked fuel to someone else.
Can my vehicle(s) or my premises be inspected to monitor my use of marked fuel?
Yes. As a Marked Fuel Permit holder, you must allow an inspector to inspect your vehicle(s) or premises. Inspectors can open fuel storage tanks and remove the quantity of fuel needed to monitor your use of marked fuel.
Can I use marked fuel in machinery and equipment to do custom work?
You can use marked fuel in machinery and equipment to do custom work if you hold a Marked Fuel Permit and you are performing custom agricultural services on a farm where the farmer also holds a Marked Fuel Permit.
Can I use marked fuel in machinery and equipment?
You can use marked fuel in machinery and equipment that is approved for your type of operation. Marked fuel cannot be used in any other machinery or equipment.
Can I use marked fuel in motor vehicles?
You cannot use marked fuel in any motor vehicle that is registered or required to be registered under the Highway Traffic Act (718 Kb). The exception is for registered farm trucks that have been added to a Marked Fuel Permit, where those farm trucks are performing agricultural operations. See GTN:303 for more details.
Can I use marked fuel in boats?
You can use marked fuel in boats when the boat is used in an approved commercial operation.
Marked fuel can also be used in pleasure craft under the Marked Fuel Permit Program for Pleasure Craft Owners (504 Kb). This program provides a mechanism for pleasure craft owners to purchase marked fuel in situations where taxed clear (unmarked) fuel is not available and to self-assess and remit the tax on their marked fuel purchases. Applicants must fill out an Application for Marked Gasoline and/or Marked Diesel Oil Permit for Pleasure Craft Owners/Operators.
Can I use marked fuel in recreational vehicles (i.e. ATV’s, snowmobiles, personal water craft, etc.)?
No. You cannot use marked fuel in recreational vehicles.
Are there penalties for using marked fuel where it is not allowed?
Improper use of marked fuel can result in fines and/or suspension of your Marked Fuel Permit.
Fuel suppliers must submit the Particulars of Fuel Sales to Consumers report to Taxation and Property Records Division monthly. The report is reviewed to ensure that all sales of Marked Fuel are made to eligible consumers. From time to time fuel suppliers will request an update of the status of the permit numbers of their customers by submitting a Vendor Request to Update Permit Numbers to Taxation and Property Records.
What do I do if I use marked fuel in a situation where it is not allowed?
On occasion Marked Fuel Permit holders may, in error, use marked fuel in non-tax exempt commercial operations (i.e. in a motor vehicle registered or required to be registered under the Highway Traffic Act (718 Kb). If this should happen, the permit holder must self-declare the non-tax exempt commercial operation use by completing the Marked Fuel Gasoline Tax and Carbon Levy Self-Declaration form and by submitting the form together with the required supporting documentation and the tax payment due to Taxation and Property Records as directed on the form.
Please refer to Gasoline Tax Rates for information on tax rates to be used in your tax due calculation.
What do I do if I use taxed clear unmarked fuel for commercial operations where I was eligible for the use of marked fuel?
If you used unmarked gasoline in your exempt commercial operations in situations where you were eligible for the use of marked fuel, you may be eligible for a refund of the Gasoline Tax paid. You can apply for a refund by completing an Application for Refund under the Gasoline Tax Act or Climate Leadership Act or Both form and returning it to Taxation and Property Records as directed on the form. The refund applies to GASOLINE ONLY and not diesel oil.