Marked Fuel Tax Exemption

Marked fuel is sold exempt of Gasoline Tax to some agricultural, commercial fishing, aquaculture, and other operations authorized under the Gasoline Tax Act Regulations. A valid Marked Fuel Permit is required to purchase marked gasoline or marked diesel oil. The permit is valid for three years and must be renewed prior to the expiry date shown on the permit. Improper use of marked fuel can result in fines and/or permit suspension.

If you meet eligibility requirements, apply for a Marked Fuel Permit using the forms below. The issuance fee is $10.

• The Marked Fuel Permit application is available in PDF.
  • Application for Marked Gasoline and/or Marked Diesel Oil Permit and Bonafide Farm Status for Farmers
  • Application for Marked Gasoline and/or Marked Diesel Oil Permit for Custom Agricultural Contractors
  • Application for Marked Gasoline and/or Marked Diesel Oil Permit for Aquaculturists
  • Application for Marked Gasoline and/or Marked Diesel Oil Permit for Fishers
  • Application for Marked Gasoline and/or Marked Diesel Oil Permit for Operations Other than Aquaculturists, Farmers or Fishers

Am I eligible for a marked fuel permit?

Marked fuel permits are issued to agricultural, commercial fishing and aquaculture, and other operations authorized under the Gasoline Tax Act Regulations. In general, other eligible operations may include but are not limited to:

• Commercial forestry operations and sawmills
• Recreational operations including golf courses, community rinks, trail-grooming equipment and ski-tows
• Plants that produce fertilizer, lime or feed grains
• Peat moss (equipment only) 
• Custom potato grading
• Custom agricultural contractors (for use servicing equipment under an existing marked fuel permit)
• Manufacturing or industrial equipment (stationary only)
• Boats used for water tours or piloting of ships. Pleasure craft owners require a special permit to purchase tax-exempt marked fuel at ports and later remit tax. Marked Fuel Program for Pleasure Craft Owners/Operators.

What are my responsibilities as a marked fuel permit holder?

As the holder of a marked fuel permit it is your responsibility to:

• Present your permit with each purchase so your fuel supplier can record your name, address, and permit number and expiry date which they must include on their monthly sales report.
• Use your permit to purchase only marked fuel exempt from tax. You must pay the tax on clear (un-marked) fuel.
• Purchase marked fuel for your own approved use only and not for supply to other users.
• Retain invoices for all purchases of marked and clear fuel and record how the fuels were used, for inspection or audit purposes.
• Use marked fuel for specified vehicles, equipment, or machinery only. You cannot use marked fuel in a motor vehicle registered or required to be registered under the Highway Traffic Act, including a recreational vehicle such as a snow mobile, ATV or pleasure craft. A registered farm truck performing agricultural operations must be listed on your marked fuel permit.  
• Justify using marked fuel for use as clear fuel by paying tax. The presence of dye detected in your fuel tank will be considered proof of unpaid tax.  
• Allow authorized inspectors to monitor your use of marked fuel by inspecting of your vehicle(s), fuel storage, or premises.
• Self-declare unnecessary payment of gasoline tax or any inappropriate use of marked fuel as in the following examples: 
  • When a tax-exempt operation has used unmarked (taxed) gas in a situation that is eligible for marked (tax-exempt) gas they may qualify for refund of unnecessary tax paid. The refund applies to gasoline only, not diesel. Complete the Application for Refund under the Gasoline Tax Act or Climate Leadership Act or both.
  • When a permit holder uses marked fuel for a non-exempt purpose, i.e. in a registered motor vehicle, they are required to calculate the rate of tax due and remit the unpaid tax with supporting documentation to the Province. Complete the Marked Fuel Gasoline Tax and Carbon Levy Self-Declaration.
    • To calculate rate of tax, refer Gasoline Tax Rates.