UPDATE: Please see most recent post (April 2, 2019) regarding the Federal Fuel Charge inclusion of CLEAR diesel and gasoline for farm use.
On April 1, 2019, the Federal Government will implement the new Federal Fuel Charge (Carbon Tax) in Saskatchewan, Manitoba, and Ontario. The fuel charge rates are as follows for the most commonly sold fuel products:
Gasoline - .0442/litre
Diesel - .0537/litre
Propane - .0310/litre
There is a fuel charge exemption available for fuel that is sold to a farmer if ALL of the following criteria are met:
- The fuel is “qualifying farm fuel” (which is defined as Dyed Gasoline or Dyed Diesel) that is for use exclusively in the operation of eligible farming machinery and used in the course of eligible farming activities.*Propane is not exempt for farmers.
- The dyed fuel is bulk-delivered to the farm or purchased at a cardlock.
- Previously, bulk-delivered dyed fuel was the only exemption eligible fuel. Dyed cardlock fuel was added on March 20.
- All or substantially all of the fuel is for use in the course of eligible farming activities.
- The farmer provides a completed exemption certificate to the fuel seller (seller retains original, farmer keeps a copy for his/her records)
Our Bulk Petroleum department has sent Exemption Certificates to all bulk fuel delivery customers. With the recent inclusion of dyed cardlock fuel, we want to ensure all cardlock customers are aware of the exemption and can complete the form by April 1 as well.
Qualified farmers who purchase dyed bulk-delivered fuel or dyed cardlock fuel for farm use should complete the exemption form ASAP and return it to Heritage Co-op by fax (204-867-2601), email (email@example.com), or in person to the Brandon Bulk Petroleum site. Forms are available to download here or pick up at the Brandon Bulk Petroleum site, Wawanesa Cardlock, or Strathclair Cardlock. Please retain a copy for your records.
If we do not have the form on file, legally we must charge the tax. Farmers may submit an exemption certificate after the April 1 deadline, but any farm fuel purchases made after April 1 and before the exemption form is submitted will not be eligible for exemption or retroactive reimbursement of the fuel charge.
Please note while filling out the exemption certificate that the name and business number (GST number) on the form must match the name on your Co-op membership. Farmers are responsible for notifying their fuel supplier when they are no longer farming/eligible for the exemption.
If you have any questions, contact Andrew Richards, Bulk Petroleum Manager:
Brandon Bulk Petroleum
Brandon, MB R7A 3P1