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Tax
and Revenue Administration
Fuel Tax Act
Information Circular BD-8R7
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Released/Last
Updated: |
January 20, 2003 |
Produced by: |
Alberta Finance, Tax
and Revenue Administration |
For more information: |
tra.revenue@gov.ab.ca |
January 2003/BD-8R7
Note: Due to the
Government of Alberta reorganization in November 2004, where applicable,
the web versions of our documents have been updated to change references
from "Minister of Revenue" or "Provincial Treasurer"
to "Minister of Finance". References to "Revenue Canada"
or "Canada Customs and Revenue Agency" have been changed to
"Canada Revenue Agency" to reflect that name change as well.
The paper version of this document is available from Tax
and Revenue Administration and if applicable, will be updated as
time permits.
ALBERTA FUEL TAX ACT
INFORMATION CIRCULAR - BULK DEALERS
IMPORTANT RATES AND
DATES
This information circular
sets out the current:
Fuel Tax Rates
- The current rates of fuel tax are:
Gasoline (all grades) |
- 9 cents per litre |
Aviation Fuel (jet fuel
and avgas) |
- 1.5 cents per litre |
Diesel Fuel (all
grades) |
- 9 cents per litre |
Locomotive Fuel |
- 1.5 cents per litre |
Propane (motive
use) |
- 6.5 cents per litre |
Ethanol |
- Nil (paragraph 2) |
Marked fuel
(gasoline and diesel) |
- Nil |
Natural Gas |
- Nil |
- The tax rate on fuel consisting of a mixture of
gasoline and ethanol consists of the rate shown for gasoline times the
percentage of gasoline in the mix. For example, if fuel consists of
90% gasoline and 10% ethanol, the tax rate on that fuel is 8.1 cents
per litre.
- With the exception of ethanol as shown above, the tax
applies to any additives mixed with the fuel before it is sold to a
consumer (for example, methanol, reformate, natural gas liquids,
octane enhancers, etc.)
Alberta
Farm Fuel Distribution Allowance ("AFFDA") Rates
- The current AFFDA rates, which have been in effect
since February 25, 1994, are:
Gasoline (Marked) |
- Nil |
Aviation Fuel
(Avgas) |
- Nil |
Diesel Fuel
(Marked) |
- 6 cents per litre |
Bulk Dealer
Compensation Rates
- Bulk fuel dealers are entitled to yearly compensation
if they sell marked fuel in accordance with the Fuel Tax Act and
Regulations.
- The current compensation rate is:
Marked fuel (gasoline and
diesel
($1.00 per 10,000 litres) |
- .01 cent per litre |
Minimum amount per dealer per
year |
- $200.00 |
- Tax and Revenue Administration ("TRA")
obtains information from the oil marketing companies on the volumes of
marked fuel sold by their commission agents in the previous year. TRA
uses that information, plus the information from independent agents'
returns received, to calculate the compensation due. Payments are
usually mailed in April.
Exemption/Registration
Number Expiry Dates
- Generally, fuel tax exemption and Alberta Farm Fuel
Benefit ("AFFB") registration numbers expire on the date
shown on the application form. However, TRA may extend these dates
beyond their normal expiry when circumstances require.
- The current expiry dates are:
AFFB Registration
Numbers (issued by Alberta Agriculture,
Food and Rural
Development) |
December 31, 2003 |
Fuel Tax Exemption
(TEFU) Numbers (issued by TRA) |
June 30, 2003 |
- TRA and Alberta Agriculture, Food and Rural
Development have procedures in place to notify purchasers that their
exemption or registration numbers are expiring and to invite them to
re-apply for benefits.
- Notwithstanding the above, if a consumer ceases to be
eligible for AFFB or TEFU benefits, the exemption or registration
number expires immediately.
- Customers whose exemption or registration numbers
have expired are no longer eligible to purchase marked fuel.
Information Circular BD-3 sets out what to do if a customer without a
valid exemption/registration number wants to buy marked fuel.
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