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Tax-Free Fuel Available for Municipalities

2017-07-19 09:46:10

The PA Department of Revenue has shared this reminder about the tax-free purchasing and use of liquid fuels (gasoline) and fuels (diesel) for eligible local governments and municipal entities.

Terms

Under the Pennsylvania Consolidated Statutes, Title 75 (Vehicle Code), liquid fuels (gasoline) and fuels (diesel) are tax-free when purchased by a qualifying Political Subdivision for official purposes only. All Political Subdivisions must maintain proper records of receipts and disbursements of all liquid fuels and fuels purchased and used.

Eligible entities include:

  • County
  • City
  • Borough
  • Town
  • Township
  • School District
  • Vocational School District
  • County Institutional District
  • Volunteer Fire Company
  • Volunteer Ambulance Service
  • Volunteer Rescue Squad
  • Second Class County Port Authority
  • Nonpublic School not operated for a profit
The following uses are not permitted for this statute:
  • Personal use by employees of a Political Subdivision or those contracted by the political subdivision
  • Any/All non-official Political Subdivision purposes
  • Political Subdivisions with bulk storage tanks are not permitted to re-sell their procured tax-free fuel for any reason to another business, its employees, or any other person/s
If you have any questions related to the above information, please contact the Bureau of Motor and Alternative Fuel Taxes at 1.800.482.4382, or submit your question(s) at revenue-pa.custhelp.com