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| Reminder to Use Fuel Sellers who issue tax exempt cards for use at Oregon non-retail (cardlock) facilities | ||
| 01/10/2006 | ||
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As a result of the law change in July 2004, use fuel sellers are required to collect the Oregon use fuel tax on their customer’s purchases at Oregon non-retail (cardlock) sites. If the seller does not collect the Oregon use fuel tax (currently $.24 per gallon) on sales of diesel (and other use fuels – biodiesel, propane, etc), the seller must have a completed exemption certificate on file from the customer. If the seller does not have a completed exemption certificate on file from the customer, the seller is liable for the tax. Recent audits have revealed that some sellers do not consistently obtain an exemption certificate which is valid at the time of the sale. The exemption certificate becomes valid for sales made on or after the date signed. Link to Exemption Certificate Form For example, the seller has an exemption certificate on file from the customer dated and signed April 1, 2005. However, the seller made tax exempt sales to the customer during the period July 1, 2004 through March 31, 2005. There was no exemption certificate on file at the time those sales were made. Since the seller had no exemption certificate on file when the sales were made, the seller is liable for the use fuel tax for the period July 1, 2004 through March 31, 2005. In this example, the seller’s liability for the use fuel tax ends for sales made on or after April 1, 2005. The customer will be liable for the use fuel tax for their purchases made on or after April 1, 2005. We strongly encourage all Use Fuel Sellers who issue tax exempt cards for use at Oregon cardlocks to obtain exemption certificates from their customers BEFORE the tax exempt sales are made. This may avoid an audit assessment to the seller for the period prior to the date of the exemption certificate. If you have any questions, please contact the Fuels Tax Group. |
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