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Tax and Revenue Administration
Fuel Tax Act
Special Notice Vol. 1 No. 36


Released: March 26, 2015
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

Vol. 1 No. 36 / March 2015

FUEL TAX ACT SPECIAL NOTICE:
FUEL TAX INCREASE

NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.

As part of Budget 2015, Alberta will increase its fuel tax rates effective 12:01 a.m. on March 27, 2015. The new rates will be as follows:

  • Gasoline and diesel: $0.13 per litre
  • Liquefied petroleum gas (propane): $0.094 per litre
  • Renewable diesel and renewable alcohol: $0.13 per litre
  • Other prescribed fuels, including bunker fuel, kerosene, methanol and condensate, used to generate motive power by means of an internal combustion or turbine engine: $0.13 per litre

Fuel tax applies to renewable diesel, renewable alcohol, and the above-noted other prescribed fuels only if they are used to generate motive power.

The rate for aviation fuel and locomotive fuel has not increased and remains at $0.015 per litre.

Marked Fuel

The exemption of tax on marked fuel, including the exemptions provided under the Tax Exempt Fuel User (TEFU) and Alberta Farm Fuel Benefit (AFFB) programs administered by Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA), will be capped at $0.09 per litre. Therefore, fuel used in unlicensed vehicles and equipment that was previously tax-out for eligible off-road activities, farming operations or for use in licensed farm vehicles, will now be taxed at $0.04 per litre for gasoline and diesel. Full direct remitters should charge and remit $0.04 per litre on fuel that is dyed after 12:01 a.m. on March 27, 2015. All other marked fuel vendors currently approved by TRA to dye fuel should charge $0.04 per litre on fuel that is dyed after 12:01 a.m. on March 27, 2015, and TRA will process your rebrand claim accordingly.

Returns

The change in the tax rates results in the requirement to file two returns for March 2015, including one return for the period March 1, 2015 to March 26, 2015, and a second return for the period March 27, 2015 to March 31, 2015. The second return should reflect the new rates, including the new rate of $0.04 per litre on marked fuel, if applicable.

Full direct remitters, propane distributors, renewable fuel resellers and fuel importers should file both of their respective March returns with TRA by the 28th day after the end of the month (by April 28, 2015). Copies of returns can be found on the Fuel Tax Publications & Forms page on our website.

Please note that remittance requirements for the respective fuel tax remain the same.

Refunds

A fuel recipient, for example an independent fuel seller, may apply to TRA for a refund of all or part of fuel tax paid in various circumstances, as set out in Information Circular FT-6, Tax Refunds. Similarly, propane retailers may apply to TRA for a refund of the tax paid by them on all propane sold tax-out to consumers, as set out in Information Circular PRO-2, Tax Refunds to Propane Retailers for Tax-out Sales. Refunds will be paid based on the tax rate at which the fuel was purchased by the recipient. On receipt of a refund application, TRA will review the application and may ask for additional information, such as fuel purchase orders, to determine the applicant's eligibility and the proper claim amount.

Further information specific to AITE retailers has been provided in a separate Special Notice to AITE Exempt Sale Retailers in respect of the Fuel Tax Rate Increase.

Additional Information

Click here for frequently asked questions and answers relating to the implementation of the fuel tax rate changes for the various fuel suppliers. Fuel suppliers may email any further questions to TBF.fueltax@gov.ab.ca.


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