Fuel Tax - NEW Fuel Tax Act
Fuel Tax Overview
Information for Businesses Affected by Flooding: Waiver of Tax Penalties and Interest - posted June 25, 2013
Penalties and interest will be waived where a corporation or business was unable to comply with legislated tax filing or payment requirements due to flooding. This also includes the tourism levy. Businesses must submit their Alberta tax return and make their tax payment as soon as they are able to do so. More information can be found in Tax and Revenue Administration Special Notice Vol. 8 No. 3, Waiver of Penalties and/or Interest – Natural Disasters.
Effective June 17, 2013, propane retailers will be required to file propane tax refund claims using the web-based TRA Client Self-serve (TRACS) system as the interactive voice response (IVR) method will no longer be available.
- Although you cannot submit a claim using TRACS before June 17, 2013, please enrol now so you are ready to file a claim on or after June 17, 2013. If you have any questions regarding TRACS enrolment, please contact Lana McInnes at 780-644-4179. For toll-free calls within Alberta, dial 310-0000, then 780-644-4179.
- For more information, please see Tax and Revenue Administration's information circular PRO-2R2, Tax Refunds to Propane Retailers for Tax-out Sales.
TRA is seeking feedback on a proposal to allow fuel marking below the terminal / rack. TRA does not currently sanction dyeing of fuel below the rack at terminals. Under the new directive, however, TRA may authorize approved distribution facilities to conduct this activity subject to specific criteria. Please review the document Fuel Seller Consultation: Proposed Criteria for Dye Point Location Approval. Please respond by emailing either Ben DeBoer or TRA Fuel by end of day April 26, 2013 with any feedback.
The Farm Fuel Distribution Allowance portion of the Alberta Farm Fuel Benefit Program has been discontinued, effective 3:15 p.m. on March 7, 2013.
The 6-cent-per-litre Farm Fuel Distribution Allowance was applied to marked diesel, marked renewable diesel and heating fuel for eligible farming operations.
Eligible producers who are participating in the Alberta Farm Fuel Benefit Program will continue to receive this 9-cent-per-litre provincial tax exemption on marked gasoline and diesel.
The administration and application process for the Farm Fuel Benefit Program remain unchanged. Producers will retain their farm fuel numbers and farm plates as long as they continue to be eligible. Eligibility must be renewed every three years.
Additional information about the change is available online at http://www.agric.gov.ab.ca, or by contacting the Ministry of Agriculture and Rural Development’s Edmonton office by emailing AFFB@gov.ab.ca or calling 780-422-9167 (toll-free by first dialing 310-0000).
Effective 12:01 a.m., February 25, 2011, the Tax Exempt Fuel Use (TEFU) rebate for licensed vehicles, including Prescribed Rebate Off-road Percentages (PROP), is eliminated. The marked fuel (tax excluded) component of TEFU, the Alberta Farm Fuel Benefit, and the Alberta Farm Fuel Distribution Allowance are not affected by this change. For details see:
- Special Notice Vol. 1 No. 31, 2011 Budget Change - Tax Exempt Fuel Use (TEFU) Rebate
- Questions and Answers
A new Fuel Tax Act was passed in the 2006 spring session of the Alberta Legislature. Along with the approval of the Regulation, the Act was proclaimed on March 21, 2007. All provisions under the Act and both Regulations took effect on April 1, 2007. Information circulars and other publications have been revised to reflect this change. To view publications and forms under the new Act and Regulations, see Fuel Tax Act - NEW. To view publications and forms under the old Fuel Tax Act, see Fuel Tax Act - OLD.
Tax and Revenue Administration (TRA), Alberta Treasury Board and Finance, administers the Act, which currently provides for the following:
- collection of fuel taxes on gasoline, diesel, and aviation fuel;
- payment of aviation fuel tax rebates;
- collection of fuel taxes on propane (LPG) used as motive fuel or dispensed from an automotive dispensing system;
- collection of fuel taxes from railways;
- reallocation of fuel taxes collected based on pro-ration under the International Fuel Tax Agreement (IFTA), including settling accounts with all member jurisdictions;
- payment of fuel tax refunds to propane retailers for tax-exempt sales;
- administration of fuel tax exemption under the Tax Exempt Fuel User (TEFU) program, including payment of rebates under the program;
- provision of farm fuel benefits, including payment of fuel tax refunds and grants, under the Alberta Farm Fuel Benefit (AFFB) program;
- administration of fuel tax exemption under the Alberta Indian Tax Exemption (AITE) program, including the payment of refunds under the program.
The Alberta Fuel Tax Act is a direct tax on consumers for the purchase of all unmarked fuel in Alberta. This includes gasoline, diesel and propane, except where the fuel is delivered and consumed outside Alberta.
Tax Exempt Fuel Use (TEFU)
Alberta provides tax exemptions and rebates on fuel used off-road for commercial purposes.
Prescribed Rebates Off-road Percentages (PROP)
Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA) and several industry sectors have agreed to simplify administration of the Tax Exempt Fuel Use (TEFU) program. These industry sectors include those entities involved in oil and gas drilling, production, and servicing, in oil and gas geophysical or seismic exploration, and in forestry. The simplified process, known as Prescribed Rebates Off-road Percentages (PROP), uses prescribed rebate percentages based on activity and type of vehicle/equipment, for rebate calculations and claims.
Alberta Farm Fuel Benefit Program
This program reduces the cost of fuel used in farm vehicles by eligible Alberta farmers, providing an exemption from the fuel tax of nine cents per litre on both diesel and gasoline.