Government of New Brunswick

Disclaimer: This is intended to provide information respecting Gasoline & Motive Fuel Tax under the Gasoline and Motive Fuel Tax Act (the Act). This should not be regarded as a replacement of the laws, regulations or administrative documents to which it refers.

Introduction

In New Brunswick, gasoline and/or motive fuel purchased, acquired, used or consumed is subject to tax. This tax is imposed under the Gasoline and Motive Fuel Tax Act which is administered by the Revenue & Taxation Division of the Department of Finance.

Basic Information on Gasoline and Motive Fuel

Gasoline is any petroleum product :

  • containing any derivative of petroleum, natural gas or coal;
  • having a specific gravity of 0.8017 or under at 60 degrees Fahrenheit (15.6 degrees Celsius);
  • including benzol and any benzol mixture, but;
  • not including manufactured gas, natural gas, bunker fuel, crude oil or propane.

Motive fuel is any gas fuel or liquid fuel:

  • that is not gasoline;
  • that is used for operating an internal combustion engine;
  • or that is used for heating, lighting or preparation of food;
  • but does not include manufactured gas.

Some examples of motive fuel:

  • kerosene
  • propane
  • natural gas
  • crude oil
  • furnace oil
  • stove oil
  • diesel
  • biodiesel
Gasoline and Motive Fuel Tax Rates

The current tax rates are:

  • Gasoline tax -- 15.5 cents per litre;
  • Motive fuel (e.g. diesel) tax -- 21.5 cents per litre;
  • Propane tax -- 6.7 cents per litre;
  • Aviation fuel tax -- 2.5 cents per litre;
  • Locomotive fuel tax -- 4.3 cents per litre.

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Exemptions

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Aquaculturists

(view Aquaculturist's Guide)

Who qualifies as an Aquaculturist?

A person who raises one or more aquatic species or harvests one or more aquatic plants for human consumption for commercial gain, who holds all required valid federal and provincial commercial aquaculture licences or permits and who meets one or more of the following criteria may be determined to be an aquaculturist if the person:

  1. derived an annual gross income of at least $10,000 or at least fifty per cent (50%) of the person's annual gross income from such activity during either of the applicant's two (2) fiscal years preceding the date of the application for a purchaser's permit;
  2. in the case of a fish pond operator, derived income from a sales volume of at least 5,000 fish during either of the applicant's two (2) fiscal years preceding the date of the application for a permit; or
  3. in the case of a start-up operation, demonstrates by means of a three (3) year business development plan approved by the Minister of Agriculture and Aquaculture that the person has invested at least $10,000 in stock and equipment and will be able to derive from the operation an annual gross income of at least $10,000.

How am I identified as an Aquaculturist?

The consumer who meets the above-mentioned criteria is deemed to be an aquaculturist and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the aquaculturist's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the aquaculturist's operations. The aquaculturist is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must also submit, along with the application form (view Purchaser's Permit Application), the following:

  • A copy of a Commercial Fish Farm Permit; or
  • A copy of a Shellfish Permit; or
  • A copy of a Commercial Fish Pond Licence issued by Department of Natural Resources and Energy, Province of New Brunswick; and
    - If this is a first year start-up operation, attach a copy of your three-year business development plan approved by the Minister of Agriculture and Aquaculture.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The aquaculturist's purchaser's permit must be renewed annually. It is the responsibility of the aquaculturist to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, an aquaculturist must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Where can I use tax-exempt motive fuel and in what equipment?


Aquaculturists who qualify for a purchaser's permit may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the operation of:

  • stationary and portable engines used solely and directly in aquaculture; or
  • service boats used solely and directly in aquaculture; or
  • equipment used to provide heat used solely and directly in aquaculture

Please Note:  Aquaculturists may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.

Mandatory Record Keeping

Validly registered aquaculturists consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, an aquaculturist consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the aquaculturist would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the aquaculturist’s ability to challenge the audit results through the Objection & Appeal process.

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Farmers

Who qualifies as a Farmer?  

A person who is registered as a Registered Professional Agricultural Producer with the Department of Agriculture and Aquaculture.

How am I identified as a Farmer?

The consumer who meets the above-mentioned criteria is deemed to be a farmer and may purchase tax exempt motive fuel at point-of-purchase by applying farmer's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the farmer's operations. The farmer is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas; however, the farmer must be registered as a Registered Professional Agricultural Producer (RPAP) with the Department of Agriculture and Aquaculture.

How to apply for the Farmer Purchaser's Permit:

When registering their farm in the Farm Business Registry, applicants will be required to check the box in Section 6 of the Farm Business Registry application form to indicate that they wish to participate in the point of sale motive fuel tax exemption program and obtain the purchaser’s permit endorsement on their card.

Applicants must also complete the Purchaser’s Permit Annual Report and return it along with their application or within two months of the date of application to the Department of Agriculture, Aquaculture and Fisheries. It is recommended to return the completed Purchaser’s Permit Annual Report at the time of registration in the Farm Business Registry to ensure uninterrupted access to the purchase of tax exempt motive fuel.

The "Farmer Purchaser's Permit Annual Report" serves as a means by which the Department of Finance can obtain an annual accounting of the total fuel purchased and consumed by each permit holder. This enables the department to verify if motive fuel purchased tax-exempt is being used in unauthorized areas. It also assists in identifying accounts where fuel is either being misused, or not accounted for properly due to the absence of proper records. In effect, it provides additional control on the exemption program and the consumption of tax-exempt motive fuel.

The Farmer Purchaser's Permit Annual Report is to be completed in its entirety using the purchase records that the farmer is obligated to maintain in accordance with the Gasoline and Motive Fuel Tax Act (see record keeping requirements). The reporting period consists of your most recent fiscal year or a period of 12 consecutive months following the last reported period. Farmers must indicate the total volumes of both taxed and tax-exempt motive fuel purchased during this twelve month period. A farmer choosing not to complete the Farmer Purchaser's Permit Annual Report may be subject to an audit and will be denied the ability to purchase tax-exempt motive fuel.

Renewals

The new purchaser’s permit endorsement will expire October 31, of any given year in conjunction with the expiry date on the RPAP card. Annual renewals of the purchaser’s permit will be made during the renewal of the farm’s registration in the Farm Business Registry

Where can I use tax-exempt motive fuel and in what equipment?

Farmers who qualify for a purchaser's permit may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for the following purposes:

  • operating any equipment, other than a motor vehicle required to be registered under the Motor Vehicle Act (ie. a truck), that is used solely in carrying out agricultural work on farm land;
  • operating a tractor on a public highway while moving the tractor from one place to another or while hauling farm produce or agricultural machinery owned by the owner of the tractor;
  • operating a combine on a public highway while moving the combine from one place to another; or
  • burning blueberry fields.

Please Note: Farmers may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.

Mandatory Record Keeping Requirements

Validly registered farmers consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a farmer consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • the date of each purchase or acquisition of tax exempt motive fuel, tax paid motive fuel and gasoline;
  • the name and address of the person from whom tax exempt motive fuel, tax paid motive fuel and gasoline was purchased or acquired;
  • the number of gallons or litres of tax exempt motive fuel, tax paid motive fuel and gasoline purchased or acquired;
  • the type of tax exempt motive fuel, tax paid motive fuel and gasoline purchased or acquired; and
  • a list of vehicle(s) or equipment into which the tax exempt motive fuel, tax paid motive fuel or gasoline was placed.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. Therefore, the absence of proper records would further compromise the farmer’s ability to challenge the audit results through the Objection & Appeal process.

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Fishers

(view Fisher's Guide)

Who qualifies as a Fisher?

A person who meets one or more of the following criteria may be determined to be a fisher if the person:

  1. holds a valid fishing licence issued by the federal Minister of Fisheries and Oceans and derived
    i. an annual gross income of at least $5,000 from catching fish for commercial gain in either of the person's two (2) fiscal years preceding the date of the application; or
    ii. at least fifty per cent (50%) of the person's annual gross income from catching fish for commercial gain in either of the person's two (2) fiscal years preceding the date of the application.
  2. derived from transporting fish by water for commercial gain from a fishing boat or a herring weir to shore,
    i.  an annual gross income of at least $10,000 in either of the person's two (2) fiscal years preceding the date of the application; or
    ii.  at least fifty per cent (50%) of the person's annual gross income in either of the person's two (2) fiscal years preceding the date of the application.
  3. actually tends the weir or weirs and is the holder or is one of the holders of any and all valid herring weir site permits required by the federal Minister of Fisheries and Oceans; or
  4. in the case of a start-up operation,
    i.  holds a valid fishing licence issued by the federal Minister of Fisheries and Oceans, and
    ii.  has invested at least $10,000 in a fishing boat and equipment.

How am I identified as a Fisher?

The consumer who meets the above-mentioned criteria is deemed to be a fisher and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the fisher's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the fisher's operations. The fisher is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must also submit, along with the application form (view Purchaser's Permit Application), the following:

  • A copy of all fishing licences or permits issued by the federal Minister of Fisheries and Oceans; and
  • If this is a first year start-up operation, show amount invested in fishing boat and equipment by attaching copies of sales invoices obtained at the time of purchase of fishing boat and equipment.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The fisher's purchaser's permit must be renewed annually. It is the responsibility of the fisher to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a fisher must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Where can I use tax-exempt motive fuel and in what equipment?

Fishers who qualify for a purchaser's permit may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the:

  • operation of any vessel while carrying on fishing operations;
  • operation of stationary or portable engines used in the landing of fish on a boat or to a wharf; but
  • not in the operation of a vessel as a chartered boat for sport fishing.

Please Note: Fishermen may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.

Mandatory Record Keeping Requirements

Validly registered fishers consuming tax exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a fisher consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the fisher would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the fisher’s ability to challenge the audit results through the Objection & Appeal process.

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Silviculturists

(view Silviculturist's Guide)

Who qualifies as a Silviculturist?

A person who meets one or more of the following criteria may be determined to be a silviculturist if the person:

  1. cultivates at least two (2) acres of, or at least two thousand (2,000) Christmas trees or landscaping trees or shrubs;
  2. cultivates at least two thousand (2,000) square feet of landscaping trees, shrubs, flowers or bedding plants in a greenhouse;
  3. produces maple products and has at least five hundred (500) taps;
  4. produced at least five (5) acres of sod during the two (2) years preceding the date of the application;
  5. has management recommendations, or a plan, approved by the Minister of Natural Resources and Energy to manage at least twenty-five (25) acres of woodland owned by the person, and, during the two (2) years preceding the date of the application,
    i. thinned or planted at least one (1) acre of the woodland, and
    ii. harvested at least five (5) cords of wood products from the woodland;
  6. owns at least twenty-five (25) acres of woodland and, during the two (2) years preceding the date of the application,
    i. thinned or planted at least five (5) acres of the woodland, or
    ii. harvested at least fifty cords (50) of wood products from the woodland; or
  7. carried out the thinning, planting and tending of at least fifty (50) acres of forest during the applicant's two (2) fiscal years preceding the date of the application and derived
    i. an annual gross income of at least $5,000 in either of those two (2) fiscal years from such activity, or
    ii.  at least twenty per cent (20%) of the person's annual gross income in either of those two (2) fiscal years from such activity.

How am I identified as a Silviculturist?

The consumer who meets the above-mentioned criteria is deemed to be a silviculturist and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the silviculturist's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the silviculturist's operations. The silviculturist is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must also submit, along with the application form (view Purchaser's Permit Application), the following:

  • If the applicant wishes to apply on grounds that they thin, plant, and harvest trees from their own land, a copy of a Management Plan approved by the Minister of Natural Resources must be provided in order to confirm eligibility.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The silviculturist's purchaser's permit must be renewed annually. It is the responsibility of the silviculturist to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a silviculturist must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Where can I use tax-exempt motive fuel and in what equipment?

Silviculturists who qualify for a purchaser's permit may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for use solely in the:

  • operation of a tractor, other than a truck tractor, and any other machinery used for harvesting trees in a logging operation conducted in a forest area or a Christmas tree farm;
  • operation of an unregistered motor vehicle (ie. a truck) while transporting wood products and while not on a public highway; or
  • operation of any equipment used solely and directly in silviculture and not required to be registered under the Motor Vehicle Act.

Please Note: Silviculturists may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.

Mandatory Record Keeping Requirements

Validly registered silviculturists consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a silviculturist consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the silviculturist would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the silviculturist’s ability to challenge the audit results through the Objection & Appeal process.

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Wood Producers

(view Wood Producer's Guide)

Who qualifies as a Wood Producer?

A person who operates a commercial wood harvesting operation involving the felling of trees or the removal of trees from stump to a skidway, log dump or carrier and who meets one or more of the following criteria may be determined to be a wood producer if the person:

  1. harvested or cut an average of at least three hundred (300) cords of wood or the equivalent of at least three hundred (300) cords of wood in either of the applicant's two (2) fiscal years preceding the date of the application;
  2. derived from the operation an annual gross income of at least $5,000 in either of the applicant's two (2) fiscal years preceding the date of the application; and
  3. in the case of a start-up operation, has invested at least $10,000 in wood harvesting equipment.

How am I identified as a Wood Producer?

The consumer who meets the above-mentioned criteria is deemed to be a wood producer and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the wood producer's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the wood producer's operations. The wood producer is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must also submit, along with the application form (view Purchaser's Permit Application), the following:

  • If this is a first year start-up operation, copies of sales invoices obtained at the time of purchase, showing an investment of at least $10,000.00 in wood harvesting equipment must be included with the application must be provided in order to confirm eligibility.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The wood producer's purchaser's permit must be renewed annually. It is the responsibility of the wood producer to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a wood producer must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Where can I use tax-exempt motive fuel and in what equipment?

Wood producers who qualify for a purchaser's permit may use tax-exempt motive fuel or apply for a gasoline and/or motive fuel tax refund (see Refund Section) for the following purposes:

  • operating a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area; or
  • operating an unregistered motor vehicle (ie. a truck) while transporting wood products and while being operated on property other than a public highway.

Please Note: Wood producers may not use tax-exempt motive fuel in any motor vehicle required to be registered under the Motor Vehicle Act.

Mandatory Record Keeping Requirements

Validly registered wood producers consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a wood producer consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the wood producer would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the wood producer’s ability to challenge the audit results through the Objection & Appeal process.

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Forest Workers

(view Forest Worker's Guide)

A person who meets one of the following criteria may be deemed to be a forest worker if:

How am I identified as a Forest Worker?

The consumer who meets the above-mentioned criteria is deemed to be a forest worker and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the forest worker's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the forest worker's operations. The forest worker is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must complete the application form (view Purchaser's Permit Application).

PERSONS UNDER CONTRACT WITH SILVICULTURISTS

Persons who have entered into a contract with a validly registered Silviculturist and who specialize in some aspect of the silviculture process are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

Where can I use tax-exempt motive fuel and in what equipment?

Tax-exempt motive fuel can be consumed if used solely in the operation of

  1. a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area or for harvesting trees on a Christmas tree farm;
  2. an unregistered motor vehicle while transporting wood products and while being operated on a property other than a public highway; or
  3. any equipment, other than a motor vehicle required to be registered under the Motor Vehicle Act, used solely and directly in silviculture.

PERSONS UNDER CONTRACT WITH WOOD PRODUCERS

Persons who have entered into a contract with a validly registered Wood Producer and who specialize in some other aspect of the wood harvesting process, such as operating a slasher or delimber, or equipment for building and maintaining woods roads, are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

Where can I use tax-exempt motive fuel and in what equipment?

Tax-exempt motive fuel can be consumed if used solely in the operation of

  1. a tractor, other than a truck tractor, and any other machinery for the purpose of harvesting trees in a logging operation conducted in a forest area, or
  2. an unregistered motor vehicle while transporting wood products and while being operated on property other than a public highway.

CONSTRUCTION AND MAINTENANCE OF WOOD ROADS FOR THE PURPOSE OF HARVESTING TREES

Persons engaged in the construction and maintenance of woods roads for the purpose of harvesting trees are eligible for the exemption at the point of purchase, as long as they hold a valid forest worker's purchaser's permit and that the motive fuel is consumed in a qualifying area. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

Where can I use tax-exempt motive fuel and in what equipment?

Tax-exempt motive fuel can be consumed if used solely in the operation of an unregistered motor vehicle or any other unregistered machinery or equipment in the construction or maintenance of a woods road for the purpose of harvesting trees in a logging operation conducted in a forest area.

In general, this exemption applies to the following pieces of equipment:

  • dozers;
  • road graders;
  • scarification equipment (used to break up and loosen the surface of the ground);
  • unregistered machinery used to clear stumps, build and level the surface of the roads to remove snow, and maintain ditches, right-of ways and culverts.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The forest worker's purchaser's permit must be renewed annually. It is the responsibility of the forest worker to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a forest worker must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Mandatory Record Keeping Requirements

Validly registered forest workers consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a forest worker consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the forest worker would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the forest worker’s ability to challenge the audit results through the Objection & Appeal process.

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Manufacturers

(view Manufacturer's Guide)

Who is a Manufacturer?

Persons engaged in activities such as making (forming by shaping or putting parts together) goods by hand or especially by machinery, often on a large scale and with division of labour.

How am I identified as a Manufacturer?

The consumer who meets the above-mentioned criteria is deemed to be a manufacturer and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the manufacturer's purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the manufacturer's operations. The manufacturer is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must complete the application form (view Purchaser's Permit Application).

Where can I use tax-exempt motive fuel and in what equipment?

Tax-exempt motive fuel can be consumed if used solely in the operation of

  1. stationary and portable engines other than those mounted on motor vehicles or propelled by motor vehicles;
  2. equipment used to heat materials;
  3. tractors other than truck tractors on property other than a public highway; or
  4. motor vehicles which are not required by the Motor Vehicle Act to be registered under that Act.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The manufacturer's purchaser's permit must be renewed annually. It is the responsibility of the manufacturer to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a manufacturer must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Mandatory Record Keeping Requirements

Validly registered manufacturers consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a manufacturer consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the manufacturer would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise the manufacturer’s ability to challenge the audit results through the Objection & Appeal process.

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Mining or Quarrying Operators

(view Mining/Quarrying Guide)

Who qualifies for the exemption?

Persons engaged in mining or quarrying may consume tax-exempt motive fuel while being used solely and directly in mining or quarrying not carried on in connection with the repair or construction of a public highway or a public bridge.

How am I identified as a person engaged in mining/quarrying?

The consumer who meets the above-mentioned criteria is deemed to be a person engaged in mining or quarrying and may purchase tax exempt motive fuel at point-of-purchase by applying to the Revenue & Taxation Division of the Department of Finance for the mining and quarrying purchaser's permit. Upon obtaining the permit, the qualifying consumer may consume tax exempt motive fuel within a qualifying area of the mine or quarry operations. The person engaged in mining or quarrying is not required to hold a valid purchaser's permit to obtain a refund of the tax paid on gasoline and or motive fuel consumed in any of the qualifying areas however, all legislated criteria mentioned above must be met.

The Application:

The applicant must complete the application form (view Purchaser's Permit Application).

Where can I use tax-exempt motive fuel and in what equipment?

Tax-exempt motive fuel can be consumed if used solely in the operation of diesel powered

  1. self-propelled trucks, which are mounted on rubber-tired wheels, with an unladen gross mass of forty-five hundred kilograms (4500 Kg) or more,
  2. stationary engines,
  3. portable engines, or
  4. tractors other than truck tractors.

Fees

The permit is issued by the Revenue & Taxation Division, Department of Finance and the fee is $12.50 for a one-year registration period.

Renewals

The mining and quarrying purchaser's permit must be renewed annually. It is the responsibility of the person engaged in mining or quarrying to renew the purchaser's permit before the expiry date stated on the permit. In order to renew, a person engaged in mining or quarrying must meet the same criteria as with the initial application, and pay a renewal fee of $12.50.

Mandatory Record Keeping Requirements

Validly registered persons engaged in mining/quarrying and consuming tax-exempt motive fuel must satisfy the obligations imposed upon them through participation in the exemption program and comply with the record keeping requirements set out under the Gasoline and Motive Fuel Tax Act.

Specifically, a person engaged in mining/quarrying consuming tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by staff of Audit and Investigation Services. Failure to maintain proper records could result in fines and penalties and loss of the privilege to purchase tax-exempt motive fuel. In addition, the person engaged in mining/quarrying would be placed at a disadvantage during an audit since the department could assess tax liabilities using estimates. Therefore, the absence of proper records would further compromise this person's ability to challenge the audit results through the Objection & Appeal process.

Registered Vessels Operators

Who qualifies for the exemption?

Persons engaged in the operation of vessels may purchase tax-exempt motive fuel to be used in the operation of a registered vessel within the meaning of the Canada Shipping Act, exceeding two hundred (200) tons gross tonnage but not for use in the operation of a registered vessel that is used for dredging purposes. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

How do I purchase tax-exempt motive fuel?

Vessel operators may purchase tax-exempt motive fuel provided they present a signed certification that the motive fuel is to be used solely and directly in a registered vessel.

Example:

I/we hereby certify that the motive fuel purchased herein is to be used in the operation of a registered vessel within the meaning of the Canada Shipping Act pursuant to paragraph 6(6)(d) of the Act.

Signature ___________________________
Position ____________________________
Date _______________________________

Mandatory Record Keeping Requirements

Vessel Operators who consume tax-exempt motive fuel are obligated to maintain records as follows:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.

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Producers of Electricity for Sale

Who qualifies for the exemption?

Persons engaged in the production of electricity for sale may purchase tax-exempt motive fuel. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

How do I purchase tax-exempt motive fuel?

Producers of electricity may purchase tax-exempt motive fuel provided they present a signed certification that the motive fuel is to be used in the operation of a generator used to produce electricity for sale.

Example:

I/we hereby certify that the motive fuel purchased herein is to be used in the operation of a generator used to produce electricity for sale pursuant to paragraph 6(6)(j.1) of the Act.

Signature ___________________________
Position ____________________________
Date _______________________________
 

Mandatory Record Keeping Requirements

Those people engaged in the production of electricity for sale who consume tax-exempt motive fuel are obligated to maintain records as follows:

Specifically, persons engaged in the production of electricity for sale who consume tax-exempt motive fuel shall keep and maintain records indicating:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.

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Persons consuming fuel in the preparation of food, lighting and heating of premises or heating of domestic hot water

Who qualifies for the exemption?

Persons engaged in the preparation of food, lighting and heating of premises or heating of domestic hot water may purchase tax-exempt motive fuel, provided that it can be verified that the motive fuel storage tanks are connected to or would be reasonably expected to be connected to equipment or apparatus used in the preparation of food, the lighting and heating of premises, or for the heating of domestic hot water. This use must be recorded in the sales records for the customer. They may also apply for refunds of any tax paid on gasoline and/or motive fuel consumed in a qualifying area.

Note: When the tax-exempt motive fuel is picked up at the retail outlet, the fuel usage must be recorded on the sales record (i.e. fuel used to heat a camp, etc.) and a signed certification stating that the fuel is to be used solely and directly in the preparation of food, lighting, heating of premises or heating of domestic hot water must be given to the retail outlet.

Example:

I/we hereby certify that the fuel purchased herein is to be used solely and directly in the preparation of food, lighting, heating of premises or for heating of domestic hot water pursuant to paragraphs 6(6)(i.1) and (j) of the Act.

Signature ___________________________
Position ____________________________
Date _______________________________
 

Mandatory Record Keeping Requirements

Those persons engaged in the preparation of food, lighting and heating of premises or heating of domestic hot water who consume tax-exempt motive fuel are obligated to maintain records as follows:

  • The date of each purchase or acquisition of tax-exempt motive fuel;
  • The name and address of the person from whom the tax-exempt motive fuel was purchased or acquired;
  • The number of gallons or litres of tax-exempt motive fuel purchased or acquired;
  • The type of tax-exempt motive fuel purchased or acquired;
  • The vehicle or equipment into which the tax-exempt motive fuel was placed and the functions performed by that vehicle or equipment; and
  • In instances where the vehicle or equipment is used for both taxable and exempt operations, the number of hours of service dedicated to each function.

Records will be reviewed from time to time by auditors and inspectors. Failure to maintain records as explained above could result in fines or loss of the privilege to purchase tax-exempt motive fuel.

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Gasoline and / or Motive Fuel Tax Refunds

The following is a list of the types of refunds available under the Gasoline and Motive Fuel Tax Act:

Non-Purchaser's Permit Holders:

Aquaculturists, fishers, silviculturists, wood producers, manufacturers, persons engaged in mining/quarrying and forest workers who choose not to obtain a purchaser's permit can also opt to buy their fuel tax paid and subsequently apply for a refund. In order to support a refund claim, these consumers must also maintain the same records prescribed under the Act in the same manner as those consumers holding a valid purchaser's permit.

Most claims are limited to a period of three (3) years from the day on which the overpayment of tax was made. However, claims relating to bad debts are limited to a period of twelve (12) months.

For more information relating to gasoline and / or motive fuel tax refund claims, please contact:

Department of Finance
Revenue & Taxation Division
Tax Program Administration Section
P.O. Box 3000
Fredericton, NB E3B 5H1

Telephone: (800) 669-7070

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Applications - Licences / Permits

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Objection and Appeal

Notice of Objection

Any person who wishes to dispute a tax liability, either the amount of tax paid, or the amount of tax assessed as a result of an audit may do so by filing a Notice of Objection with the Commissioner setting out the reasons for the objection and all relevant facts. The notice must be filed within 30 days after paying the tax or the date of the service or mailing of a Notice of Assessment, whichever is sooner.

Upon receipt of a Notice of Objection, the Commissioner shall within 60 days reconsider the assessment and vacate, confirm or vary the assessment or reassess, and the Commissioner shall thereupon notify the appelant of the action by personal service or by ordinary or registered mail.

Notice of Appeal

Appelants who are dissatisfied with the decision of the Commissioner may, within 30 days after being notified of such decision, file a Notice of Appeal with the Minister of Finance. The Minister shall within 30 days after the receipt of a Notice of Appeal, fix a date to consider the appeal and shall give a notice of such hearing to the appellant and the Commissioner. Upon any such appeal, the Minister may affirm, vary or reverse the decision of the Commissioner and shall give a written notice of his decision to the appellant by personal service or by ordinary or registered mail.

Appeal to The Court of Queen's Bench

Appellants who are dissatisfied with the decision of the Minister may, within 30 days after the date of service or mailing of the notice explaining the Minister's decision, appeal from such decision to a judge of The Court of Queen's Bench of New Brunswick.

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Inquiries

For more information, please contact:

Department of Finance
Revenue & Taxation Division
Tax Program Administration Section
P.O. Box 3000
Fredericton, New Brunswick
E3B 5H1

Telephone: 1-800-669-7070
Fax: (506) 457-7335
E-mail: wwwfin@gnb.ca
Web Site: www.gnb.ca/finance

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