Government of New Brunswick

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

What taxes are imposed on Gasoline, Motive Fuel and Carbon Emitting Products?


The Gasoline, Motive Fuel and Carbon Emitting Product Taxes are administered by the Revenue Administration Division of Finance and Treasury Board.  These provincial taxes are applied to gasoline, motive fuel and carbon emitting products purchased or consumed in New Brunswick, unless there is a specific exemption in the legislation.

The Gasoline and Motive Fuel tax rates are (effective April 1, 2020):

  • Gasoline tax – 10.87 cents per litre,
  • Motive fuel (e.g. diesel) tax – 15.45 cents per litre,
  • Propane tax – 6.7 cents per litre,
  • Aviation fuel tax – 2.5 cents per litre, and
  •  Locomotive fuel tax – 4.3 cents per litre.

The Carbon Emitting Product tax rates are (effective April 1, 2020):

 

Table 1

Product

Rate

Unit

Butane

$0.0534

litre

Diesel fuel

$0.0805

litre

Ethane

$0.0306

litre

Gas liquids

$0.0499

litre

Gasoline

$0.0663

litre

Heavy fuel oil

$0.0956

litre

Light fuel oil

$0.0805

litre

Methanol

$0.0329

litre

Naphtha

$0.0676

litre

Petroleum coke

$0.1151

litre

Pentanes plus

$0.0534

litre

Propane

$0.0464

litre

Coke oven gas

$0.0210

cubic metre

Marketable natural gas

$0.0587

cubic metre

Non-marketable natural gas

$0.0776

cubic metre

Still gas

$0.0810

cubic metre

Coke

$95.39

tonne

High heat value coal

$67.55

tonne

Low heat value coal

$53.17

tonne

Combustible waste

$59.92

tonne

* Kerosene and aviation fuel are not subject to the tax on carbon emitting products.

The products listed above have the same meaning as in section 3 of the Greenhouse Gas Pollution Pricing Act (Canada)

Note: Taxes are subject to change.  For verification of current tax rates, please contact the Revenue Administration Division at (800) 669-7070 or visit the Finance and Treasury Board Web Site at www.gnb.ca/finance.

 

How are the taxes on Gasoline, Motive Fuel and Carbon Emitting Products collected?

The Gasoline and Motive Fuel Tax Act  places the responsibility to pay the tax on the consumer. For simplicity in administration, the tax is collected at the wholesale level. This means that in most cases licensed wholesalers collect an amount equal to the tax on or before delivery of the product to retailers and therefore this tax is included in the price at the pumps.  This process allows for the transfer of the payment of tax to the consumer.

Exception:

Retailers who sell taxed propane collect the tax at time of sale and therefore must remit the tax to the Province  (see Reporting).

Who Must Obtain a Gasoline, Motive Fuel and Carbon Emitting Product Retailer Licence?


Any person (which includes individuals, partnerships or corporations) who wishes to purchase gasoline, motive fuel or carbon emitting products in the province for the purpose of resale to consumers must obtain a Gasoline, Motive Fuel and Carbon Emitting Product Retailer Licence (Retailer Licence).  This includes persons wishing to sell from fixed locations as well as from tank-trucks.

Licence Application

Applications may also be completed and submitted online by accessing the Service New Brunswick website at: www.snb.ca. Please be advised that payment with a credit card is restricted to online submissions.

Application forms can be obtained online at the following addresses:

  • Finance and Treasury Board at: www.gnb.ca/finance and click on “Forms” or
  • Service New Brunswick at: www.snb.ca and click on “Forms by Department”.

If you are unable to obtain an application form online, contact the Finance and Treasury Board at 1-800-669-7070, Monday to Friday, 8:15 a.m. to 5 p.m.

Licence Fee

The fee for the Retailer Licence is $150 plus $25.00 per dispensing nozzle for persons selling from either fixed pumps or tank trucks.  All licenses expire on May 31st of each year and must be renewed annually at which time a renewal fee based on $25.00 per dispensing nozzle must be paid. Licences are location specific and any vendor operating multiple locations will require separate licences for each location. 

Security

Bonding may be required for retailers who sell taxed propane.

Licence Rules

  1. The Revenue Administration Division must be notified of any changes with regard to the address, contact persons or officers of the licensee;
  2. A Retailer Licence is not transferable from one location to another;
  3. Retailer Licence cannot be transferred from one person to another; and
  4. Gasoline, motive fuel and carbon emitting product storage facilities must have a valid NB Petroleum Storage Site licence (available from the Department of Environment and Local Government).

Rejection of a Licence

The Minister may refuse to issue any licence if the Minister has reasonable or probable grounds to believe that the applicant has:

 

  1. failed to deposit satisfactory security as required;
  2. been convicted of a violation of a provision of the Gasoline and Motive Fuel Tax Act or any provision relating to gasoline, motive fuel or carbon emitting products in any other Act;
  3. failed to comply with any term or condition imposed on a licence previously issued; or
  4. had a licence previously issued revoked during the previous five years.

Suspension of a Licence

The Minister may suspend a licence for a period of time established by regulation if the Minister has reasonable and probable grounds to believe that the licence holder has violated or is failing to comply with the Act or Regulations or with any term or condition of the licence.

Suspensions will be for one calendar month for first time violators. For each subsequent suspension, the suspension will be double the number of months for which that licence or permit was suspended in the previous suspension.

Revocation of a Licence

The Minister may revoke any licence if the Minister has reasonable and probable grounds to believe that the licence holder has violated or is failing to comply with the Act or Regulations or with any term or condition of the licence. This is an involuntary cancellation of a licence and in order to sell gasoline, motive fuel or carbon emitting products again the applicant must reapply and meet all licensing conditions.

Cancellation of a Licence

Cancellation of a licence occurs as a result of a voluntary closure or sale of a business. Cancellation must be done in writing.

The licence holder must also notify the Finance and Treasury Board when the retailer’s business is sold because the previous owner’s Retailer Licence must be cancelled before a new licence can be issued to the new proprietor.

Reinstatement of a Licence

The Minister may reinstate any licence and may impose any combination of conditions and terms established in accordance with the regulations. For example, the Minister may request that an audit be conducted prior to reinstatement.  (A new application must be submitted and the fee must be paid.)

Purchase and Sales Rules

Purchase Rule:

  1. To ensure that the appropriate taxes are paid on gasoline, motive fuel and carbon emitting products sold at retail, retailers are permitted to purchase only from wholesalers licensed in New Brunswick.

Note: A list of all licensed wholesalers in the province is sent with the applicant’s Retailer Licence.  The Wholesaler Licence can also be verified with the Revenue Administration Division at (800) 669-7070.

Sales Rules:

  1. No retailer shall sell or keep for sale gasoline, motive fuel or carbon emitting products at any outlet unless he is the holder of a retailer's licence for that outlet;
  2. No retailer shall sell, or keep for sale, tax exempt motive fuel or tax exempt carbon emitting products unless authorized to do so by a retailer's licence;
  3. No retailer shall sell gasoline, motive fuel or carbon emitting products to other resellers (retailers or wholesalers); and
  4. No retailer shall sell tax exempt motive fuel or tax exempt carbon emitting products to anyone not authorised to purchase tax exempt motive fuel or tax exempt carbon emitting products.
  5. All retailers are required to issue sales invoices which indicate the type of fuel or carbon emitting product purchased, the amount, the applicable taxes and the price. Please be advised the tax on carbon emitting products must be a separate line item on the invoice and cannot be combined with any other applicable tax/fee.


Note:  Failure to issue accurate invoices/receipts may result in fines and penalties for the retailer.  Continued failure to correct the issue may also lead to suspension and/or revocation of the Retailer Licence.
 

Tax Exempt Motive Fuel

Effective April 1, 1998 New Brunswick introduced a marking program for tax exempt diesel fuel, stove oil and furnace oil so as to distinguish it from taxed motive fuel. In order to ensure proper distribution of the tax exempt products, retailers must continue to maintain separate storage facilities for exempt (dyed) motive fuel.

Tax Exempt Sale Requirements

Effective April 1, 1998 New Brunswick introduced a marking program for tax exempt diesel fuel, stove oil and furnace oil so as to distinguish it from taxed motive fuel. In order to ensure proper distribution of the tax exempt products, retailers must continue to maintain separate storage facilities for exempt (dyed) motive fuel.

a. Aquaculturists / Fishers / Farmers / Silviculturists / Wood Producers / Forest Workers / Manufacturers / Persons engaged in Mining and Quarrying

Individuals who fall within the above mentioned classes may purchase tax exempt motive fuel and/or tax exempt carbon emitting products, provided they present a valid Purchaser's Permit issued by Finance and Treasury Board or in the case of farmers, a valid Registered Professional Agriculture Producer (RPAP) number with a P notation.

Where a retailer makes a tax exempt sale to any of the above mentioned purchasers, the retailer must ensure that both the Purchaser’s Permit number and the expiry date of the permit are recorded on the sales invoice.

b. Operation of Vessels

Persons engaged in the operation of vessels may purchase tax exempt motive fuel and/or tax exempt carbon emitting products, provided they present a signed certification that the fuel or carbon emitting product is to be used in the operation of a registered vessel within the meaning of the Canada Shipping Act, exceeding two hundred tons gross tonnage but not for use in the operation of a registered vessel that is used for dredging purposes.

Example:

I/we hereby certify that the motive fuel and/or tax exempt carbon emitting product 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 _______________________________

c. Production of Electricity

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

Note:  The above exemption refers only to the Motive Fuel tax and is not eligible to be exempt of the tax on carbon emitting products.

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 _______________________________

d. Preparation of Food, Lighting and Heating of Premises or Heating of Domestic Hot Water

Persons engaged in the preparation of food, lighting and heating of premises or heating of domestic hot water may purchase tax exempt motive fuel.

In addition to the exemptions provided for under subsection 6.3(10); diesel fuel, light fuel oil and propane may also be purchased, acquired, used or consumed exempt of the tax on carbon emitting products in accordance with section 6.3(11) of the Gasoline and Motive Fuel Tax Act for the following purposes:

  1. Preparation of food;
  2. Heating and lighting of premises;
  3. Heating water for domestic use.

The exemption of the taxes is applied provided that it can be verified that the 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.

Please be advised that natural gas is not eligible for an exemption of the carbon emitting product tax.

Note: When the tax exempt diesel fuel, light fuel oil and propane are 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 obtained from the customer.

Example:

I/we hereby certify that the fuel and/or carbon emitting product 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 _______________________________

e) Large Emitters / Covered Facilities

Covered facilities currently registered under the federal output-based pricing system will be required to contact the Department to obtain a Large Emitters Purchaser’s Permit under the Gasoline and Motive Fuel Tax Act.  This will allow these facilities to purchase and consume tax exempt motive fuel and/or tax exempt carbon emitting products.
 

Record Keeping Requirements

Every retailer who sells gasoline, motive fuel or carbon emitting products shall keep and maintain the following:

a)    Records showing the retailer’s inventories of gasoline, motive fuel and/or carbon emitting products, including:

  • daily beginning and ending metre readings for each pump from which gasoline, motive fuel and/or carbon emitting products are dispensed, and
  • daily stock on hand (number of litres, or the appropriate unit of measurement) for each type of gasoline, motive fuel and/or carbon emitting products on hand at the beginning of each day.

b)  Records to substantiate all purchases of gasoline, motive fuel and/or carbon emitting products, including:

  • name and address of the wholesaler from whom the products are purchased,
  • dates of the purchases, and
  • number of litres, or appropriate unit of measurement, of each type of gasoline, motive fuel and/or carbon emitting products purchased.

c)  Records to substantiate all sales of tax exempt gasoline, motive fuel and/or carbon emitting products, including:

  • the name and address of each person to whom the retailer sold tax exempt gasoline and motive fuel and/or tax exempt carbon emitting products,
  • date of each sale,
  • number of litres, or appropriate unit of measurement, of each type of tax exempt gasoline, motive fuel and/or tax exempt carbon emitting products sold in each sale,
  • the location to which each sale was delivered, and
  • a record of each purchaser’s authorization to purchase tax exempt fuel and/or tax exempt carbon emitting products, including any applicable licence, permit numbers or signed certification.

d)  Copies of the purchase invoices for every purchase of gasoline, motive fuel and/or carbon emitting products from a wholesaler.

Maintenance of Records

Records must be maintained in easily readable paper or electronic format for six years or until such time that authorization is received in writing from the Provincial Tax Commissioner.

Availability of Records

Records shall be made available for inspection by an inspector or an auditor or any person designated by the Commissioner upon request at any reasonable time.

Reporting

Retailers are not required to collect and report tax on sales of gasoline, motive fuel or carbon emitting products as the applicable tax is paid directly to the wholesaler upon purchase. However, retailers licensed to sell propane are required to collect the applicable taxes (see How are the taxes on Gasoline, Motive Fuel and Carbon Emitting Products collected) when the propane is being purchased by individuals for uses other than for cooking (i.e. barbecues), or heating. Examples: propane used for heating tar for roofing, for operating a forklift at a retail site, etc.

Propane tax, and applicable carbon emitting product tax, must be reported monthly through tax returns and schedules.  Propane reports are to be submitted by the 25th of each month reporting for the previous month (e.g. Report for January must be submitted by February 25th).

All taxable propane retailers who report on propane volumes resulting in a tax remittance of less than $2,500 in the preceding calendar year will have the option to file their propane tax return annually rather than the current monthly requirement.  Retailers that qualify for annual reporting will be notified in writing.

Qualifying retailers who take advantage of the annual return reporting option will be required to submit their returns by the 25th day of January, following the year being reported (e.g. Return for 2018 must be submitted by January 25th of 2019).
 

Audit and Inspection

Under subsection 30(1) of the Gasoline and Motive Fuel Tax Act and sections 28 and 29 of the Revenue Administration Act, any appointed officer, auditor, inspector or any other person with the written authority of the Minister or the Commissioner may enter upon the premises of any person in which any business involving the sale, use or consumption of aviation fuel, gasoline, motive fuel or carbon emitting products is carried on in order to:

  1. Ascertain the amount of tax payable, or the money remissible by any person;
  2. Inspect or examine books, records, documents, engines, machinery and premises to ascertain the quantities of aviation fuel, gasoline, motive fuel and/or carbon emitting products bought or sold by the retailer during any period to which reference is made in a return required to be made under the Gasoline and Motive Fuel Tax Act;
  3. Ascertain whether the person has had in his possession tax exempt motive fuel and/or tax exempt carbon emitting products, or gasoline, motive fuel and/or carbon emitting products in respect of which the tax is payable, and to make tests or take samples thereof; 
  4. Require the owner or manager of the property or business and any other person on the premises or place to give him/her all reasonable assistance with the audit or examination and to answer all proper questions relating to such audit or examination
  5.  Seize any books of account, records, documents or other papers which is discovered during an audit or examination which the inspector or auditor believes on reasonable ground may provide evidence of the commission of an offence under a revenue Act

The owner, occupier or person in possession or in charge of the premises so entered shall answer all questions relating to any of the matters stated above, and shall produce for inspection such books, records, documents, barrels, tanks or receptacles as required.

Any retailer found in violation of the Act may be subject to:

  1. An official warning
  2. Tax assessment
  3. Fines
  4. Penalties
  5. Seizure of gasoline, motive fuel and carbon emitting products
  6. Suspension of licence
  7. Revocation of licence

Administrative Penalties

The following schedule provides information on the administrative penalties that are applicable to retailers for violations under the Gasoline and Motive Fuel Tax Act:

 

Violation Administrative Penalty
Failure to issue an accurate invoice.

 

1st Offence $140
2nd Offence $280
3rd & Subsequent $640

 

Retailing without a valid license.

 

1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

Retailing exempt fuel without a valid retailer license.

 

1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

A retailer who refuses or neglects to collect the tax.

 

1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

A retailer who refuses or neglects to produce for inspection, any books, records, documents, certificates, permit or other things that the person is required to produce. 1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

A retailer who refuses or neglects to make any return or report required. 1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

A retailer purchasing from a wholesaler that does not possess a valid license. 1st Offence $240
2nd Offence $480
3rd & Subsequent $5,200

 

Please note that continued failure to comply with the provisions of the Gasoline and Motive Fuel Tax Act and regulations is cause for a retailer’s licence to be revoked.

The Department will not renew a licence where a retailer has any of the following:

  1. Delinquent return(s);
  2. An outstanding balance on an account, where acceptable payment arrangements have not been made, or are not being honored; or
  3. An unpaid administrative penalty.

In addition, the Department may revoke or suspend licences where the conditions of the licence have not been met.  Re-instatement of a licence following a revocation will include additional fees, terms and conditions.

Objection and Appeal

Notice of Objection

Retailers wishing to dispute the liability for the amount assessed against them, may file 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 retailer of the action by personal service or by ordinary or registered mail.

Notice of Appeal

Retailers 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 and Treasury Board.  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 the decision to the appellant by personal service or by ordinary or registered mail.

Appeal to The Court of Queen's Bench

Appellants 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.

 

Definitions
Aviation Fuel Any gas or liquid that is sold to be used or is used to create power to propel an aircraft and includes any product that is designated to be aviation fuel by the regulations.
Carbon Emitting Product Any product listed in Table 1
Carbon Emitting Product Pump, Gasoline Pump/Motive Fuel Pump A tank or receptacle of not less than 50-gallon or 227-litre capacity that is used or intended to be used for the storage of a carbon emitting product, gasoline or motive fuel, as the case may be, and is equipped with a pump for dispensing the carbon emitting product, gasoline or motive fuel.
Commissioner The Provincial Tax Commissioner provided for under the Revenue Administration Act and includes those persons designated by the Minister of Finance and Treasury Board to act on behalf of the Provincial Tax Commissioner.
Consumer A person who, within the Province, purchases, receives delivery of, or otherwise acquires possession of aviation fuel, gasoline, motive fuel or a carbon emitting product for personal use or for the use of another person at the other person’s expense or who uses or consumes aviation fuel, gasoline, motive fuel or a carbon emitting product in any manner and includes a purchaser.
Gasoline

For the purpose of the Gasoline Tax, gasoline has the same meaning as in section 1 of the Gasoline and Motive Fuel Tax Act.

For the purpose of the Carbon Emitting Product Tax, gasoline has the same meaning as in section 3 of the Greenhouse Gas Pollution Pricing Act (Canada)

 

Locomotive Fuel Motive fuel used for the operation of railway locomotives and equipment attached directly to the same fuel supply system that services the railway locomotive.  This motive fuel and/or carbon emitting products are taxed at a reduced rate (refer to Gasoline and Motive Fuel Tax Rates).
Marked Motive Fuel Tax exempt diesel fuel, stove oil or furnace oil to which a dye has been added in accordance with the regulations. Cocktail mix means concentrated dye properly diluted with stove oil or kerosene.
Minister The Minister of Finance and Treasury Board and includes the Commissioner and those persons designated by the Minister of Finance and Treasury Board to act on behalf of the Minister of Finance and Treasury Board or on behalf of the Commissioner.
Motive Fuel

Any gas fuel or liquid fuel that is not gasoline and that can be used for moving or operating any internal combustion engine or for heating.

Some examples of motive fuel are: kerosene, propane, natural gas, crude oil, furnace oil, stove oil, diesel distillite, and other motor fuel but does not include manufactured gas that is used as a fuel.

Purchaser's Permit A permit that is issued under the Gasoline and Motive Fuel Tax Act and that has not expired or been suspended, cancelled or revoked.
Retailer A person who keeps for sale or sells to a consumer, gasoline, motive fuel or a carbon emitting product.
Wholesaler

A person who sells or keeps for sale, gasoline, motive fuel or a carbon emitting product, to a person other than a consumer.

Inquiries

All inquiries should be directed to:

Finance and Treasury Board
Revenue Administration Division
P.O. Box 3000
Fredericton, New Brunswick
E3B 5G5
 

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

Legislation:

New Brunswick Acts and Regulations may be accessed on the Department of Justice web site (www.gnb.ca/justice) or copies can be purchased from the Queen's Printer.