Saskatchewan farmers get fuel tax break

REGINA (Nov. 13, 2000) — Effective January 1, 2001, farmers in Saskatchewan will be able to buy bulk gasoline and propane tax-free. With the current exemption on marked diesel fuel for farm use, this effectively eliminates provincial taxation on farm fuel.

Saskatchewan Finance Minister Eric Cline said the change follows up on elimination of the cap on the Farm Fuel Rebate Program announced in this year’s budget. In the past, farm-use gasoline was taxable, but the government provided an annual rebate of up to $900 for tax paid.

To qualify for the fuel tax exemption, an individual must have a Fuel Tax Exemption Permit issued by the Farm Fuel Program and must provide the tax exemption number to the bulk fuel dealer when making a purchase. Information on how to obtain and use a permit can be obtained by contacting 1-800-667-7587.

The new system applies only to bulk fuel purchases. Tax will continue to be paid on gas purchased at retail outlets. However, farmers can apply for a rebate on retail purchases for farm use at the end of each calendar year.