Florida amends sales tax exemptions for natural gas, dyed diesel fuel, January 20, 2014.

Florida amends sales tax exemptions for natural gas, dyed diesel fuel, January 20, 2014.

A sales tax exemption for natural and manufactured gas in Florida has been amended. The amendments take effect on January 20, 2014.

Under Florida Administrative Code § 12A-1.059, sales of natural and manufactured gas are exempt from Florida sales tax when they are:

  • Separately metered; and
  • Sold for use in residential households (including trailer lots) directly to the actual consumer by utilities required to pay the gross receipts tax imposed by Section 203.01, F.S.

This exemption also applies to the following fuels, when used by residential households or trailer lots for home heating or home cooking:

  • L.P. gas;
  • Crude oil;
  • Fuel oil;
  • Kerosene;
  • Diesel oil;
  • Coke;
  • Charcoal briquettes;
  • Cord wood; and
  • Other household fuels.

Not exempt

Should any part of the utility or fuel be used for a non-exempt purpose, the entire sale is subject to sales tax.

Other uses of natural gas

Natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment is also exempt when the buyer provides an exemption certificate to the seller.

Dyed diesel fuel

Dyed diesel fuel used in business or trade is subject to use tax unless:

  • The diesel fuel is specifically exempt from sales tax; or
  • The seller collects sales tax on sales to persons who consume the diesel fuel during the course of trade or business.

Sales of dyed diesel fuel are exempt from sales and use tax under the following conditions:

  • The fuel is used for certain agricultural purposes (see Rule 12A-1.087, F.A.C.);
  • Fuel taxes imposed under Chapter 206, F.S. have been paid;
  • The fuel is used exclusively for commercial fishing and aquacultural purposes; or
  • The fuel is purchased or stored for resale.

A partial exemption from sales and use tax is allowed for dyed diesel fuel “used by a licensed common carrier to operate railroad locomotives or vessels used to transport persons or property for hire in interstate or foreign commerce….”

Rule 12A-1.059 includes suggested formats for applicable exemption certificates.

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