Florida Sales Tax Rules
12A-1.059 Fuels
(1)(a) The sale of fuel, including crude oil, fuel oil, kerosene, sterno, diesel oil, natural and manufactured gas, coke, charcoal briquets, cord wood, and other fuel products is taxable. Natural and manufactured gas is exempt when separately metered and sold for use in residential households (including trailer lots) directly to the actual consumer by utilities who are required to pay the gross receipts tax imposed by Section 203.01, F.S. The exemption for residential households (including trailer lots) also includes L. P. gas, crude oil, fuel oil, kerosene, diesel oil, coke, charcoal briquets, cord wood, and other household fuels. Such sales of utilities and fuels are exempt regardless of whether such sales are billed to the landlord; provided, however, that if any part of the utility or fuel is used for a non-exempt purpose, the entire sale is taxable. Landlords shall provide separate meters for any non-exempt consumption of utilities or fuels. This exemption shall also apply to the sale of utilities and fuels used in residential model homes or common areas of apartments, cooperatives, and condominiums provided that none of the utilities or fuels are used in residential model homes which are used as sales offices or for other non-exempt purposes. No exemption certificate or affidavit is required to be obtained by a dealer of special fuel or a dealer of liquefied petroleum gases when the fuel is sold and delivered into the customer’s storage facility located on the customer’s residential premises, when the fuel is for the purposes of home cooking or home heating. Hotels and motels cater primarily to transient guests and are not considered to be residential households. Therefore, this exemption shall not apply to utilities or fuels sold for use in hotels and motels.
(b) The charge for the filling of liquefied petroleum (L.P.) gas tanks, including tanks used in recreational vehicles, is exempt when the L.P. gas will be used by the purchaser for the purposes of residential heating, cooking, lighting, or refrigeration. The dealer must document on the customer’s invoice or other written evidence of sale that the charge is for filling a L.P. tank with the gas sold for the purposes of residential household cooking, heating, lighting, or refrigeration.
(2)(a) “Boiler” fuels. When purchased as a combustible fuel, purchases of natural gas, residual oil, recycled oil, waste oil, solid waste as defined in Section 403.703(35), F.S., coal, sulfur, hydrogen, wood, wood residues, or wood bark used in an industrial manufacturing, processing, compounding, or production process at a fixed location in this state is exempt. For the purpose of this exemption, the term “residual oil” means ASTM Grades No. 5 and No. 6, heavy diesel, and bunker C. This exemption does not apply to any type of liquefied petroleum gases, naphtha, kerosene, or distillate fuel oil, such as diesel fuels, No. 1 and No. 2 heating oils, and No. 4 fuel oil. The term “fixed location” means being permanently affixed to one location or plant site, or any portable plant which may be set up for a period of not less than six months in a stationary manner so as to perform the same industrial manufacturing, processing, compounding, or production process that could be performed at a permanent location or plant site. To be entitled to this exemption at the time of purchase, the purchaser must issue the seller a certificate stating that the combustible fuel is used in an industrial manufacturing, processing, compounding, or production process. The following is a suggested format of a certificate to be used for this purpose:
SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE
BOILER FUELS USED TO PRODUCE TANGIBLE PERSONAL PROPERTY FOR SALE
I, the undersigned individual, hereby certify that I am the purchaser or the purchaser’s agent or representative authorized to act for ________________________ (PURCHASER) in the purchase of boiler fuels. The purchases of natural gas, residual oil, recycled oil, waste oil, solid waste as defined in Section 403.703(35), Florida Statutes, coal, sulfur, hydrogen, wood, wood residues, or wood bark from _______________________________ (SELLER) under account number __________ will be exclusively used as a combustible fuel in the manufacturing, processing, compounding, or production of tangible personal property for sale. This industrial process is located at ____________________________ (ADDRESS) in _______________, Florida.
I further certify that_____________________ (PURCHASER) is not subject to regulation by the Division of Hotels and Restaurants, Department of Business and Professional Regulation, and the purchase of combustible fuel as identified in this certificate is exempt from sales and use tax as provided in Section 212.08(7)(b), Florida Statutes.
I understand that if I fraudulently issue this certificate to evade the payment of sales and use tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third-degree felony.
Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated in it are true.
____________________________________________________________
Signature of Purchaser or Purchaser’s Agent or Representative
___________________________________________
Title
_____________________
Date
(b) The sale of boiler fuels that are not used in manufacturing, processing, compounding, or producing items of tangible personal property for sale is subject to tax. The sale of boiler fuels used by any firm subject to regulation by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation is subject to tax.
Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees; Rules 12A-1.087 and 12B-5.130, F.A.C.
(3)(a) Natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment is exempt. To purchase natural gas used for this purpose tax-exempt, the purchaser is required to provide an exemption certificate to the selling dealer declaring that the natural gas will be used to generate electricity in a non-combustion fuel cell used in stationary equipment. The following is a suggested format of a certificate:
EXEMPTION CERTIFICATE
NATURAL GAS USED TO GENERATE ELECTRICITY
IN A NON-COMBUSTION FUEL CELL USED IN STATIONARY EQUIPMENT
I certify that natural gas purchased on or after _____________________________________ (Date) from ________________________ (Selling Vendor’s Name) will be used to generate electricity in a non-combustion fuel cell used in stationary equipment.
I understand that if I use the purchased natural gas for any nonexempt purpose, I must pay tax on the purchase price of the natural gas directly to the Florida Department of Revenue.
I understand that if I fraudulently issue this Certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax, plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony.
Under the penalties of perjury, I declare that I have read the foregoing Certificate and the facts stated herein are true.
__________________________________________________
SIGNATURE OF PURCHASER OR AUTHORIZED AGENT
_______________________
TITLE OR DESIGNATION
_________________
DATE
(4)(a) Dyed diesel fuel used in a trade or business is subject to use tax. Every person who uses dyed diesel fuel in a trade or business is required to register as a dealer to remit use tax due on the total cost price of the fuel consumed, unless:
1. The diesel fuel is specifically exempt from sales tax; or
2. The dealer selling diesel fuel has elected to collect sales tax on sales to persons who use or consume the diesel fuel in a trade or business.
(b) The following sales or purchases of diesel fuel are exempt from sales and use tax:
1. Fuel upon which the fuel taxes imposed under Chapter 206, F.S., have been paid;
2. Fuel used for certain agricultural purposes, as provided in Rule 12A-1.087, F.A.C.; and,
3. Fuel purchased or stored for purposes of resale.
(5) 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 is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax is based on the mileage apportionment factor of the licensed carrier or vessel owner or operators. Dyed diesel fuel used exclusively for commercial fishing and aquacultural purposes is exempt. See Rules 12A-1.064 and 12A-1.0641, F.A.C.
(6) Natural gas fuel as defined in Section 206.9951(2), F.S., natural gas, compressed natural gas, and liquefied natural gas are exempt from sales tax when placed into the fuel supply system of a motor vehicle.
Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees; and Rule 12B-5.130, F.A.C.
Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 206.86(4), 212.05, 212.06(3), 212.08(4), (7), (8) FS. History–New 10-7-68, Amended 6-16-72, 7-19-72, 12-11-74, 10-18-78, 7-3-79, 6-3-80, 12-23-80, 8-26-81, 12-31-81, 7-20-82, 10-13-83, Formerly 12A-1.59, Amended 12-13-88, 5-19-93, 9-14-93, 3-20-96, 10-2-01, 4-17-03, 6-12-03, 5-9-13, 1-20-14, 10-26-22.
