The Car and Truck Fleet and Leasing Management Magazine

NAFA Seeks Rule Changes on Gas Tax Refunds for Tax-Exempt Fleets

February 19, 2002

The National Association of Fleet Administrators (NAFA) has submitted written comments to the Internal Revenue Service regarding possible changes to the rules for obtaining refunds of the federal gasoline tax on tax-exempt sales to state and local governments. The IRS is considering issuing a proposed rule to replace the guidance currently provided in IRS Notice 89-29. Under the IRS notice, tax-free sales may be made to a tax-exempt fleet, with the seller responsible for obtaining a refund on the tax from the IRS. In their comments, NAFA members urged the IRS to develop regulations to clarify that the sale charged to an exempt entity, on a credit card that is “accepted by” (rather than “issued by”) an oil company, is not considered a direct sale by the wholesaler to the exempt purchaser. NAFA members said in the comments that the clarification “will permit the use of universal cards, oil company cards, cards issued by third parties, and other credit systems. Doing so will allow exempt fleets to continue to enjoy the significant efficiency and cost benefits that these products provide. If the IRS adopts regulations consistent with the existing tax-exempt credit card programs, it would be beneficial for the thousands of exempt fleets, oil companies, and retail fuel stations.”
Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

Natural gas in liquid form.

Read more

Up Next

More From The World's Largest Fleet Publisher