ISELIN, NJ — The National Association of Fleet Administrators (NAFA), continues to be engaged in discussions to ensure that tax-exempt fleets will continue to be able to use fleet cards to purchase of fuel, net of the federal excise tax, according to the NAFA Fleet Focus e-mail newsletter. Presently, IRS guidance allows tax-exempt fleets to continue use of fleet cards for the purchase of gasoline, but only until March 1. Meetings were held this week with congressional staff and IRS officials to discuss the need for congressional action prior to the March 1 deadline. Although NAFA, the oil companies, and the major fleet card issuers reached an agreement on a solution, members of the American Bankers Association, notably Citibank, continue to be opposed, according to NAFA. Citibank is opposed because as a credit card issuer it does not want to bear the responsibility for determining whether a tax-exempt fleet is in fact tax exempt, said NAFA. If agreement is not reached with Citibank, which itself issues oil company fleet cards, legislative action by the March 1 deadline may be problematic, said NAFA.

Originally posted on Fleet Financials

0 Comments