According to a recent article in the Penn State Dairy Digest, any person who uses liquid fuels in agricultural production in Pennsylvania is eligible for a tax refund. Farmers must pay the fuel tax when they purchase gas, diesel fuel, and kerosene. Each year they are permitted to petition the Board of Finance and Revenue for a refund of fuel tax dollars paid on fuel consumed in the production and harvesting of agricultural crops. This year the refund rates are:

  • Gasoline: $0.312 per gallon purchased between July 1, 2008 and June 30, 2009
  • Kerosene and Diesel Fuel: $0.381 per gallon purchased between July 1, 2008 and June 30, 2009

You may claim fuel required for operating regular licensed vehicles used in farm production as long as their use is within a 25-mile radius of the farm. Trucks, pickups, vans, and 4-wheel drive vehicles are all acceptable. Fuel used to operate machinery is also eligible for reimbursement; however, fuel used in cars is not eligible. There is no tax levied on home heating oil so it cannot be included as part of the tax refund claim.

Each claim must include copies of paid receipts or a statement from the fuel dealer that show the number of gallons purchased, purchase dates, and verification that the state taxes (on liquid fuels and fuel use) were paid. Check all statements from fuel dealers to ensure that the tax charged is shown correctly on each statement.

Claim forms are available from:

Board of Finance and Revenue
Motor Fuels Section
1101 S. Front Street, Suite 410
Harrisburg, PA 17104-2540

Completed claim forms mailed to the Board of Finance and Revenue must be postmarked no later than Sept. 30, 2009. The earlier you submit your claim, the sooner the claim can be processed and the reimbursement mailed to you. To request a claim form or to ask any questions, contact the Board at (717) 787-6534 or dlfetters@tre.state.pa.us.

Source: Penn State Dairy Digest