{"id":1095,"date":"2020-07-22T13:13:09","date_gmt":"2020-07-22T18:13:09","guid":{"rendered":"http:\/\/kendrickoil.com\/?p=1095"},"modified":"2021-09-05T12:05:45","modified_gmt":"2021-09-05T12:05:45","slug":"farm-and-food-processing-diesel-tax-exemptions","status":"publish","type":"post","link":"https:\/\/kendrickoil.com\/farm-and-food-processing-diesel-tax-exemptions\/","title":{"rendered":"Farm And Food Processing Diesel Tax Exemptions"},"content":{"rendered":"
Most diesel fuel sales are taxable, but there are some exemptions, including those in certain parts of the farm and food production industries. Partial tax exemptions can be given to both sellers and buyers. In order to qualify, the diesel must be of a specific type and only used for certain purposes.<\/p>\n
For these specific tax exemptions, only a few types of diesel apply. These meet American Society for Testing and Materials (ASTM) standards and are known as:<\/p>\n
Fuel retailers need to make sure that they have accurate records of these types of fuels and related transactions.<\/p>\n
The second part of qualifying for the partial fuel tax exemptions is related to the use of the fuel. These uses are food processing, farming, and contract hauling related to these two industries. Here is some information that can help you know if you could qualify for the partial exemption.<\/p>\n
There are further restrictions within the farming qualification. The following people may qualify for the exemption: Ranchers or farmers conducting farming business and those who conduct farming business on contract for those ranchers or farmers. There are many activities that require diesel fuel within the farming industry.<\/p>\n
<\/p>\n
As you can see, there are a lot of restrictions that go into qualifying for the partial diesel tax exemption. It can be helpful to look at activities that don\u2019t qualify as well as activities that require that fuel.<\/p>\n
Only certain types of businesses can get the partial diesel fuel exemption in the food processing industry. These must all fall into specific SIC Groups or Codes. They include 203 Frozen and Preserved Fruits, Vegetables, and Food Specialties; 207 Fats and Oils; 201 Meat Products; 202 Dairy Products; and more.<\/p>\n
Selling diesel fuel to a qualified food processor can also allow for partial tax exemptions in the following circumstances.<\/p>\n
The diesel fuel partial tax exemption can also apply to certain contract workers that haul agricultural products for farmers, ranchers, and food processors. The contract workers must be transporting the products to buyers or to midway points for handling-agricultural products (owned by the farmers, ranchers, or processors). The other option is that they must be transporting supplies, materials, or raw products to a processing plant.<\/p>\n
Understanding the diesel fuel tax exemption for these industries can be difficult. Getting bulk diesel fuel shouldn\u2019t be. We aren\u2019t tax professionals, but if you need wholesale diesel delivered to your farm, ranch, or plant, Kendrick Oil Company can help. We provide a variety of fuel Products and Services<\/a>. You can reach us at (800)299-3991<\/a> or speak with our Staff <\/a>for more information.<\/p>\n","protected":false},"excerpt":{"rendered":" Most diesel fuel sales are taxable, but there are some exemptions, including those in certain parts of the farm and food production industries. Partial tax exemptions can be given to…<\/p>\n","protected":false},"author":1,"featured_media":1351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11,52,5,80,7],"tags":[],"_links":{"self":[{"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/posts\/1095"}],"collection":[{"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/comments?post=1095"}],"version-history":[{"count":0,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/posts\/1095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/media\/1351"}],"wp:attachment":[{"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/media?parent=1095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/categories?post=1095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kendrickoil.com\/wp-json\/wp\/v2\/tags?post=1095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}