Did a mobile-fueling wholesaler's gasoline and diesel deliveries to a federal agency meet Florida's 500-gallon fuel-tax exemption threshold?

Plain-English summary

The wholesaler's documented gasoline and diesel sales to the federal agency qualified for Florida's fuel-tax exemption. Section 206.62 required the fuel to be sold and delivered to the United States or its agency in bulk lots of at least 500 gallons per delivery and for exclusive federal use.

The company's mobile units fueled agency vehicles at multiple Florida sites, and the submitted invoices showed more than 500 gallons billed for each delivery. That per-delivery documentation—not merely the weekly or annual contract volume—satisfied the threshold.

What this means for you

A large overall federal contract does not by itself prove the exemption. The invoices must show that each qualifying delivery met the statutory gallon minimum and was sold for exclusive federal use.

Common questions

Q: Did the wholesaler qualify for the exemption? Yes.

Q: Was the threshold measured weekly? No. The ruling applied the 500-gallon minimum to each delivery.

Q: Did delivering fuel directly into multiple agency vehicles prevent exemption? No, on the submitted facts and invoices.

Citations and references

• Fla. Stat. § 206.62 — fuel sold to the United States in bulk deliveries
• Fla. Stat. ch. 206 — motor and other fuel taxes
• Fla. Admin. Code r. 12B-5.060 — federal-government fuel sales
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 02B5-001

Original ruling text

TAA 02B5001
SUMMARY
QUESTION: Does this taxpayer meet the 500-gallon threshold for an exemption from fuel taxes on gasoline and
diesel fuel delivered to a federal governmental agency?
ANSWER - Based on Facts Below: Agencies of the federal government are exempt from fuel taxes when gasoline,
diesel and aviation fuel is purchased by the agencies in quantities of not less than 500 gallons per delivery. Invoices
provided by the taxpayer reflects that not less than 1500 gallons of gasoline and diesel fuel to were delivered to a
federal agency on each delivery.

[[March 12, 2002]]

Re:Technical Assistance Advisement 02B5-001
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Chapter 206, Florida Statutes
Rule Section 12B-5.060, Florida Administrative Code
XXX hereinafter referred to as Taxpayer
XXX hereinafter referred to as Customer
Contract Number XX, hereinafter referred to as Contract
Dear :
This is in response to your facsimile received January 23, 2002, in which you request a Technical Assistance
Advisement regarding the Taxpayer's responsibility for collecting Florida fuel taxes on sales of gasoline to a
Customer.
ISSUE
The issue is whether the Taxpayer meet requirements set forth in s. 206.62, Florida Statutes (F.S.), regarding fuel
sold to the Federal Government.
FACTS AS PRESENTED
A copy of a Contract between the Taxpayer and Customer was provided. The contract requires the Taxpayer to
deliver and dispense regular unleaded equivalent gasoline (minimum 87 octane), or Number 2 low sulfur diesel, into
individual motor vehicles at designated sites for an initial period of two (2) years. Attachment A of the Contract
estimates that 900,000 gallons of gasoline will be delivered to Customer during the initial two-year period.
On January 23, 2002, the Taxpayer provided, by facsimile, a copy of a letter received from Customer, dated the same

day. The letter reflects that under the Contract between Taxpayer and Customer, the Taxpayer is required to deliver,
and fuel Customer's vehicles, with approximately 450,000 gallons of fuel per year. The letter reflects further that the
Customer is billed weekly by the Taxpayer.
On February 15, 2002, the Taxpayer provided, by facsimile, five (5) copies of invoices for the month of August 2001,
which reflect the deliveries of gasoline and diesel fuel to Customer on August 2, 3, 6, 7, 9, and 10, 2001. Each invoice
reflects a delivery of over 2,000 gallons of fuel to the Customer on each of the days specified.
The Taxpayer provided, further, a schedule indicating total deliveries of fuel to Customer for the entire month of
August 2001. The schedule reflects that the Taxpayer delivered more than 2,000 gallons of fuel to Customer on each
delivery date during the month of August 2001. The Taxpayer is a licensed wholesaler of motor fuel.
LAW AND DISCUSSION
Section 206.62, Florida Statutes (F.S.), provides in pertinent part:
(1) Every terminal supplier or importer of motor fuels shall be exempt from the payment of all excise taxes upon motor
fuels sold by such person in the state to the United States or its departments or agencies when the motor fuel is sold
and delivered by the terminal supplier or importer in bulk lots of not less than 500 gallons in each delivery to and for
the exclusive use by the United States or its departments or agencies.
Every wholesaler of motor fuels who has purchased such fuel tax exempt from a terminal supplier or importer shall be
exempt from the payment of all excise taxes upon motor fuels sold by such licensee in the state to the United States
or its departments or agencies when the motor fuel is sold and delivered by such licensee in bulk lots of not less than
500 gallons in each delivery to and for the exclusive use by the United States or its departments or agencies.
Every wholesaler of motor fuels who has purchased such fuel tax paid shall be entitled to a monthly refund of all
excise taxes paid upon motor fuels in the state to the United States or its departments or agencies when the motor
fuel is sold and delivered by such licensee in bulk lots of not less than 500 gallons in each delivery to and for the
exclusive use by the United States or its departments or agencies.
The provisions of statute cited above are interpreted to provide terminal suppliers, importers and wholesalers the
authority to exempt the payment of motor fuel taxes to this state on each delivery of motor fuel in bulk lots of not less
than 500 gallons to agencies of the United States Government. The Taxpayer was licensed as a wholesaler in this
state on July 6, 2001.
The request for a Technical Assistance Advisement, dated January 23, 2002, provides:
ON-SITE FUEL SERVICE, INC.[,] WOULD LIKE TO REQUEST A TECHNICAL ASSISTANCE ADVISEMENT TO
EXEMPT OUR FUELING SERVICES TO THE [CUSTOMER] IN THE STATE OF FLORIDA UNDER [CONTRACT].
UNDER THIS CONTRACT WE PERFORM ON-SITE MOBILE FUELING SERVICES TO VARIOUS [CUSTOMER]
LOCATIONS IN THE STATE OF FLORIDA. [CUSTOMER] IS BILLED WEEKLY FOR OUR SERVICES AND THE

TOTAL GALLONS DELIVERED WEEKLY EXCEED 500 GALLONS.
The copy of the letter provided by Customer, dated January 23, 2002, specifies that the Contract between the
Taxpayer and Customer requires the Taxpayer to fuel Customer's vehicles. Customer estimates that approximately
450,000 gallons of fuel will be needed each year during the first two years for the Taxpayer to satisfy the conditions of
the Contract. The letter further reflects that the Taxpayer bills the Customer weekly.
THE SITUATION BASED DOCUMENTATION SUBMITTED
Information received from the Taxpayer by facsimile on February 13, 2002 reflects that the Taxpayer operates two
mobile-fueling vehicles that are physically located in this state. One vehicle (Unit #42) is located (based) in
Tallahassee, and the other vehicle (Unit #50) is based in Fort Myers. Each mobile-fueling vehicle has the capacity to
haul 4,500 gallons of fuel. Unit #42 delivers approximately 2,300 gallons of fuel per week (two or three-day delivery
week) to vehicles operated by the Customer in the Tallahassee area, and approximately 12,000 gallons of fuel per
week to vehicles operated by one other customer located in Leon County. Unit #50 delivers fuel exclusively to
vehicles operated by the Customer in the Fort Myers area.
By Contract, the Taxpayer is obligated to deliver 900,000 gallons of either regular unleaded gasoline or Number 2 lowsulfur diesel fuel between August 1, 2001 and July 31, 2003, and to place such fuel in multiple vehicles owned or
operated by Customer. The fuel is delivered by the Taxpayer between the hours of 6:00 P.M and 7:00 A.M.
Attachment A of the Contract limits service fees charged by the Taxpayer to a three-day delivery schedule.
Attachment A is then interpreted to indicate that the Taxpayer delivers fuel to Customer no more than three times a
week. Invoices supplied by the Taxpayer reflect that 6,613 gallons of gasoline were delivered into Customer's
vehicles on January 26, 2002, at nineteen (19) Florida locations.
CONCLUSION
The provisions of s. 206.62, F.S., require that a sale of fuel to Customer must be in bulk lots of no less than 500
gallons per delivery to qualify as an exempt sale. Under the situation depicted above, it is determined that, for the
Taxpayer to qualify for the exemption, the invoices issued by the Taxpayer to the Customer must reflect that the
Customer is billed for no less than 500 gallons of fuel per delivery. The invoices provided by the Taxpayer reflect that
the Taxpayer qualifies for the exemption.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is binding on the
Department only under the facts and circumstances described in the request for this advice as specified in s. 213.22,
F.S. Our response is based on those facts and the specific situation summarized above. You are advised that
subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this
advice is based may subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public records under
Chapter 119, F.S., which are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential
information must be deleted before public disclosure.

In an effort to protect confidentiality, we request you provide the undersigned with an edited copy of your request for
Technical Assistance Advisement, the backup material and this response, deleting names, addresses and any other
details which might lead to identification of the taxpayer.
Your response should be received by the Department within 15 days of the date of this letter.
Sincerely,
Lynwood Taylor, Tax Law Specialist
Technical Assistance
and Dispute Resolution
(850) 922-4725
LNT/lt
Con. #: 48606