Was formulated racing gasoline with four grams of lead per gallon subject to Florida motor-fuel tax?

Plain-English summary

The described racing fuel was not subject to Florida motor-fuel tax, but it was subject to sales and use tax. The product was made exclusively for racecars, had an octane number above 75, and contained four grams of lead per gallon.

The Department applied a gasoline definition requiring no more than 0.05 grams of lead per gallon. It concluded that this product was not gasoline, was not blended with gasoline, and could not be placed in the tank of a statutory motor vehicle. Track-only racecars were not motor vehicles under the cited registration provisions.

What this means for you

The fuel's chemical specifications and actual use both drove the result. The ruling did not create a blanket exemption for every product marketed as racing fuel. It also expressly shifted the described product from fuel tax to sales and use tax.

Common questions

Q: Why did Florida find no motor-fuel tax? The product fell outside all three motor-fuel alternatives applied in the ruling: gasoline, a product blended with gasoline, or fuel placed in a gasoline-powered motor vehicle.

Q: Did the octane number alone decide the issue? No. The product exceeded 75 octane, but its four-gram lead content exceeded the 0.05-gram standard the Department used.

Q: Was the sale entirely tax-free? No. The Department said Chapter 212 sales and use tax applied.

Citations and references

• Fla. Stat. §§ 206.01(9), (23) and 206.41(6) — motor fuel and taxable events
• Fla. Stat. §§ 320.01(1) and 320.02 — motor vehicles and registration
• Fla. Stat. ch. 212 — sales and use tax
• Fla. Admin. Code r. 5F-2.001 — Florida gasoline specifications
• C.F.R. § 48-4081-2(i) — gasoline definition cited by the ruling
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 02B5-002

Original ruling text

TAA 02B5002
SUMMARY
QUESTION: Are sales of formulated racing gasoline subject to Florida fuel taxes?
ANSWER - Based on Facts Below: The taxpayer sells racing gasoline. The product is manufactured for the
exclusive use in racing cars, and has a lead content of four (4) grams per gallon. Florida fuel taxes are imposed,
under s. 206.41(1), F.S., on each gallon of motor fuel sold in this state. The term "motor fuel" is defined in s.
206.01(9), F.S., to include all gasoline products or any product blended with gasoline. However, the term "gasoline" is
not defined by the Florida Statutes. It is the position of the Department, based on federal guidelines, that the definition
of gasoline is any mixture used as a fuel in spark-ignition, internal combustion engines, which has an octane number
not less than 75, and a lead content not greater than 0.05 grams per gallon. Under this definition, the racing fuel sold
by the taxpayer is not subject to Florida fuel taxes because the racing fuel is not defined as gasoline, and is not used
in a motor vehicle.

[[July 3, 2002]]

Re:Technical Assistance Advisement 02B5-002
Subject: <>
Statutory References: Chapter 206, Florida Statutes (F.S.)
Rule References: Rule Chapter 12B-5, Florida Administrative Code (F.A.C.)
Taxpayer: XXX
Racing Fuel: XXX, hereinafter referred to as Product
Dear :
This is in response to your letter dated April 3, 2002, requesting a Technical Assistance Advisement regarding the
imposition of fuel tax on the sale of the racing fuel referenced above.
FACTS
A Material Safety Data Sheet (MSDS) was provided for the fuel product referenced above, which reflects that the
product is identified by the chemical name, "XXX" The MSDS lists the hazardous components of the product as
"gasoline (Mixture of Aliphatic & Aromatic Hydrocarbons plus Additives)," with a tetraethyl lead content of four (4)
grams per gallon.
LAW AND DISCUSSION
Section 206.41(6), F.S., provides:
(6) Unless otherwise provided for by this chapter, the taxes specified in subsection (1) are imposed on all of the

following:
(a) The removal of motor fuel in this state from a terminal if the motor fuel is removed at the rack.
(b) The removal of motor fuel in this state from any refinery if either of the following applies:

1. The removal is by bulk transfer and the owner of the motor fuel immediately before the removal is not a licensed
   terminal supplier; or
2. The removal is at the refinery rack.
   (c) The entry of motor fuel into this state for sale, consumption, use, or warehousing if either of the following applies:
3. The entry is by bulk transfer and the enterer is not licensed as a terminal supplier or importer; or
4. The entry is not by bulk transfer.
   (d) The removal of motor fuel in this state to an unregistered person, unless there was a prior taxable removal, entry,
   or sale of the motor fuel.
   (e) The removal or sale of blended motor fuel in this state by the blender thereof. The number of gallons of blended
   motor fuel subject to tax is the difference between the total number of gallons of blended motor fuel removed or sold
   and the number of gallons of previously taxed motor fuel used to produce the blended motor fuel.
   Section 206.01(9), F.S., provides a three-alternative definition to the term motor fuel, including:
   ... [1] all gasoline products or [2] any product blended with gasoline or [3] any fuel placed in the storage supply tank of
   a gasoline-powered motor vehicle. [numerals supplied]
   The conditions specified in subsection (6) of section 206.41, F.S., require the collection of fuel taxes on sales of
   products that are defined as "motor fuel." The product for which the Material Safety Data Sheet was provided meets
   the Florida definition of motor fuel.
   "Gasoline" is not defined in the Florida Statutes. As such, the federal definition found in s. 48-4081-2(i), Code of
   Federal Regulations (C.F.R.), is used for determining the application of the term "racing gasoline" under Florida fuel
   tax law. Section 48-4081-2(i), C.F.R., defines "gasoline" to mean:
   (1) All products (including gasohol (as defined in s. 48.4081-6(b)(2))) that are commonly or commercially known or
   sold as gasoline and are suitable for use as a motor fuel (other than products that have an American Society for
   Testing Materials octane number of less than 75 as determined by the motor method); and....
   Since the Material Safety Data Sheet provided specifically identifies that the racing fuel sold by Taxpayer has an
   octane number greater than 75, and contains four (4) grams of lead per gallon, the American Society for Testing

Materials publication, "Standard Specification for Automotive Spark-Ignition Engine Fuel" for Designation D4814-99
(copy enclosed) is used for further guidance. Table 2, Detailed Requirements for all Volatility Classes, found on page
1059, requires that unleaded gasoline designated by the A.S.T.M. as D4814, Automotive Spark-Ignition Engine Fuel,
may contain lead additives in a volume no greater than 0.05 grams per gallon. Leaded gasoline designated as D4814
may contain lead additives in a volume no greater than 4.2 grams per gallon. Leaded gasoline, however, is not
authorized for on-road use under federal regulations.
With regards to the specifications of gasoline authorized for use specifically in Florida, Rule section 5F-2.001, F.A.C.,
administered by the Department of Agriculture and Consumer Services, Division of Standards, provides additionally:
(1) Gasoline. The following specifications apply to gasoline sold or offered for sale in Florida. Specific variations or
exemptions may be made by the Department of Agriculture and Consumer Services for gasoline designed for special
equipment or service.
(a) Standards. All gasoline shall conform to the chemical and physical standards for gasoline as set forth in the
American Society for Testing and Materials designation D 4814-94a, "Standard Specification for Automotive SparkIgnition Engine Fuel."
(b) Analysis. For purposes of inspection and testing, laboratory analyses shall be conducted using the methods
recognized by the American Society for Testing and Materials designation D 4814-94a, "Standard Specification for
Automotive Spark-Ignition Engine Fuel."
(c) No person shall sell or offer for sale gasoline in this state that does not comply with the following requirements:

1. The total ethanol content of gasoline shall not exceed ten percent (10.0%), by volume;
2. The total methanol and co-solvents content of gasoline shall not exceed ten percent (10.0%), by volume;
3. The total ethanol and methyl tertiary butyl ether (MTBE) content of gasoline shall not exceed twelve percent
   (12.0%), by volume....
   (2) Every retail gasoline dispenser shall have conspicuously and firmly posted the octane rating of the gasoline being
   sold therefrom in a manner conforming with 16 Code of Federal Regulations 306 (1-1-93) hereby adopted by
   reference. Copies of this publication may be obtained from the Superintendent of Documents, U.S. Government
   Printing Office, Washington, D.C. 20402.
   (3) Every retail gasoline dispenser shall have the grade designation of the gasoline being sold therefrom
   conspicuously and firmly attached thereto. The octane rating of gasoline sold using the following grade designations
   must meet the minimum octane rating indicated:
   Grade DesignationMinimum Octane Rating
   Premium, Super, Supreme, High Test91
   Midgrade, Plus89

Regular, Unleaded87
(4) All racing gasoline or gasoline designed for special use that is kept, offered, or exposed for sale, or sold at
retail that does not meet standards established in 5F-2.001(i):
(a) may not be advertised or represented, in writing or orally, to be suitable for use in ordinary motor vehicles
or boat motors;
(b) shall be accompanied by a conspicuous sign on the dispenser stating the product does not meet gasoline
specifications; and
(c) may not be dispensed into vehicles or boats unless the appearance of said vehicles or boats indicates
they are used primarily for racing or special purposes.... [Emphasis supplied]
The term "motor vehicle" is defined in subsection 206.01(23), F.S., and provides:
(23)"Motor vehicle" means any vehicle, machine, or mechanical contrivance which is propelled by any form of engine
or motor which utilizes motor or diesel fuel and is required, or would be required, to be licensed under chapter 320 if
owned by a resident.
Section 320.02, F.S., imposes a registration requirement on those motor vehicles that travel over the roads of this
state during the registration period. Chapter 320, F.S., defines "motor vehicle". Paragraph (a) of subsection
320..01(1), F.S., states:
(1) "Motor vehicle" means:
(a) An automobile, motorcycle, truck, trailer, semitrailer, truck tractor and semitrailer combination, or any other vehicle
operated on the roads of this state, used to transport persons or property, and propelled by power other than muscular
power, but the term does not include traction engines, road rollers, such vehicles as run only upon a track, bicycles, or
mopeds.
(b) Racecars that run only upon a track are not required to be registered pursuant to chapter 320, F.S., and therefore
are not considered motor vehicles as defined in s. 206.01, F.S.
Thus, racing fuel is not fuel placed in the storage supply tank of a gasoline-powered motor vehicle, since the race
vehicle is not a motor vehicle.
CONCLUSION
It is the position of the Department, based on federal guidelines, that the definition of gasoline is any mixture used as
a fuel in spark-ignition, internal combustion engines, which has an octane number not less than 75, and a lead content
not greater than 0.05 grams per gallon. The Product for which a Material Safety Data Sheet was provided with your
request for a Technical Assistance Advisement is not gasoline; is not a product blended with gasoline; and cannot be

placed in the tank of a motor vehicle. The Product is, therefore, not taxable as a motor fuel (See s. 206.01(9), F.S.).
The Product is, however, subject to sales and use tax under the provisions of Chapter 212, F.S.
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 and your request 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. Your name, address, and any other details
which might lead to identification of the taxpayer must be deleted by the Department before disclosure. In an effort to
protect the confidentiality of such information, we request you notify the undersigned in writing within 15 days of any
deletions you wish made to the request or the response. Please note that we already have in file some documents
evincing some desired deletions.
Sincerely,
Lynwood Taylor
Tax Law Specialist
Technical Assistance and Dispute Resolution
LNT/lnt
Control Number: No. 49935