Vermont Taxes and Fees on Fuel
The 1-cent per gallon Petroleum Distributors Licensing Fee (PDLF) is paid on all gallons of heating oil, kerosene, and dyed diesel delivered in bulk. There are no municipal, agricultural, or manufacturing exemptions from the PDLF. The only exempt sales are those from a stationary pump and sales for re-sale. The PDLF is NOT assessed on sales of propane. Revenue from the PDLF goes to the Petroleum Cleanup Fund (PCF), which helps pay for pollution remediation and pro-active measures to reduce the occurrence of fuel spills.
The 2-cent per gallon Vermont Fuel Tax is assessed on all delivered gallons of propane, heating oil, kerosene, and dyed diesel fuel. Sales from a stationary pump and sales for re-sale are exempt. Revenue from the Fuel Tax funds the Vermont Low Income Weatherization Program. The citation in Vermont law is 33 V.S.A. § 2503. FUEL TAX
The Vermont Sales Tax is applied to commercial sales of heating oil, propane and kerosene. The tax also applies to sales of dyed diesel sold in bulk, if the fuel is used in a stationary engine. There are exemptions from the Sales Tax if the fuel is used for manufacturing, forestry, or agricultural purposes.
Vermont law allows fuels sellers to itemize the Fuel Tax, PDLF and Sales Tax where applicable.
VFDA Members: Click here to access our Keys to Compliance Bulletin with instructions on how to itemize taxes and fees on heating fuel. Contact VFDA if you need a password.
Information on taxes and fees on motor fuels sold in Vermont can be found here.
VFDA's Fuel Tax Chart can be found here.