Exempt From Fuel Tax

Today TaxMama hears from Louise, from the Food Pantries in Albany, NY www.foodpantries.net . Louise tells us. “We are a small 501©(3) organization. I’m desperately trying to find out if we are eligible to claim exemption from federal and state fuel taxes (sales, use and excise). The Food Pantries for the Capital District has two trucks that rescue and deliver food, to food pantries. Gas prices are choking us.”

Hi Louise,

There’s a great need for your services.

Here is a list of the non-taxable uses of fuel in IRS Publication 510:
http://www.irs.gov/publications/p510/ch02.html#d0e3355

I don’t think that your activities are among the uses listed.

What you may want to consider doing is seeing if you can get the fuel donated. Check with one of the major oil companies in your area. See if they will donate fuel in exchange for the publicity. They can easily issue your organization a fuel credit card good at their stations, for the right to put a sticker on your vehicles, showing them as a supporter of your Food Pantries.

It’s a drop in the bucket/barrel for them. But it’s a major boon for you!

And remember, you’ll find answers to lots of questions, about charitable strategies and other tax information, free. Where? At TaxMama.com

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