Vermont Taxes and Fees on Heating 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 the sale of propane, heating oil, kerosene, and dyed diesel fuel delivered in bulk to a residence or business. Sales to the federal or state goverment— or local municipality or school district— are exempt from the 2-cent per gallon Fuel Tax. Sales from a pump and sales for re-sale are also exempt. Revenue from the Fuel Tax funds the Vermont Low Income Weatherization Program.
The Vermont Sales Tax is applied to commercial sales of heating fuel. The tax also applies to sales of dyed diesel sold in bulk, if the fuel is for non-propulsion use. There are exemptions from the Sales Tax for dyed diesel used for manufacturing and agricultural purposes.
Vermont law allows fuels sellers to itemize the Fuel Tax, PDLF and Sales Tax where applicable.