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. Learn more here.
The 2-cent per gallon Vermont Fuel Tax is assessed on the retail sale of propane, heating oil, kerosene, and dyed diesel fuel delivered to a residence or business. Sales to a state or local municipality are exempt from the 2-cent per gallon Fuel Tax. Sales from a pump and sales for re-sale are also exempt. There are no exemptions in the law for sales to non-profits. Revenue from the Fuel Tax funds the Vermont Low Income Weatherization Program. Click here to learn more about Vermont's 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.
Fuels sellers are permitted by Vermont law to itemize the Fuel Tax, PDLF and Sales Tax where applicable.