The province of Prince Edward Island has issued this notice to clarify the tax treatment under the International Fuel Tax Agreement (“IFTA”) for fuel purchased in Washington and New York. The state of Washington has recently entered into fuel tax agreements with several Washington Tribes regarding the taxation of motor vehicle fuel and special fuel sold at fuel stations located on reservations or trust lands within the state. For fuel purchased in New York State, if the total gallons of B20 fuel exceed the taxable gallons of diesel used in New York, an adjustment will be required on the IFTA return.
PEI GTN 197
“International Fuel Tax Agreement Tax Reporting Information”