News and Insights

Ontario Fuel Tax Refunds: Water Trucks Added to List of Eligible PTO Equipment

Tax Development Sep 15, 2020

Ontario fuel tax refunds are available for power take off (PTO) operations involving auxiliary equipment which uses the same fuel tank as that used to operate a vehicle. As of July 1, 2017, the Ministry has allowed taxpayers to compute fuel tax refunds for PTO equipment based on pre-determined percentages according to the type of truck or operation using the fuel. For example, a vacuum or hydro vac truck that operates at over 600 horsepower is entitled to a refund for 40% of the fuel disbursed.  The pre-determined rates decline in 5% increments by category, with the lowest allowance for eligible equipment being 5%. 

Water trucks have now been added to the 5% allowance category.

Additional information on Ontario fuel tax refunds related to PTO equipment can be found at:  https://www.fin.gov.on.ca/en/refund/pto/index.html