For sales tax purposes, fuel vendors are required to obtain valid exemption certificates for all exempt nonresidential sales of fuels that are not subject to fuel taxes. Although the residential use of fuel is not subject to sales and use tax, the Department has issued an Information Notice advising vendors that exemption certificates (stating that the fuel is being purchased solely for the purchaser’s own residential use) should also be obtained to support exempt residential sales of such fuel, except for the following types of sales: (1) the product is delivered to a single residence and is billed to an individual at that residential location’s mailing address, (2) the sale of less than 11 gallons of kerosene, unless purchased through a commercial account or the vendor has reason to believe the purchase is not for residential use, and (3) the sale of propane gas in 20 pound tanks, unless purchased through a commercial account or the vendor has reason to believe the purchase is not for residential use. Sales and Use Tax Information Notice 2014-01 (January 24, 2014).
