Key Fuel Programs – Farm Truck

All farms are now authorized to use coloured fuel in farm vehicles that have a farm licence plate (also known as an A plate) while operating on a highway for a farm purpose. A family farm truck emblem is no longer required.

If you do not have an A plate, you need to licence your farm vehicle under the Commercial Transport Act and have a farm truck licence plate issued by the Insurance Corporation of British Columbia (ICBC). Please contact your local ICBC agent for more information.

This change provides the same benefits to all farmers, regardless of the farm’s business structure. As family farm emblems are no longer required, the program has been discontinued.

A farm means:

land classified as farmland by BC Assessment

Although propane is not a coloured fuel, farmers are eligible for the following tax exemptions for propane:

	Effective February 21, 2007, farmers may purchase propane for use in farm machinery, equipment and vehicles exempt of tax. To qualify, the machinery, equipment and vehicles must be operated on farm land and for farm purposes.
	Farmers may also purchase propane exempt from tax for use in farm tractors and farm trucks when operated on-highway for farm purposes. To use exempt propane for a farm truck, the truck must be licensed as a farm vehicle. . Please also see Bulletin SST 111, Propane.

Bona fide farmers are eligible to purchase coloured fuel or propane exempt of tax if the fuel is:

	delivered by the seller to a storage receptacle located on the farmer's land and the land is classified as farm land, or
	purchased on the farmer's account (i.e. not a cash, credit card, or debit card sale) from a bulk agent or key/card lock facility

To receive the point-of-sale exemption, a bona fide farmer must have:

	a completed and signed certificate of Exemption as a Farmer form (FIN 465), or
	a British Columbia Agricultural Council Farmer Identity Card

When bona fide farmers make cash purchases of coloured fuel or propane at a bulk agent, key/card lock facility, or retail station, they are required to pay fuel taxes at the time of purchase and apply for a refund.

Bona fide farmers may also apply for a refund for the difference between the clear and coloured fuel tax rates if clear fuel is used in a farm truck while operated internationally for a farm purpose. This allows farmers to continue to receive the benefit of the lower coloured-fuel tax rate for fuel used to transport their farm produce to the United States, where the use of coloured fuel in vehicles operated on highways is prohibited.

Please see our Refunds page for more information on applying for refunds in these situations, or for other overpayments of tax.