Power Takeoff (PTO) equipment refers to auxiliary equipment of a licensed motor vehicle that uses fuel (clear diesel fuel, gasoline and propane) from the vehicle’s fuel tank(s). Examples of PTO equipment include:
- cement mixers
- aerial buckets, lifts and cranes
- refrigeration units
- power vacuums, pumps and blowers
If you paid tax on fuel used in Ontario to operate PTO equipment, you may qualify for a refund.
Do I qualify for a Power Takeoff tax refund?
To qualify for a PTO tax refund, you have to meet all these conditions:
- you use the PTO equipment in Ontario;
- the PTO equipment uses fuel from the licensed vehicle’s operating fuel tank
- the power from the PTO equipment does not propel the motor vehicle
- you do not use the motor vehicle in any way to transport passengers
- you do not use the PTO equipment for personal use, pleasure or recreation
- you paid fuel tax to Ontario
You must apply for a refund within 4 years of paying the fuel tax.
Can I claim a refund if I am licensed under the International Fuel Tax Agreement?
Yes, if you meet all the conditions listed above. However, the amount of your refund will be based on the ratio of your Ontario travel to the total distance travelled. Please refer to Tax Bulletin FT/GT 4-2000 Power Takeoff Tax Refunds for Interjurisdictional Carriers Licenced under the International Fuel Tax Agreement for details.
How do I determine the PTO fuel consumption?
You may determine the fuel used to operate your PTO equipment using either:
- readings from separate fuel metering devices that measure the fuel supplied to the PTO equipment, or
- set allowances approved by the ministry for different kinds of PTO equipment, based on information from equipment manufacturers.
Please contact the ministry to confirm if there is a ministry-approved allowance for your equipment.
How to apply?
Contact the ministry for an application package.
For refunds over $500: Complete and send us your application. Make sure you send the required supporting documents. You must keep all records for 7 years for audit purposes.
For refunds under $500: Complete and send your application. No supporting documents are required, but you must keep them for audit purposes.
