Fuel Tax Exemption Permit holders (i.e. farmers, commercial fishers, trappers and loggers) may purchase 80% of their gasoline tax exempt from registered bulk fuel dealers, cardlock or keylock operations for use in their farming, commercial fishing, trapping or logging activities. For administrative simplification, fuel dealers may apply a tax rate of 3¢ per litre on all gasoline sold (i.e. 20% of 15¢ per litre tax rate) for use in a farming or primary producing activity.

Fuel Tax Exemption Permit holders may also purchase marked diesel fuel and propane exempt of tax for use in their eligible farm and primary producing activities.

Clear diesel fuel or fuel purchased from a retail service station or gas bar is not eligible for a fuel tax refund.

Registered bulk fuel dealers, cardlock and keylock operators will receive a 12¢ per litre refund or tax credit representing the 80% exemption for eligible farm gasoline sales reported through Saskatchewan Finance's automated up-front exemption system (AUFES).

Farmers and commercial fishers, trappers and loggers must complete a Farm Fuel Program Permit Renewal each year to:

• Renew their Fuel Tax Exemption Permit; and
• Calculate and pay the fuel tax on gasoline and propane purchased with an exemption permit in the previous year and used for personal or non-farm business purposes.

Under the Farm Fuel Program, an eligible farmer is a person who owns or rents land, controls and is responsible for the operation of a farm and meets at least one of the following criteria:

• The person must own or rent at least 75 acres (30 hectares) of cultivated land in Saskatchewan, that is used for the growing of cereal crops; or
• The person received gross annual revenue of at least $10,000 from the sale of primary farm products that he or she produced in Saskatchewan.

A person may also qualify as a farmer if he or she is a member or shareholder in a farm organization, such as an agricultural corporation, farm partnership, a farm co-operative, or a farm colony, and contributed substantially to the agricultural production of that farm organization.