Were forty racing-fuel blends sold for exclusive use in racing cars subject to Florida motor-fuel tax?

Plain-English summary

Florida concluded that the seller's forty racing-fuel blends were not subject to state motor-fuel tax because they were not “gasoline” and therefore did not meet the statutory definition of “motor fuel.” The ruling separately said their sales remained subject to Florida sales and use tax under Chapter 212.

The seller submitted a generic material safety data sheet and a separate specification sheet for each blend. The products were made for racing use, had motor octane numbers of at least 75, and were described as leaded racing fuels intended for motor-fuel use.

Why the Department excluded the products from motor-fuel tax

Section 206.41 imposed fuel tax on specified removals, entries, and sales of motor fuel. Section 206.01(9) defined motor fuel to include gasoline products, products blended with gasoline, and fuel placed in a gasoline-powered motor vehicle's supply tank.

Florida law did not define “gasoline” in the provisions discussed, so the Department looked to federal finished-gasoline and lead-content standards and Florida product standards. It stated that gasoline, for this analysis, was a spark-ignition-engine fuel with an octane number of at least 75 and no more than 0.05 gram of lead per gallon.

The conclusion declared that none of the forty products complied with that definition, that the products were prohibited for use in motor vehicles, and that they therefore were not taxable motor fuel. Rule 5F-2.003 separately addressed racing or special-use gasoline that did not meet ordinary gasoline standards and required restrictions and dispenser warnings.

The advisement contains an important internal inconsistency

The ruling's summary says each blend contained between 1.2 and 6 grams of lead per gallon. In the detailed discussion, however, it says thirty-nine blends were in that range and Fuel #5 contained only 0.001 gram per gallon. That figure is below the ruling's stated maximum of 0.05 gram, yet the conclusion still says none of the forty products met the definition.

The page therefore reports the Department's actual holding but does not treat the ruling as a clean formula for classifying another fuel. A seller with a different blend—or even a similar low-lead blend—would need current, product-specific analysis.

What this means for you

Racing-fuel sellers and distributors

The ruling distinguished Florida motor-fuel tax from ordinary sales tax. Avoiding Chapter 206 fuel tax did not make the sale tax-free; the Department expressly applied Chapter 212 sales and use tax.

Motorsports businesses and race teams

Product specifications mattered. The Department examined octane, lead content, intended use, and restrictions on use in ordinary motor vehicles for forty specifically identified blends.

Accountants and tax professionals

Do not rely on the stated lead threshold alone. The advisement's own Fuel #5 data does not align neatly with its all-products conclusion, and the ruling warns that later statutes, rules, or judicial interpretations may change the treatment.

Common questions

Q: Did Florida motor-fuel tax apply to the forty racing-fuel blends?
A: No. The Department concluded that none was gasoline or motor fuel under the provisions it applied.

Q: Were the sales entirely tax-exempt?
A: No. The ruling expressly says sales and use tax under Chapter 212 still applied.

Q: What characteristics did the Department review?
A: Each product's intended racing use, motor octane number, lead content, and compliance with the cited federal and Florida gasoline standards.

Q: Can another seller use a 0.05-gram lead cutoff by itself?
A: This advisement is not a reliable basis for doing so. Its detailed facts list one blend below that threshold even though its conclusion excludes all forty products from the gasoline definition.

Q: Did the ruling cover diesel racing fuel or every special-use fuel?
A: No. It addressed the forty identified racing-fuel blends and specification sheets submitted by this seller.

Citations and references

• Fla. Stat. § 206.01(9) — definition of motor fuel
• Fla. Stat. § 206.41(1), (6) — motor-fuel taxes and taxable events
• C.F.R. § 48.4081-(b)(2)(iii) — finished gasoline provision as cited in the advisement
• 40 C.F.R. §§ 80.1(g), 80.22(b) — federal lead-content provisions cited in the advisement
• Fla. Admin. Code rr. 5F-2.001, 5F-2.003 — gasoline standards and racing or special-use gasoline
• Fla. Stat. ch. 212 — sales and use tax
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04B5-001

Original ruling text

TAA 04B5001
SUMMARY
QUESTION: Are sales of racing gasoline subject to Florida fuel taxes?
ANSWER - Based on Facts Below: The taxpayer sells forty (40) different blends of racing gasoline. Each blend is
manufactured for the exclusive use in racing cars, and each has a lead content of between 1.2 and 6 grams per
gallon. Florida fuel taxes are imposed, under s. 206.41(1), F.S., on each gallon of motor fuel sold in this state. The
term "motor fuel" is defined in s. 206.01(9), F.S., to include all gasoline products or any product blended with gasoline.
However, the term "gasoline" is not defined by the Florida Statutes. It is determined, based on federal guidelines,
that the definition of gasoline is any mixture used as a fuel in spark-ignition, internal combustion engines, which has
an octane number not less than 75, and a lead content not greater than 0.05 grams per gallon. Under this definition,
the forty racing fuels sold by the taxpayer are not subject to Florida fuel taxes because the racing fuels are not defined
as gasoline.

[[May 6, 2004]]

Re:Technical Assistance Advisement 04B5-001
Taxpayer: XXX (hereinafter referred to as Taxpayer)
Subject: <>
Statutory References: Chapter 206, Florida Statutes (F.S.)
Rule References: Rule Chapter 12B-5, Florida Administrative Code (F.A.C.)
Dear :
This is in response to your letter dated April 2, 2004, in which you request advice on whether forty (40) products sold
by your company as racing fuel are subject to Florida fuel taxes. You have submitted, with your letter, forty (40)
specification sheets. Each specification sheet lists the specific gravity, lead content, color, motor octane, oxidation
stability, and distillation specification of each product. The racing fuels sold by your company for which a separate
specification sheet has been submitted are:
VP 2-BBL (hereinafter referenced as Fuel #1)
VP 110 (hereinafter referenced as Fuel #2)
VP 921 (hereinafter referenced as Fuel #3)
VP 921 RT (hereinafter referenced as Fuel #4)
VP A5 (hereinafter referenced as Fuel #5)
VP Air Race (hereinafter referenced as Fuel #6)
VP C-11 (hereinafter referenced as Fuel #7)
VP C-12 (hereinafter referenced as Fuel #8)

VP C-14 (hereinafter referenced as Fuel #9)
VP C-14+ (hereinafter referenced as Fuel #10)
VP C-15 (hereinafter referenced as Fuel #11)
VP C-16 (hereinafter referenced as Fuel #12)
VP C-18 (hereinafter referenced as Fuel #13)
VP C-19 (hereinafter referenced as Fuel #14)
VP C-21 (hereinafter referenced as Fuel #15)
VP C-23 (hereinafter referenced as Fuel #16)
VP C-25 (hereinafter referenced as Fuel #17)
VP C-44 (hereinafter referenced as Fuel #18)
VP C-46 (hereinafter referenced as Fuel #19)
VP CMP (hereinafter referenced as Fuel #20)
VP DRT (hereinafter referenced as Fuel #21)
VP Import (hereinafter referenced as Fuel #22)
VP Late Model (hereinafter referenced as Fuel #23)
VP Late Model + (hereinafter referenced as Fuel #24)
VP Marine (hereinafter referenced as Fuel #25)
VP MR-1 (hereinafter referenced as Fuel #26)
VP MR2 (hereinafter referenced as Fuel #27)
VP MR3 (hereinafter referenced as Fuel #28)
VP MR4 (hereinafter referenced as Fuel #29)
VP MR6 (hereinafter referenced as Fuel #30
VP MR8 (hereinafter referenced as Fuel #31)
VP MR9 (hereinafter referenced as Fuel #32)
MRX01 (hereinafter referenced as Fuel #33)
MS 98 (hereinafter referenced as Fuel # 34)
VP NOS (hereinafter referenced as Fuel #35)
VP Red (hereinafter referenced as Fuel #36)
VP Performance Leaded (hereinafter referenced as Fuel #37)
VP Ultimate 4 (hereinafter referenced as Fuel # 38)
VP Stock/Super Stock (hereinafter referenced as Fuel # 39)
VP Ultimate 2 (hereinafter referenced as Fuel # 40)
FACTS AS PRESENTED
A generic Material Safety Data Sheet (MSDS), representing the hazardous qualities of all racing fuels sold by the
Taxpayer, was submitted with a letter from the Taxpayer, dated February 19, 2004. In this letter, the taxpayer
requested advice on whether all leaded racing fuels sold by the Taxpayer are exempt from Florida fuel taxes. An
informal letter was mailed to the Taxpayer on March 24, 2004, advising the Taxpayer that a valid response could not
be given based solely on the information reflected on the MSDS. Recommendation was made during a telephone
conversation occurring after the Taxpayer received the informal letter that the Taxpayer submit, to the Department, a
specification sheet for each racing fuel product, and that each specification sheet identify both the motor octane

number for each fuel and the lead content of each product in grams per gallon. On April 2, 2004, the Taxpayer
submitted the specification sheets for forty (40) different grades of racing fuel. Collectively, the generic MSDS, and
each specification sheet shall be reviewed to determine whether each racing fuel sold by the Taxpayer is either
subject to or exempt from Florida fuel taxes.
The generic MSDS reflects that the racing fuels are all classified as leaded racing fuel, and that all leaded racing fuels
sold by the Taxpayer are mixtures of petroleum hydrocarbons intended for use as motor fuels. Each product bears
the chemical name "petroleum distillates" containing ten percent (10%) lead. Each specification sheet further reflects
that all racing fuels sold by the Taxpayer have a motor octane number of at least 75, and lead contents of at least 0.05
grams per gallon.
LAW AND DISCUSSION
Section 206.41(6), F.S., provides:
(6) Unless otherwise provided for by this chapter, the taxes specified in subsection (1) are imposed on all of the
following:
(a) The removal of motor fuel in this state from a terminal if the motor fuel is removed at the rack.
(b) The removal of motor fuel in this state from any refinery if either of the following applies:

1. The removal is by bulk transfer and the owner of the motor fuel immediately before the removal is not a licensed
   terminal supplier; or
2. The removal is at the refinery rack.
   (c) The entry of motor fuel into this state for sale, consumption, use, or warehousing if either of the following applies:
3. The entry is by bulk transfer and the enterer is not licensed as a terminal supplier or importer; or
4. The entry is not by bulk transfer.
   (d) The removal of motor fuel in this state to an unregistered person, unless there was a prior taxable removal, entry,
   or sale of the motor fuel.
   (e) The removal or sale of blended motor fuel in this state by the blender thereof. The number of gallons of blended
   motor fuel subject to tax is the difference between the total number of gallons of blended motor fuel removed or sold
   and the number of gallons of previously taxed motor fuel used to produce the blended motor fuel.
   Section 206.01(9), F.S., assigns a three-pronged definition to the term motor fuel to mean:
   ... [1] all gasoline products or [2] any product blended with gasoline or [3] any fuel placed in the storage supply tank of

a gasoline-powered motor vehicle. [numerals supplied]
The sections of Chapter 206, F.S., cited are interpreted as imposing fuel taxes on the removal of motor fuel (gasoline
products or products blended with gasoline) at the loading rack of terminals, and on the entry of motor fuel into this
state for sale, consumption, use, or warehousing.
The Taxpayer sells forty (40) products that are each identified by the MSDS as leaded racing fuel, and each product is
manufactured for use as a "motor fuel." The conditions specified in subsection (6) of section 206.41, F.S., require the
collection of fuel taxes on sales of products that are defined as "motor fuel." However, it is not clear whether the
definition of "motor fuel," for purposes of the MSDS, is the same as the definition of "motor fuel" for purposes of
Florida taxation of "motor fuel."
Since "gasoline," is not defined in the Florida Statutes, we shall look to the federal definition of the term "finished
gasoline" found in s. 48.4081-(b)(2)(iii), Code of Federal Regulations (C.F.R.), for guidance for determining whether
racing fuel is subject to taxation under Florida law. Section 48-4081-(b)(2)(iii), C.F.R., defines "finished gasoline" to
mean:
(1)All products (including gasohol (as defined in § 48.4081-6(b)(2))) that are commonly or commercially known or sold
as gasoline and are suitable for use as a motor fuel (other than products that have an American Society for Testing
Materials octane number of less than 75 as determined by the motor method); and....
The specification sheets submitted by the Taxpayer reflect that each racing fuel has a motor octane number greater
than 75. Thirty-nine (39) of the fuels contain between 1.2 and 6.0 grams of lead per gallon, and one racing fuel (Fuel

5) has a lead content of 0.001 grams per gallon.

The Environmental Protection Agency's (EPA) regulation, Title 40, Part 80, Section 22, Code of Federal Regulations
(CFR), provides guidance regarding the acceptable level of lead, allowed by the EPA in unleaded gasoline which is
authorized for use in motor vehicles. Unleaded gasoline is defined in 40 CFR 80.1(g), to mean:
(g) ... gasoline which is produced without the use of any lead additive and which contains not more than 0.05 gram of
lead per gallon and not more than 0.005 gram of phosphorus per gallon.
Section 80.22(b), CFR, provides additionally:
(b) After December 31, 1995, no person shall sell, offer for sale, supply, offer for supply, dispense, transport, or
introduce into commerce for use as fuel in any motor vehicle (as defined in Section 216(2) of the Clean Air Act, 42
U.S.C. 7550(2)), any gasoline which is produced with the use of lead additives or which contains more than 0.05 gram
of lead per gallon.
With regards to the specifications of gasoline authorized for use specifically in Florida, Rule section 5F-2.001, F.A.C.,
administered by the Department of Agriculture and Consumer Services, Division of Standards, provides additionally:
(1)Gasoline. The following specifications apply to gasoline sold or offered for sale in Florida. Specific variations or

exemptions may be made by the Department of Agriculture and Consumer Services for gasoline designed for special
equipment or service.
(a)Standards. All gasoline shall conform to the chemical and physical standards for gasoline as set forth in the
American Society for Testing and Materials designation D 4814-02, "Standard Specification for Automotive SparkIgnition Engine Fuel."
(b)Analysis. For purposes of inspection and testing, laboratory analyses shall be conducted using the methods
recognized by the American Society for Testing and Materials designation D 4814-02, "Standard Specification for
Automotive Spark-Ignition Engine Fuel."
(c)No person shall sell or offer for sale gasoline in this state that does not comply with the following requirements:
1.The total ethanol content of gasoline shall not exceed ten percent (10.0%), by volume;
2.The total methanol and co-solvents content of gasoline shall not exceed ten percent (10.0%), by volume;
3.The total methyl tertiary butyl ether (MTBE) content of gasoline shall not exceed fifteen percent (15.0%), by volume;
4.The total ethanol and methyl tertiary butyl ether (MTBE) content of gasoline shall not exceed twelve percent
(12.0%), by volume. . . .
Rule 5F-2.003, F.A.C., provides additionally in pertinent part:
. . . (3) Every retail gasoline dispenser shall have the grade designation of the gasoline being sold therefrom
conspicuously and firmly attached thereto. The octane rating of gasoline sold using the following grade designations
must meet the minimum octane rating indicated:

Grade DesignationMinimum Octane Rating
Premium, Super, Supreme, High Test91
Midgrade, Plus89
Regular, Unleaded87
(4)All racing gasoline or gasoline designed for special use that is kept, offered, or exposed for sale, or sold at
retail that does not meet standards established in 5F-2.001(i):
(a)may not be advertised or represented, in writing or orally, to be suitable for use in ordinary motor vehicles
or boat motors;
(b)shall be accompanied by a conspicuous sign on the dispenser stating the product does not meet gasoline
specifications; and

(c)may not be dispensed into vehicles or boats unless the appearance of said vehicles or boats indicates they
are used primarily for racing or special purposes.... [Emphasis supplied]
CONCLUSION
It is determined by the Department that, based on federal guidelines, the definition of gasoline is any mixture used as
a fuel in spark-ignition, internal combustion engines, which has an octane number not less than 75, and a lead content
not greater than 0.05 grams per gallon. None of the forty (40) gasoline products for which the generic MSDS and
specification sheets were provided comply with the definition of gasoline. As such, the forty (40) products are not
classified as gasoline, and are products which are prohibited for use in motor vehicles by the EPA. Because the
racing fuels are not defined as gasoline, and are prohibited for use in motor vehicles, each product does not meet the
definition of "motor fuel" as defined in s. 206.01(9), F.S., and is not subject to Florida fuel taxes. The sale of each
racing fuel is, however, subject to sales and use tax under the provisions of Chapter 212, F.S.
This response constitutes a Technical Assistance Advisement under s. ?213.22, F.S., which is binding on the
Department only under the facts and circumstances described in the request for this advice as specified in ?213.22,
F.S. Our response is based on those facts and the specific situation summarized above. You are advised that
subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this
advice is based may subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public records under
Chapter 119, F.S., which are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential
information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the
undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material and this
response, deleting names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,
Lynwood Taylor
Tax Law Specialist
Technical Assistance
and Dispute Resolution
LNT/lt
Control No. 59735