Scope - This guideline addresses the federal excise tax on the sale of gasoline.
Gasoline is defined to include gasoline and gasoline blendstocks.
Gasoline blendstocks are described in I.R.S. Publication 510, page 8. Separate tax guidelines cover the Massachusetts gasoline excise tax. The University takes the position that it may purchase gasoline in bulk quantities from certain wholesale distributors at a price that excludes the federal excise tax. A wholesale distributor includes any person who sells gasoline to users in bulk quantities and delivers into bulk storage tanks. To qualify for the bulk purchase exemption, the gasoline purchased must be used exclusively for University business and the wholesale distributor must be given an exemption certificate executed by an officer of the University.