A wide array of businesses depend on refrigerated trucks to deliver and collect goods from point A to point B. Regardless of your company size, if you use refrigerated trucks, you likely have money the government owes you.
When it comes to fuel excise tax recovery, refrigerated trucks are one of the leading sources of refunds. This is because so many industries, from florists to restaurants, use refrigerated trucks.
But also because the laws and regulations that surround this corner of taxes can vary so widely. The amount of refund you are owed for the fuel you require to operate your refrigerated vehicles can change by:
- State
- Business
- Adjustments to annual tax laws
And it’s hard for a professional without intricate knowledge of federal and state excise tax laws on equipment to maximize these opportunities.
So what businesses qualify, and what do you need to know about obtaining the fuel excise tax refund that you deserve? It starts by understanding these key points about refrigerated trucks, and how they are tied into your excise tax recovery.
Understanding Excise Tax
An excise tax applies to unique goods and services. It’s a tax built into the general cost of doing business. You may not even see or notice an excise tax in your everyday operations, but there’s a solid chance that – depending on your specific industry – it’s a tax that you pay all year long.
For example, a telephone bill may have a line item for a federal excise tax that is affiliated with local telephone service. Still, more subtle and routine business costs – like fuel – may have no differentiation at all between the total cost and the cost broken down by various taxes or fees.
There are several items you likely buy every day, for work or just at home, that has a federal excise tax included. This can consist of air travel tickets, alcohol, gambling wages, and, (most importantly), gasoline and fuel.
It’s important to note that an excise tax may seem similar to a sales tax on the service, but they are not identical.
Both forms of taxes are paid at the time of the transaction, and not with your annual tax return or paycheck. But unlike a sales tax, excise taxes are unique in that they only apply to particular services or goods.
Benefiting from the Fuel Excise Tax
With an understanding of what the excise tax entails, chances are that you can start to calculate in your head how much this relates to your business.
The key is to look at all different avenues of excise tax paid over a year, (and sometimes even further back), and to see how that applies to your eventual refund.
Companies that use refrigerated trucks can reap ample benefits, too, and these types of industries can range all across the board and can include the following:
- Food providers that deliver refrigerated trucks of goods to grocery stores, convenience stores, specialty markets, and other retailers.
- Foodservice companies that deliver refrigerated goods to restaurants, resorts, venues, and other destinations or food providers.
- Florists or landscapers that require refrigerated trucks to keep their plants and greenery fresh.
- Caterers and other service providers that require refrigeration to travel to varying sites.
- Medical suppliers that require refrigeration for keeping pharmaceuticals safe during transport.
- Alcohol or beverage providers.
- Beauty-industry companies that require refrigeration for hygiene products, like perfumes and cosmetics.
- Artwork and antique specialists that need to transport valuable goods in a safe and climate-controlled condition.
Simply put, companies that use refrigerated trucks do not have to be tied to the food industries. Several businesses benefit from having climate-controlled vehicles to transport their products. So, take stock of your business and see if any of the above scenarios, (or many more), applies to you.
Points to Remember
Remember, also, the use of refrigerated vehicles may very well be applied to operations both on and off the road.
As an example, you may not physically transport refrigerated goods hundreds of miles from one destination to another. Still, you may use unlicensed but refrigerated vehicles to move goods in a warehouse or to another site.
This can apply to major food retailers and providers. As well as any business that serves food regularly, like:
- Airlines
- Resorts
- Cruise lines
- Golf courses
- Other expansive businesses
So when you consider how fuel for refrigeration comes into play, assess all of the ways you may require refrigeration to keep goods safe and secure.
Most important, you need an expert’s hand to obtain the largest fuel excise tax refund possible. This is true, especially when it comes to:
- Refrigeration
- Vehicles
- Your business
We Can Help
At TIP, there are no upfront costs. Our expert team examines your business and determines ways to maximize your fuel excise tax recovery.
You have very little work to do to get the best refund possible! We’ll need a little paperwork at the start, and then our experienced team will take care of the rest.
Because federal excise tax recovery is our niche area of expertise, we have the knowledge required to take a closer examination of what you’re owed. We will ensure nothing is left on the table.
Bottom Line: It’s Time to Contact TIP
If you use refrigerated trucks or other vehicles for any aspect of your business, then it’s time to contact TIP to determine what we can do for you.
Friendly and professional, we’ll work hard to ensure that you can recover all the excise tax refund monies you are owed for the past year, and possibly beyond.