Coloured Diesel for Municipalities

Res #: 19-05M
Number: 19
Year: 2005
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Finance

Resolution No. 19-05M

WHEREAS, municipal governments are required to pay a road tax when purchasing diesel fuel; and

WHEREAS, municipal governments are purchasing diesel to maintain their own road system; and

WHEREAS, custom sprayers are allowed to make application for a permit to use coloured diesel; and

WHEREAS, municipal governments should also be granted the opportunity to make application for a permit to use coloured diesel in municipal owned equipment;

THEREFORE BE IT RESOLVED, that SARM lobby the provincial government to ensure that all municipal governments are allowed to purchase and use coloured diesel in municipal equipment when conducting maintenance on their road systems.

Response from the Honourable Harry Van Mulligen, Minister of Finance:

We appreciate the reasons for the request to use tax-free marked diesel fuel in road maintenance equipment. Rural municipalities play an important role in ensuring we have a safe and reliable transportation system. However, allowing rural municipalities to use tax-free marked diesel fuel in their equipment would not only reduce the Province's revenues, but it could also set a precedent for similar requests from other sectors. As a result, less money would be available to fund health care, education and other essential programs and services.