Hawaii Exemption Certificate for Diesel Oil and Alternative Fuels

Exemption Certificate for Diesel Oil and Alternative Fuels
Form M-38, Rev 2019, Exemption Certificate For Diesel Oil and Alternative Fuel Used Off Public Highways
Clear Form
FORM M-38
(REV. 2019)

  Year

STATE OF HAWAII
DEPARTMENT OF TAXATION

20  

EXEMPTION CERTIFICATE
FOR DIESEL OIL AND ALTERNATIVE FUEL USED OFF PUBLIC HIGHWAYS
(Chapter 243, HRS)

Distributor should retain this Exemption Certificate for Distributor’s files. Do NOT send to the Department of Taxation.
Transactions are subject to audit by the Department of Taxation.
Name of individual, corporation, or partnership

Hawaii Tax I.D. No. (if any)

PREPARE THIS CERTIFICATE
IN DUPLICATE AS FOLLOWS:

Name under which business is operated

Please
Print or
Type

1. Original for Distributor

Business address (Number and Street)

2. Copy for Taxpayer
City, State, Postal/ZIP Code

Island

Name of Distributor

For filing requirements, see the
instructions below for When to
Furnish a Certificate.

This certificate is hereby issued in the foregoing name indicated above for the purchase of

and

(Type of Fuel)

said person affirms that the use of such fuel purchased is for operating a motor vehicle or motor vehicles in areas other than
upon the public highways of the State. It is further understood that the misuse of this certificate will lead to its revocation
and/or the penalties provided by law.

	 I declare, under the penalties set forth in section 231-36, HRS, that this is a true and correct certificate, prepared in
accordance with the provisions of chapter 243, HRS, the Fuel Tax Law, and chapter 18-243, HAR.
____________________________________________
Signature	

__________________________________________
Title	

_______________________
Date

INSTRUCTIONS FOR FUEL EXEMPTION CERTIFICATE
(FORM M-38)
	

Alternative Fuel Definition: “Alternative fuel” means methanol, denatured ethanol, and other alcohols; mixtures containing 85 percent or more by volume of methanol,
denatured ethanol, and other alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; biodiesel; mixtures containing
20 percent or more by volume of biodiesel with diesel or other fuels; fuels (other than alcohol) derived from biological materials; and any other fuel that is substantially not a
petroleum product and that the governor determines would yield a substantial energy security benefits or substantial environmental benefits.

1.	 General Rule.  The following persons shall furnish an Exemption Certificate (Form M-38) to the distributor thereof as provided under sections 243-4(b) and (c), HRS:
a.	 Every purchaser of diesel oil who uses such fuel in a motor vehicle in areas other than upon the public highways of the State, or
b.	 Every purchaser of alternative fuel who uses such fuel in an internal combustion engine or a motor vehicle in areas other than upon the public highways of the State.
2.	 Exception. An Exemption Certificate shall not be required if alternative fuel is used for fuel and heating purposes and not used in operating an internal combustion
engine.
3.	 When to Furnish a Certificate. An Exemption Certificate shall be furnished to the distributor annually or whenever a change is anticipated in the use of the fuel. For
example, whenever a change is anticipated from highway use to off highway use or from off highway to highway use, the purchaser shall notify the distributor in writing to this
effect.
4.	 Failure to Furnish Certificate. In the event an Exemption Certificate is not or cannot be furnished to the distributor, the tax shall be imposed upon all sales for operating a
motor vehicle and collected as if the fuel is to be used for operating a motor vehicle upon the public highways of the State.
5.	 Refund of Taxes or Liability for Additional Taxes.
a.	 A purchaser may obtain a refund of all taxes imposed under sections 243-4(b) (1) through (4) and 243-4(c) (1) and (2), HRS, by filing Form M-36, Combined Claim
for Refund of Fuel Taxes Under Chapter 243, HRS, with the Hawaii Department of Taxation in a situation where: (1) The tax was imposed and collected because the
purchaser failed to furnish an Exemption Certificate but, in fact, the fuel was ultimately used off the public highways, or (2) The fuel purchased was initially intended for
use upon the public highways but was subsequently used off the public highways.
b.	 Every purchaser of diesel oil or alternative fuel who furnishes an Exemption Certificate to a distributor for the purchase of fuel initially intended for use off the public
highways but subsequently uses such fuel upon the public highways shall be liable for any additional taxes arising from the taxable use. In such event, the purchaser
shall pay the additional taxes imposed by sections 243-4(b) (1) through (4) and 243-4(c) (1) and (2), HRS, by filing Form M-22, Quarterly Tax Return for Additional Fuel
Taxes Due, with the Hawaii Department of Taxation.
c.	 Forms M-36 and M-22 are to be filed on an as needed basis only. They do not need to be filed if there is no refund request or additional tax due for the tax period.
d.	 Forms M-36 and M-22 are to be filed by fuel purchasers only. These forms should NOT be filed by fuel distributors as a substitute for Form M-20A, Monthly Return of
Liquid Fuel Tax.
6.	 Purchase of More than One Type of Fuel.  If both diesel oil and alternative fuel are purchased for use off the public highways (in motor vehicles or internal combustion
engines), separate Exemption Certificates shall be furnished to the distributor covering the use of each fuel.
7.	 Additional Information to be Submitted by Purchaser. If the fuel is not used off the public highways, the purchaser shall, in addition to furnishing an Exemption Certificate
to the distributor, furnish a separate statement at the time of each purchase showing:
a.	 Breakdown as to the diesel oil to be used upon the public highways and/or off the public highways.
b.	 Breakdown as to the alternative fuel to be used upon the public highways and/or off the public highways (operating an internal combustion engine).

FORM M-38