Tax Refund for a Power Take Off
A power take off (PTO) operation refers to auxiliary equipment added to a licensed motor vehicle that uses clear diesel fuel, gasoline or propane from the vehicle’s fuel tank(s) to operate PTO equipment, such as:
- cement mixers
- aerial buckets, lifts and cranes
- refrigeration units
- power vacuums, pumps and blowers
If you paid tax on fuel used in Ontario to operate auxiliary PTO equipment, you may be eligible for a refund.
Calculating a refund – PTO activity on or after July 1, 2017
Effective July 1, 2017, a PTO refund is calculated by applying a pre‑determined percentage allowance against the total fuel disbursed to the licensed vehicle containing the qualifying auxiliary equipment. The following gives the ministry allowances established according to an activity type (e.g., vacuum trucks, paper shredders, reefer units).
PTO allowance chart
| 40% | Vacuum/Hydro Vac Trucks over 600hp |
|---|---|
| 30% | Paper Shredders Ready Mix Trucks |
| 25% | Vacuum/Hydro Vac Trucks over 300 – 599hp |
| 20% | Cranes Rated over 11 tons capacity Hydracrete Pump Tow Trucks (Heavy Tows) |
| 15% | Blower Vacuum/Hydro Vac trucks up to 299hp |
| 10% | Carpet/Duct Cleaning & Mobile Washing Fire Vehicles Garbage Packers (Front/ Rear or Side Loaders) Loading/ Dumping Lugger Unit Pumping Reefer/ Temperature Controlled Roll Off Unit Salting/Sanding Stone Slingers Utility Vehicles (Aerial Buckets, Cranes Rated up to 11 tons capacity, Digger Derrick, Tow Trucks) Waste Disposal/ Recycling Well Drilling Winch Cable Truck |
| 5% | Auto Transport Line Painters Log Loaders Street Sweepers |
Please visit government of Ontario’s website for more information. https://www.fin.gov.on.ca/en/refund/pto/index.html. or contact the ministry at 1‑866‑ONT‑TAXS (1‑866‑668‑8297) if you do not see your equipment type listed or are uncertain which allowance may apply to your business.
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