PRINCETON, NJ - NAFA Fleet Management Association sought clarification on two issues of importance to public sector fleet managers: the sale of taxable fuel to state and local governments and fuel resale to other state and local governments. The Association received confirmation from the Office of Chief Counsel for the Internal Revenue Service that sales of fuel from one jurisdiction to another are permissible. The IRS said it permits state-to-state (including county and municipal governments) sales, with both being tax exempt. However, the IRS also said that state or local governments may not sell tax-free fuel to a federal agency.

The IRS was responding to a memorandum sent by NAFA's U.S. Legislative Counsel sent on Aug. 17.

NAFA retains experienced legislative representatives in Washington, D.C., and Ottawa to coordinate vital information on laws, regulations, and other government activity relating to fleets. The Association's legislative team not only keeps its membership up-to-date on legislation that can affect fleet managers, but often plays an active role with pending legislation, according to NAFA.