How To Buy Diesel Fuel and Kerosene Tax Free You buy dyed diesel fuel and dyed keroseneexcise tax free. You must use them only for a nontaxable use,including use on a farm for farming purposes. If you use the dyed fuelfor a taxable use, you could be subject to the excise tax and apenalty. For example, if a truck used on a farm for farming purposesis also used on the highways (even though in connection with operatingthe farm), tax applies to the diesel fuel used (or sold for use) inoperating the truck on the highways. The fuel was used off the farmfor a taxable use. You can buy undyed diesel fuel and undyedkerosene tax free for use on a farm for farming purposes from aregistered ultimate vendor. This applies to fuel bought by any of thefollowing persons. The owner, tenant, or operator of a farm for use on a farmfor any of the purposes listed earlier under Farmingpurposes. Any other person for use on a farm for any of the purposesin items (1) and (2) listed earlier under Farmingpurposes. You must give the vendor a signed certificate, which should besubstantially the same as the sample certificate shown in Table18-3. You can include the certificate as part of anybusiness records you normally keep to document a sale and purchase. You cannot claim a credit or refund for the excise taxon diesel fuel or kerosene used on a farm for farming purposes. Theregistered ultimate vendor who sells you the fuel claims the credit orrefund.