Form FT-940: Certification of Use of Motor Fuel Purchased in Volume

Form FT-940, officially titled Certification of Use of Motor Fuel Purchased in Volume, is issued by the New York State Department of Taxation and Finance. It exists to document how bulk-purchased motor fuel is actually used once it leaves the seller’s hands. Because New York taxes motor fuel differently depending on whether it’s used for taxable highway purposes or for exempt purposes like off-road equipment, farming, or certain commercial operations, the state needs a paper trail showing the buyer’s intended use at the time of a volume purchase.

This form is not something a fuel seller fills out on their own. It’s a certification that the purchaser provides to the seller (typically a distributor or wholesaler) confirming how the fuel bought in bulk quantities will be used. The seller keeps this certification on file to support any tax treatment applied to that sale, whether that means the fuel was sold with tax included, tax-exempt, or subject to a reduced rate.

Who Needs to File Form FT-940

Businesses and individuals who purchase motor fuel in volume — meaning large quantities rather than routine retail fill-ups — are the ones who need to complete this certification. This typically includes:

• Companies operating fleets that buy fuel in bulk for both highway and non-highway equipment
• Farms purchasing fuel for agricultural machinery
• Construction or landscaping businesses using fuel for off-road vehicles
• Any entity buying fuel wholesale where the tax treatment depends on end use

If you’re a distributor or seller receiving one of these bulk orders, you’ll want this certification on hand in case the Department of Taxation and Finance ever audits your fuel sales records. Without it, sellers can have a hard time justifying why certain volume sales weren’t taxed at the standard rate.

When You Need to Use It

Form FT-940 comes into play specifically at the point of a volume fuel purchase where the buyer’s use of that fuel affects the applicable tax. It’s not meant for everyday gas station purchases — this is strictly for larger transactions where the seller needs written proof of intended use before applying any tax exemption or special rate.

Because motor fuel tax rules in New York can get complicated depending on how the fuel is stored, transported, and ultimately consumed, businesses that regularly deal with distributor bonds or refund claims often end up working with several related forms. If your business also handles distributor bonding requirements, it’s worth reviewing our explanation of the Bond of Distributor of Motor Fuel and/or Diesel Motor Fuel (Form AU-432), which covers a separate but related compliance obligation for fuel distributors.

How to Get and Complete Form FT-940

Form FT-940 is only available as a printable PDF — there’s no fillable digital version through the Tax Department’s site. That means once you download it, you’ll need to print it out and complete it by hand. Make sure to fill in the purchaser’s information clearly, specify the type and volume of fuel purchased, and describe the intended use in enough detail that it clearly supports the exemption or tax treatment being claimed.

Once completed and signed, the form should be provided directly to the seller or distributor rather than submitted to the state. The seller retains it as part of their tax records. If your business later needs to seek a refund on fuel taxes already paid — for example, on fuel sold to a government entity — you may also need to look into Form AU-619, which handles refund requests for taxes paid on qualifying fuel sales.

For businesses that deal with sales or use tax credits more broadly, it can also help to understand the related documentation required under Form AU-11-I instructions, since fuel tax exemptions sometimes intersect with broader use tax credit claims depending on how the fuel was purchased and applied.

Keeping accurate records tied to Form FT-940 protects both the buyer and the seller if the Department of Taxation and Finance requests documentation supporting the tax treatment of a bulk fuel transaction. Since there’s no digital submission option, printing extra copies and keeping them organized by purchase date is a practical habit for any business that regularly buys fuel in volume.