Collection and Refunds of the Fuel Tax Using Paper Forms
If, when making a retail sale of fuel, the required documents are presented at the time of the sale and the Indian, council or entity is found to be eligible for the Program after you have checked the eligibility, the exemption can be granted. In such a case, you must not collect the fuel tax on the sale. If, however, the exemption must be denied, you must collect the fuel tax.
In the latter case, the Indian, council or entity can apply for a refund of the fuel tax paid by filing an Application for a Refund of the Fuel Tax Paid by an Indian, a Band Council, a Tribal Council or a Band- Empowered Entity (form CA-90-V).
If you grant an exemption when in fact it should have been denied, you will not be allowed a refund of the amount equal to the tax on the sale.