WEST virginia
legislature
2017 regular session
By
[
to the Committee on the Judiciary then Finance.
A BILL to amend and
reenact §11-14C-2 and §11-14C-9 of the Code of West Virginia, 1931, as amended,
all relating to exempting heating oil for residential use from the Motor Fuel
Excise Tax.
Be it enacted by the
Legislature of West Virginia:
That §11-14C-2 and
§11-14C-9 of the Code of West Virginia, 1931, as amended, be amended and
reenacted, all to read as follows:
ARTICLE 14C. MOTOR
FUEL EXCISE TAX.
PART I. GENERAL
PROVISIONS.
§11-14C-2. Definitions.
As used in this article and
unless the context requires otherwise, the following terms have the meaning
ascribed herein.
(1) "Agricultural
purposes" means the activities of:
(A) Cultivating the soil,
including the planting and harvesting of crops, for the commercial production
of food, fiber and ornamental woodland products;
(B) Using land for breeding
and management of farm livestock including dairy, apiary, equine or poultry
husbandry; and
(C) Using land for the
practice of horticulture including the growing of Christmas trees, orchards and
nursery stock. Agricultural purposes do
not include commercial forestry, growing of timber for commercial purposes or
other activity that normally would not be included in subdivision (A), (B) or
(C) of this definition.
(2) "Aircraft"
includes any airplane or helicopter.
(3) "Alcohol"
means motor fuel-grade ethanol or a mixture of motor fuel-grade ethanol and
methanol, excluding denaturant and water that is a minimum of ninety-eight
percent ethanol or methanol by volume.
(4) “Alternative fuel”
means a combustible gas or liquid that is used or suitable for use as a motor
fuel in an internal combustion engine or motor to propel or operate any form of
vehicle, machine or mechanical contrivance and includes, but is not limited to,
products commonly known as butane, propane, compressed natural gas, liquefied natural
gas, liquefied petroleum gas, natural gas hydrocarbons and derivatives, liquid
hydrocarbons derived from biomass, P-series fuels and hydrogen. “Alternative fuel” does not include diesel
fuel, gasoline, blended fuel, aviation fuel or any special fuel. For purposes of this article electricity is
not an alternative fuel.
(5) “Alternative-fuel bulk
end user” means a person who maintains storage facilities for alternative fuel
and uses part or all of the stored fuel to operate a motor vehicle.
(6) “Alternative-fuel
commercial refueling infrastructure" means property owned by a commercial
establishment and used for storing alternative fuels and for dispensing such
alternative fuels into the fuel tanks of vehicles owned by the same person or
entity that owns the alternative-fuel commercial refueling infrastructure or
into the fuel tanks of privately owned vehicles or commercial vehicles other
than those owned by the same person or entity that owns the alternative-fuel
commercial refueling infrastructure, or any combination thereof. “Alternative-fuel vehicle commercial
refueling infrastructure" includes, but is not limited to, compression
equipment, storage tanks and dispensing units for alternative fuel at the point
where the fuel is delivered: Provided, That the property is not located
on a private residence or private home.
“Alternative-fuel commercial refueling infrastructure" does not
include any building, infrastructure, equipment, apparatus, terminal or connections
for servicing, charging or providing electricity to plug-in hybrid electric
vehicles or electric vehicles.
“Alternative-fuel vehicle commercial refueling infrastructure"
includes alternative-fuel vehicle commercial refueling infrastructure property
as described in this subdivision which is owned by a lessor or landlord and
leased to or rented to a lessee or tenant as part of a residence for such
lessee or tenant.
(7) “Alternative-fuel home
refueling infrastructure" means property owned by a private individual for
personal use that is located at the individual’s private residence or private
home and used for storing and dispensing alternative fuels into fuel tanks of
the property owner’s motor vehicles.
This includes, but is not limited to, compression equipment, storage
tanks and dispensing units for alternative fuel at the point where the fuel is
delivered. For purposes of this article,
“alternative-fuel home refueling infrastructure" does not include any
building, infrastructure, equipment, apparatus, terminal or connections for
servicing, charging or providing electricity to plug-in hybrid electric
vehicles or electric vehicles.
“Alternative-fuel home refueling infrastructure" does not include
alternative-fuel vehicle refueling infrastructure property owned by a lessor or
landlord which is leased to or rented to a lessee or tenant as part of a
residence for such lessee or tenant.
(8) "Article" or
"this article" means article fourteen-c, chapter eleven of this code.
(9) "Assessment"
means a written determination by the commissioner of the amount of taxes owed
by a taxpayer.
(10) "Aviation
fuel" means aviation gasoline or aviation jet fuel.
(11) "Aviation
gasoline" means motor fuel designed for use in the operation of aircraft
other than jet aircraft and sold or used for that purpose.
(12) "Aviation jet
fuel" means motor fuel designed for use in the operation of jet or
turbo-prop aircraft and sold or used for that purpose.
(13) "Biodiesel
fuel" means motor fuel or mixture of motor fuels that is derived, in whole
or in part, from agricultural products or animal fats, or the wastes of such
products or fats, and is advertised as, offered for sale as, suitable for use
or used as motor fuel in an internal combustion engine.
(14) "Blended
fuel" means a mixture composed of gasoline or diesel fuel and another
liquid including, but not limited to, gasoline blend stocks, gasohol, ethanol,
methanol, fuel-grade alcohol, diesel fuel enhancers and resulting blends, other
than a de minimus amount of a product such as carburetor detergent or oxidation
inhibitor, that can be used as a motor fuel in a highway vehicle.
(15) "Blender"
means a person who produces blended motor fuel outside the bulk
transfer/terminal system.
(16) "Blending"
means the mixing of one or more petroleum products, with or without another
product, regardless of the original character of the product blended, if the
product obtained by the blending is capable of use in the generation of power
for the propulsion of a motor vehicle, an airplane or a marine vessel. Blending does not include mixing that occurs
in the process of refining by the original refiner of crude petroleum or the
blending of products known as lubricating oil in the production of lubricating
oils and greases.
(17) "Bulk plant"
means a motor fuel storage and distribution facility that is not a terminal and
from which motor fuel may be removed at a rack.
(18) "Bulk
transfer" means any transfer of motor fuel from one location to another by
pipeline tender or marine delivery within a bulk transfer/terminal system,
including, but not limited to, all of the following:
(A) Movement of motor fuel
from a refinery or terminal to a terminal by a marine vessel;
(B) Pipeline movements of
motor fuel from a refinery or terminal to a terminal;
(C) Book transfer of motor
fuel within a terminal between licensed suppliers prior to completion of
removal across the rack; and
(D) Two-party exchange
between licensed suppliers or between licensed suppliers and permissive
suppliers.
(19) "Bulk user"
means a person who maintains storage facilities for motor fuel and uses part or
all of the stored motor fuel to operate a motor vehicle, watercraft or
aircraft.
(20) "Bulk
transfer/terminal system" means the motor fuel distribution system
consisting of refineries, pipelines, marine vessels and terminals. Motor fuel in a refinery, a pipeline, a
terminal or a marine vessel transporting motor fuel to a refinery or terminal
is in the bulk transfer/terminal system.
Motor fuel in a motor fuel storage facility including, but not limited
to, a bulk plant that is not part of a refinery or terminal, in the motor fuel
supply tank of an engine or motor vehicle, in a marine vessel transporting
motor fuel to a motor fuel storage facility that is not in the bulk
transfer/terminal system, or in a tank car, rail car, trailer, truck or other
equipment suitable for ground transportation is not in the bulk
transfer/terminal system.
(21) "Carrier"
means an operator of a pipeline or marine vessel engaged in the business of
transporting motor fuel above the terminal rack.
(22) "Code" means
the Code of West Virginia, 1931, as amended.
(23) "Commercial
watercraft" means a watercraft employed in the business of commercial
fishing, transporting persons or property for compensation or hire or other
trade or business.
(24) "Commissioner"
or "Tax Commissioner" means the West Virginia State Tax Commissioner
or his or her delegate.
(25) "Compressed
natural gas" means natural gas that has been compressed and dispensed into
motor fuel storage containers and is advertised as, offered for sale as,
suitable for use as or used as an engine motor fuel.
(26) "Corporate or
partnership officer" means an officer or director of a corporation,
partner of a partnership or member of a limited liability company who as an
officer, director, partner or member is under a duty to perform on behalf of
the corporation, partnership or limited liability company, the tax collection,
accounting or remitting obligations.
(27) "Dead
storage" is the amount of motor fuel that cannot be pumped out of a motor
fuel storage tank because the motor fuel is below the mouth of the draw
pipe. The amount of motor fuel in dead
storage is two hundred gallons for a tank with a capacity of less than ten
thousand gallons and four hundred gallons for a tank with a capacity of ten
thousand gallons or more.
(28)
"Denaturants" means and includes gasoline, natural gasoline, gasoline
components or toxic or noxious materials added to motor fuel-grade ethanol to
make it unsuitable for beverage use but not unsuitable for automotive use.
(29) "Designated
inspection site" means a state highway inspection station, weigh station,
agricultural inspection station, mobile station or other location designated by
the commissioner to be used as a motor fuel inspection site.
(30) "Destination
state" means the state, territory or foreign country to which motor fuel
is directed for delivery into a storage facility, a receptacle, a container or
a type of transportation equipment for the purpose of resale or use. The term does not include a tribal
reservation of a recognized Native American tribe.
(31) "Diesel
fuel" means a liquid that is advertised as, offered for sale as, sold for
use as, suitable for use as or used as a motor fuel in a diesel-powered highway
vehicle or watercraft. The term includes
#1 fuel oil, #2 fuel oil, undyed diesel fuel and kerosene but does not include
gasoline or aviation fuel.
(32)
"Distributor" means a person who acquires motor fuel from a licensed
supplier, permissive supplier or from another licensed distributor for
subsequent sale or use.
(33) "Diversion"
means transporting motor fuel outside a reasonably direct route from the source
to the destination state.
(34) "Division"
or "State Tax Division" means the Tax Division of the West Virginia
Department of Revenue.
(35) "Dyed diesel
fuel" means diesel fuel that meets the dyeing and marking requirements of
section 4082, Title 26, United States Code, regardless of how the diesel fuel
was dyed.
(36) "End seller"
means the person who sells motor fuel to the ultimate user of the motor fuel.
(37) "Export"
means to obtain motor fuel in West Virginia for sale or other distribution in
another state, territory or foreign country.
(38) "Exporter"
means a person that exports motor fuel from this state. The seller is the exporter of motor fuel delivered
out-of-state by or for the seller and the purchaser is the exporter of motor
fuel delivered out-of-state by or for the purchaser.
(39) "Fuel" means
motor fuel.
(40) "Fuel-grade
ethanol" means the ASTM standard in effect on the effective date of this
article as the D-4806 specification for denatured motor fuel grade ethanol for
blending with gasoline.
(41) "Fuel supply
tank" means a receptacle on a motor vehicle from which motor fuel is
supplied for the propulsion of the motor vehicle.
(42) "Gallon"
means a unit of liquid measure as customarily used in the United States
containing two hundred thirty-one cubic inches by volume and expresses the
volume at 60 degrees Fahrenheit.
(43) "Gasohol"
means a blended motor fuel composed of gasoline and motor fuel alcohol.
(44) "Gasoline"
means a product commonly or commercially known as gasoline, regardless of
classification, that is advertised as, offered for sale as, sold for use as,
suitable for use as or used as motor fuel in an internal combustion engine,
including gasohol, but does not include special fuel as defined in this
section.
(45) "Gasoline blend
stocks" includes any petroleum product component of gasoline, such as
naphtha, reformate, or toluene, listed in Treas. Reg. §48.4081-1(c) (3) that can
be blended for use in a motor fuel. The
term does not include any substance that will be ultimately used for consumer
nonmotor fuel use and is sold or removed in drum quantities of fifty-five
gallons or less at the time of the removal or sale.
(46) "Gallon
equivalent" means the amount of an alternative fuel that is considered to
be the equivalent of a gallon of gasoline according to the National Institute
of Standards and Technology Handbook 130 or pursuant to guidelines issued by
the Tax Commissioner.
(47) "Gross
gallons" means the total measured product, exclusive of any temperature or
pressure adjustments, considerations or deductions, in U. S. gallons.
(48) "Governmental
entity" means this state or a political subdivision thereof or the United
States or its commissioners, agencies and instrumentalities.
(49) "Heating
oil" means any combustible liquid, including, but not limited to, #1 fuel
oil, #2 dyed fuel oil and kerosene that is burned in a boiler, furnace or stove
for heating or industrial processing purposes.
(50) "Highway"
means every way or place of whatever nature open to the use of the public for
purposes of vehicular travel in this state including the streets and alleys in
towns and cities.
(51) "Highway
vehicle" means any self-propelled vehicle, trailer or semitrailer that is
designed or used for transporting persons or property over the public highway
and includes all vehicles subject to registration under article three, chapter
seventeen-a of this code.
(52) "Import"
means to bring motor fuel into this state by motor vehicle, marine vessel,
pipeline or any other means. Import does
not include bringing motor fuel into this state in the motor fuel supply tank
of a motor vehicle if the motor fuel is used to power that motor vehicle.
(53) "Importer"
means a person that imports motor fuel into this state. The seller is the importer for motor fuel
delivered into this state from outside of this state by or for the seller and
the purchaser is the importer for motor fuel delivered into this state from
outside of this state by or for the purchaser.
(54) "Import
verification number" means the number assigned by the commissioner to a
single transport vehicle delivery into this state from another state upon
request for an assigned number by an importer or the transporter carrying
taxable motor fuel into this state for the account of an importer.
(55) "In this
state" means the area within the borders of West Virginia including all
territory within the borders of West Virginia that is owned by the United States
of America.
(56) "Invoiced
gallons" means the gallons actually billed on an invoice for payment.
(57) "Licensee"
means a person licensed by the commissioner pursuant to section ten of this
article.
(58) "Liquid"
means a substance that is liquid above its freezing point.
(59) "Liquefied
natural gas" means natural gas that has been liquefied at -126.1 degrees
centigrade and stored in insulated cryogenic tanks for use as an engine motor
fuel.
(60) "Motor
carrier" means a vehicle used, designated or maintained for the
transportation of persons or property and having two axles and a gross vehicle
weight exceeding twenty-six thousand pounds or having three or more axles
regardless of weight or used in combination when the weight of the combination
exceeds twenty-six thousand pounds or registered gross vehicle weight, and any
aircraft, barge or other watercraft or railroad locomotive transporting
passengers or freight in or through this state: Provided, That the gross
vehicle weight rating of the vehicles being towed is in excess of ten thousand
pounds. The term “motor carrier” does
not include any type of recreational vehicle.
(61) "Motor fuel"
means gasoline, blended fuel, aviation fuel, any special fuel and alternative
fuel but does not include heating fuel used exclusively for heating a
private dwelling.
(62) "Motor fuel
transporter" means a person who transports motor fuel outside the bulk
transfer/terminal system by means of a transport vehicle, a railroad tank car
or a marine vessel.
(63) "Motor
vehicle" means automobiles, motor carriers, motor trucks, motorcycles and
all other vehicles or equipment, engines or machines which are operated or
propelled by combustion of motor fuel.
(64) "Net
gallons" means the amount of motor fuel measured in gallons when adjusted
to a temperature of sixty degrees Fahrenheit and a pressure of fourteen and
seven-tenths pounds pressure per square inch.
(65) "Permissive
supplier" is a person who may not be subject to the taxing jurisdiction of
this state but who meets both of the following requirements: (A) Is registered
under Section 4101 of the Internal Revenue Code for transactions in motor fuel
in the bulk transfer/terminal system; and (B) a position holder in motor fuel
only located in another state or a person who receives motor fuel only in
another state pursuant to a two-party exchange: Provided, That a person
is classified as a supplier if it has or maintains, occupies or uses, within
this state, directly or by a subsidiary, an office, distribution house, sales
house, warehouse, or other place of business, or any agent or representative
(by whatever name called) operating within this state under the authority of
the supplier or its subsidiary.
(66) "Person"
means an individual, firm, cooperative, association, corporation, limited
liability corporation, estate, guardian, executor, administrator, trust,
business trust, syndicate, partnership, limited partnership, copartnership,
organization, limited liability partnership, joint venture, receiver and
trustee in bankruptcy. "Person"
also means a club, society or other group or combination acting as a unit, a
public body including, but not limited to, this state and any other state and
an agency, commissioner, institution, political subdivision or instrumentality
of this state or any other state and, also, an officer, employee or member of
any of the foregoing who, as an officer, employee or member, is under a duty to
perform or is responsible for the performance of an act prescribed by the
provisions of this article.
(67) "Position
holder" means the person who holds the inventory position in motor fuel in
a terminal as reflected on the records of the terminal operator. A person holds the inventory position in
motor fuel when that person has a contract with the terminal operator for the
use of storage facilities and terminaling services for motor fuel at the
terminal. The term includes a terminal
operator who owns motor fuel in the terminal.
(68) "Principal"
means:
(A) If a partnership, all
its partners;
(B) If a corporation, all
its officers, directors, and controlling direct or indirect owners;
(C) If a limited liability
company, all its members; or
(D) An individual.
(69)
“Producer/manufacturer” means a person who produces, refines, blends, distills,
manufactures or compounds motor fuel.
(70) “Provider of
alternative fuel” means a person who does one or more of the following:
(A) Acquires alternative
fuel for sale or delivery to an alternative-fuel bulk end user or an
alternative-fuel retailer;
(B) Maintains storage
facilities for alternative fuel including alternative-fuel home refueling
infrastructures and alternative-fuel commercial refueling infrastructures, part
or all of which the person uses or sells to someone other than an
alternative-fuel bulk end user or an alternative-fuel retailer to operate a
highway vehicle;
(C) Sells alternative fuel
and uses part of the fuel acquired for sale to operate a highway vehicle by
means of a fuel supply line from the cargo tank of the vehicles to the engine
of the vehicle;
(D) Imports alternative
fuel into this state by a means other than the usual tank or receptacle
connected with the engine of a highway vehicle for use by that person to
operate a highway vehicle.
(71) "Rack" means
a mechanism for delivering motor fuel from a refinery, terminal, marine vessel
or bulk plant into a transport vehicle, railroad tank car or other means of
transfer that is outside the bulk transfer/terminal system.
(72) "Railroad
locomotive" means diesel-powered equipment or machinery that rides on
railroad rails and includes a switching engine.
(73) "Receive"
means acquisition of ownership or possession of motor fuel.
(74) "Refiner"
means a person who owns, operates or otherwise controls a refinery.
(75) "Refinery"
means a facility for the manufacture or reprocessing of finished or unfinished
petroleum products usable as motor fuel and from which motor fuel may be
removed by pipeline or marine vessel or at a rack.
(76) "Removal"
means a physical transfer other than by evaporation, loss or destruction. A physical transfer to a transport vehicle or
other means of conveyance outside the bulk transfer/terminal system is complete
upon delivery into the means of conveyance.
(77) "Retailer"
means a person who sells motor fuel at retail or dispenses motor fuel at a retail
location.
(78) "Retailer of
alternative fuel" means a person who maintains storage facilities,
including alternative-fuel vehicle commercial refueling infrastructure, for
alternative fuel and who sells the fuel at retail or dispenses the fuel at a
retail location to operate a motor vehicle.
(79) "Special
fuel" means a gas or liquid, other than gasoline, used or suitable for use
as motor fuel in an internal combustion engine or motor to propel or operate
any form of vehicle, machine, or mechanical contrivance and includes products
commonly known as natural or casing-head gasoline, diesel fuel, dyed diesel
fuel, biodiesel fuel, transmix, methanol, ethanol, methanol fuel, M100, ethanol
fuel, E100, ethanol fuel blend, E85 and any fuel mixture that contains eighty-five
percent or more alcohol by volume when combined with gasoline or other fuels
and liquid fuel derived from coal through the Fischer-Tropsch process. "Special fuel" does not include
alternative fuel or any petroleum product or chemical compound such as alcohol,
industrial solvent, heavy furnace oil or lubricant, unless blended in or sold
for use as motor fuel in an internal combustion engine.
(80) "State" or
"this state" means the State of West Virginia.
(81) "Supplier"
means a person that is:
(A) Subject to the general
taxing jurisdiction of this state;
(B) Registered under
Section 4101 of the Internal Revenue Code for transactions in motor fuel in the
bulk transfer/terminal distribution system; and
(C) One of the following:
(i) A position holder in
motor fuel in a terminal or refinery in this state and may concurrently be a
position holder in motor fuel in another state; or
(ii) A person who receives
motor fuel in this state pursuant to a two-party exchange.
A terminal operator is not
a supplier based solely on the fact that the terminal operator handles motor
fuel consigned to it within a terminal.
(82) "Tax" or
"this tax" is the motor fuel excise tax imposed by this article and
includes within its meaning interest and additions to tax and penalties unless
the context requires a more limited meaning.
(83) "Taxpayer"
means a person required to file a return for the tax imposed by this article or
a person liable for payment of the tax imposed by this article.
(84) "Terminal"
means a motor fuel storage and distribution facility to which a terminal
control number has been assigned by the Internal Revenue Service, to which
motor fuel is supplied by pipeline or marine vessel and from which motor fuel
may be removed at a rack.
(85) "Terminal
operator" means a person who owns, operates or otherwise controls a
terminal.
(86) "Transmix"
means: (A) The buffer or interface between two different products in a pipeline
shipment; or (B) a mix of two different products within a refinery or terminal
that results in an off-grade mixture.
(87) "Transport
vehicle" means a vehicle designed or used to carry motor fuel over the
highway and includes a straight truck, a straight truck/trailer combination and
a semitrailer combination rig.
(88) "Trustee"
means a person who is licensed as a supplier or a permissive supplier and
receives tax payments from and on behalf of another pursuant to section
twenty-four of this article.
(89) "Two-party
exchange" means a transaction in which motor fuel is transferred from one
licensed supplier or permissive supplier to another licensed supplier or
permissive supplier pursuant to an exchange agreement; and
(A) Includes a transfer
from the person who holds the inventory position in taxable motor fuel in the
terminal as reflected on the records of the terminal operator;
(B) Is completed prior to
removal of the product from the terminal by the receiving exchange partner; and
(C) Is recorded on the
terminal operator's books and records with the receiving exchange partner as
the supplier that removes the motor fuel across the terminal rack for purposes
of reporting the transaction to this state.
(90) "Use" means
the actual consumption or receipt of motor fuel by a person into a motor
vehicle, aircraft or watercraft.
(91) "Watercraft"
means any vehicle used on waterways.
§11-14C-9. Exemptions
from tax; claiming refunds of tax.
(a) Per se exemptions
from flat rate component of tax. — Sales of motor fuel to the following, or
as otherwise stated in this subsection, are exempt per se from the flat rate of
the tax levied by section five of this article and the flat rate may not be
paid at the rack:
(1) All motor fuel exported
from this state to any other state or nation: Provided, That the
supplier collects and remits to the destination state or nation the appropriate
amount of tax due on the motor fuel transported to that state or nation. This
exemption does not apply to motor fuel which is transported and delivered
outside this state in the motor fuel supply tank of a highway vehicle;
(2) Sales of aviation fuel;
(3) Sales of dyed special
fuel; and
(4) Sales of propane unless
sold for use in a motor vehicle; and
(5) Sales of heating
fuel for use in heating private dwellings.
(b) Per se exemptions
from variable component of tax. — Sales of motor fuel to the following are
exempt per se from the variable component of the tax levied by section five of
this article and the variable component may not be paid at the rack:
(1) All motor fuel exported from this state to any other
state or nation: Provided, That the supplier collects and remits to the
destination state or nation the appropriate amount of tax due on the motor fuel
transported to that state or nation. This exemption does not apply to motor
fuel which is transported and delivered outside this state in the motor fuel
supply tank of a highway vehicle; and
(2) All heating fuel to
be used to heat private dwellings.
(c) Refundable
exemptions from flat rate component of tax. — A person having a right or
claim to any of the following exemptions from the flat rate component of the
tax levied by section five of this article shall first pay the tax levied by
this article and then apply to the Tax Commissioner for a refund:
(1) The United States or
agency thereof: Provided, That if the United States government, or
agency or instrumentality thereof, does not pay the seller the tax imposed by
section five of this article on a purchase of motor fuel, the person selling
tax previously paid motor fuel to the United States government, or its agencies
or instrumentalities, may claim a refund of the flat rate component of tax
imposed by section five of this article on those sales;
(2) A county government or
unit or agency thereof;
(3) A municipal government
or any agency thereof;
(4) A county board of
education;
(5) An urban mass
transportation authority created pursuant to the provisions of article
twenty-seven, chapter eight of this code;
(6) A municipal, county,
state or federal civil defense or emergency service program pursuant to a
government contract for use in conjunction therewith or to a person who is
required to maintain an inventory of motor fuel for the purpose of the program:
Provided, That motor fueling facilities used for these purposes are not
capable of fueling motor vehicles and the person in charge of the program has
in his or her possession a letter of authority from the Tax Commissioner
certifying his or her right to the exemption. In order for this exemption to
apply, motor fuel sold under this subdivision and subdivisions (1) through (5),
inclusive, of this subsection shall be used in vehicles or equipment owned and
operated by the respective government entity or government agency or authority;
(7) All invoiced gallons of
motor fuel purchased by a licensed exporter and subsequently exported from this
state to any other state or nation: Provided, That the exporter has paid
the applicable motor fuel tax to the destination state or nation prior to
claiming this refund or the exporter has reported to the destination state or
nation that the motor fuel was sold in a transaction not subject to tax in that
state or nation. A refund may not be granted on motor fuel which is transported
and delivered outside this state in the motor fuel supply tank of a highway
vehicle;
(8) All gallons of motor
fuel used and consumed in stationary off-highway turbine engines;
(9) All gallons of fuel
used for heating any public or private dwelling, building or other premises;
(10) All gallons of fuel
used for boilers;
(11) All gallons of motor
fuel used as a dry cleaning solvent or commercial or industrial solvent;
(12) All gallons of motor
fuel used as lubricants, ingredients or components of a manufactured product or
compound;
(13) All gallons of motor
fuel sold for use or used as a motor fuel for commercial watercraft;
(14) All gallons of motor
fuel sold for use or consumed in railroad diesel locomotives;
(15) All gallons of motor
fuel purchased in quantities of twenty-five gallons or more for use as a motor
fuel for internal combustion engines not operated upon highways of this state;
(16) All gallons of motor
fuel purchased in quantities of twenty-five gallons or more and used to power a
power take-off unit on a motor vehicle. When a motor vehicle with auxiliary
equipment uses motor fuel and there is no auxiliary motor for the equipment or
separate tank for a motor, the person claiming the refund may present to the
Tax Commissioner a statement of his or her claim and is allowed a refund for
motor fuel used in operating a power take-off unit on a cement mixer truck or garbage
truck equal to twenty-five percent of the tax levied by this article paid on
all motor fuel used in such a truck;
(17) Motor fuel used by a
person regularly operating a vehicle under a certificate of public convenience
and necessity or under a contract carrier permit for transportation of persons
when purchased in an amount of twenty-five gallons or more: Provided,
That the amount refunded is equal to 6 cents per gallon: Provided, however,
That the gallons of motor fuel have been consumed in the operation of urban and
suburban bus lines and the majority of passengers use the bus for traveling a
distance not exceeding forty miles, measured one way, on the same day between
their places of abode and their places of work, shopping areas or schools; and
(18) All gallons of motor
fuel that are not otherwise exempt under subdivisions (1) through (6),
inclusive, of this subsection and that are purchased and used by any bona fide
volunteer fire department, nonprofit ambulance service or emergency rescue
service that has been certified by the municipality or county wherein the bona
fide volunteer fire department, nonprofit ambulance service or emergency rescue
service is located.
(d) Refundable
exemptions from variable rate component of tax. — Any of the following persons
may claim an exemption from the variable rate component of the tax levied by
section five of this article on the purchase and use of motor fuel by first
paying the tax levied by this article and then applying to the Tax Commissioner
for a refund.
(1) The United States or
agency thereof: Provided, That if the United States government, or
agency or instrumentality thereof, does not pay the seller the tax imposed by
section five of this article on any purchase of motor fuel, the person selling
tax previously paid motor fuel to the United States government, or its agencies
or instrumentalities, may claim a refund of the variable rate of tax imposed by
section five of this article on those sales.
(2) This state and its
institutions;
(3) A county government or
unit or agency thereof;
(4) A municipal government
or agency thereof;
(5) A county board of
education;
(6) An urban mass
transportation authority created pursuant to the provisions of article
twenty-seven, chapter eight of this code;
(7) A municipal, county,
state or federal civil defense or emergency service program pursuant to a
government contract for use in conjunction therewith, or to a person who is
required to maintain an inventory of motor fuel for the purpose of the program:
Provided, That fueling facilities used for these purposes are not
capable of fueling motor vehicles and the person in charge of the program has
in his or her possession a letter of authority from the Tax Commissioner
certifying his or her right to the exemption;
(8) A bona fide volunteer
fire department, nonprofit ambulance service or emergency rescue service that
has been certified by the municipality or county where the bona fide volunteer
fire department, nonprofit ambulance service or emergency rescue service is
located;
(9) All invoiced gallons of
motor fuel purchased by a licensed exporter and subsequently exported from this
state to any other state or nation: Provided, That the exporter has paid
the applicable motor fuel tax to the destination state or nation prior to claiming
this refund. A refund may not be granted on motor fuel which is transported and
delivered outside this state in the motor fuel supply tank of a highway
vehicle; or
(10) Beginning on January
1, 2018, all gallons of motor fuel sold for use or consumed in railroad diesel
locomotives: Provided, That the refundable exemption contained in this
subdivision may not exceed an aggregate amount of $4,300,000 in any year to all
taxpayers claiming the exemption and that if more than an aggregate amount of
$4,300,000 is appropriately claimed in any year, then the refundable exemption
shall be distributed proportionately to the taxpayers so that the total
aggregate refund is $4,300,000 in that year.
The Tax Commissioner may propose rules for legislative approval in
accordance with article three, chapter twenty-nine-a of this code that the Tax
Commissioner considers necessary to administer the exemption contained in this
subdivision.
(e) The provision in
subdivision (9), subsection (a), section nine, article fifteen of this chapter
that exempts as a sale for resale those sales of gasoline and special fuel by a
distributor or importer to another distributor does not apply to sales of motor
fuel under this article.
NOTE: The purpose of this bill is
to exempt heating oil used for residential purposes from the Motor Fuel Excise
Tax.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.