Gasoline And Special Fuel Tax Restructuring

The act restructures the excise tax on gasoline and special fuel (fuels) by:

• Modifying the point of taxation;
• Eliminating the 3 tax deferred transactions;
• Exempting the tax from the import or removal of fuels by bulk transfer to, from, or within a terminal or refinery in certain circumstances;
• Permitting the 2% allowance to cover losses for terminals that are outside of the state;
• Requiring a terminal operator to verify that the person receiving the fuels is a licensee or is exempt from taxation;
• Specifying when the tax is imposed on an importer, blender, seller of liquefied petroleum gas or natural gas, user, and other distributor;
• Harmonizing provisions applicable to the exemption for governments;
• Explicitly identifying certain fuels used in aircrafts as being exempt;
• Codifying that a distributor has the burden of proving that fuels are exempt;
• Codifying the exemption for the removal of fuels from a terminal by a licensed exporter exclusively for delivery to another state;
• Requiring a terminal operator to be licensed, which is the current practice;
• Consolidating the penalties for acting without a license;
• Making conforming changes related to the aforementioned changes;
• Reorganizing and relocating provisions; and
• Modernizing language.
  (Note: This summary applies to this bill as enacted.)