Section 142.800

Title X TAXATION AND REVENUE

Chapter 142

Effective - 28 Aug 2017, 3 histories   

  142.800.  Definitions. — As used in this chapter, the following words, terms and phrases have the meanings given:

  (1)  "Agricultural purposes", clearing, terracing or otherwise preparing the ground on a farm; preparing soil for planting and fertilizing, cultivating, raising and harvesting crops; raising and feeding livestock and poultry; building fences; pumping water for any and all uses on the farm, including irrigation; building roads upon any farm by the owner or person farming the same; operating milking machines; sawing wood for use on a farm; producing electricity for use on a farm; movement of tractors, farm implements and nonlicensed equipment from one field to another;

  (2)  "Alternative fuel", electricity, liquefied petroleum gas (LPG or LP gas), compressed natural gas product, or a combination of liquefied petroleum gas and a compressed natural gas or electricity product used in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance.  It includes all forms of fuel commonly or commercially known or sold as butane, propane, or compressed natural gas;

  (3)  "Aviation fuel", any motor fuel specifically compounded for use in reciprocating aircraft engines;

  (4)  "Blend stock", any petroleum product component of motor fuel, such as naphtha, reformat, toluene or kerosene, that can be blended for use in a motor fuel without further processing.  The term includes those petroleum products presently defined by the Internal Revenue Service in regulations pursuant to 26 U.S.C., Sections 4081 and 4082, as amended.  However, the term does not include any substance that:

  (a)  Will be ultimately used for consumer nonmotor fuel use; and

  (b)  Is sold or removed in drum quantities (fifty-five gallons) or less at the time of the removal or sale;

  (5)  "Blended fuel", a mixture composed of motor fuel and another liquid including blend stock, other than a de minimis amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle.  This term includes but is not limited to gasohol, ethanol, methanol, fuel grade alcohol, diesel fuel enhancers and resulting blends;

  (6)  "Blender", any person that produces blended motor fuel outside the bulk transfer/terminal system;

  (7)  "Blending", 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 or otherwise sold for use in the generation of power for the propulsion of a motor vehicle, an airplane, or a motorboat.  The term does not include the blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases;

  (8)  "Bulk plant", a bulk motor fuel storage and distribution facility that is not a terminal within the bulk transfer system and from which motor fuel may be removed by truck;

  (9)  "Bulk transfer", any transfer of motor fuel from one location to another by pipeline tender or marine delivery within the bulk transfer/terminal system;

  (10)  "Bulk transfer/terminal system", the motor fuel distribution system consisting of refineries, pipelines, vessels, and terminals.  Motor fuel in a refinery, pipeline, boat, barge or terminal is in the bulk transfer/terminal system.  Motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system;

  (11)  "Consumer", the user of the motor fuel;

  (12)  "Delivery", the placing of motor fuel or any liquid or propulsion energy into the battery, fuel tank, or storage device of a motor vehicle or bulk storage facility;

  (13)  "Department", the department of revenue;

  (14)  "Destination state", 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;

  (15)  "Diesel fuel", any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle.  A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle.  "Diesel fuel" does not include jet fuel sold to a buyer who is registered with the Internal Revenue Service to purchase jet fuel and remit taxes on its sale or use to the Internal Revenue Service.  "Diesel fuel" does not include biodiesel commonly referred to as B100 and defined in ASTM D6751, B99, or B99.9 until such biodiesel is blended with other diesel fuel or sold for highway use;

  (16)  "Diesel-powered highway vehicle", a motor vehicle operated on a highway that is propelled by a diesel-powered engine;

  (17)  "Director", the director of revenue;

  (18)  "Distributor", a person who either produces, refines, blends, compounds or manufactures motor fuel, imports motor fuel into a state or exports motor fuel out of a state, or who is engaged in distribution of motor fuel;

  (19)  "Dyed fuel", diesel fuel or kerosene that is required to be dyed pursuant to United States Environmental Protection Agency rules or is dyed pursuant to Internal Revenue Service rules or pursuant to any other requirements subsequently set by the United States Environmental Protection Agency or Internal Revenue Service including any invisible marker requirements;

  (20)  "Eligible purchaser", a distributor who has been authorized by the director to purchase motor fuel on a tax-deferred basis;

  (21)  "Export", to obtain motor fuel in this state for sale or other distribution outside of this state.  In applying this definition, motor fuel delivered out of state by or for the seller constitutes an export by the seller, and motor fuel delivered out of state by or for the purchaser constitutes an export by the purchaser;

  (22)  "Exporter", any person, other than a supplier, who purchases motor fuel in this state for the purpose of transporting or delivering the fuel outside of this state;

  (23)  "Farm tractor", all tractor-type, motorized farm implements and equipment but shall not include motor vehicles of the truck-type, pickup truck-type, automobiles, and other motor vehicles required to be registered and licensed each year pursuant to the provisions of the motor vehicle license and registration laws of this state;

  (24)  "Fuel grade alcohol", a methanol or ethanol with a proof of not less than one hundred ninety degrees (determined without regard to denaturants) and products derived from such alcohol for blending with motor fuel;

  (25)  "Fuel transportation vehicle", any vehicle designed for highway use which is also designed or used to transport motor fuels and includes transport trucks and tank wagons;

  (26)  "Gasoline", all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel.  Gasoline does not include products that have an American Society for Testing and Materials (ASTM) octane number of less than seventy-five as determined by the motor method;

  (27)  "Gross gallons", the total measured motor fuel, exclusive of any temperature or pressure adjustments, in U.S. gallons;

  (28)  "Heating oil", a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes;

  (29)  "Import", to bring motor fuel into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle.  In applying this definition, motor fuel delivered into this state from out-of-state by or for the seller constitutes an import by the seller, and motor fuel delivered into this state from out-of-state by or for the purchaser constitutes an import by the purchaser;

  (30)  "Import verification number", the number assigned by the director with respect to a single transport truck delivery into this state from another state upon request for an assigned number by an importer or the transporter carrying motor fuel into this state for the account of an importer;

  (31)  "Importer" includes any person who is the importer of record, pursuant to federal customs law, with respect to motor fuel.  If the importer of record is acting as an agent, the person for whom the agent is acting is the importer.  If there is no importer of record of motor fuel entered into this state, the owner of the motor fuel at the time it is brought into this state is the importer;

  (32)  "Interstate motor fuel user", any person who operates a motor fuel-powered motor vehicle with a licensed gross weight exceeding twenty-six thousand pounds that travels from this state into another state or from another state into this state;

  (33)  "Invoiced gallons", the gallons actually billed on an invoice for payment to a supplier which shall be either gross or net gallons on the original manifest or bill of lading;

  (34)  "K-1 kerosene", a petroleum product having an A.P.I. gravity of not less than forty degrees, at a temperature of sixty degrees Fahrenheit and a minimum flash point of one hundred degrees Fahrenheit with a sulfur content not exceeding four one-hundredths percent by weight;

  (35)  "Kerosene", the petroleum fraction containing hydrocarbons that are slightly heavier than those found in gasoline and naphtha, with a boiling range of one hundred forty-nine to three hundred degrees Celsius;

  (36)  "Liquid", any substance that is liquid in excess of sixty degrees Fahrenheit and at a pressure of fourteen and seven-tenths pounds per square inch absolute;

  (37)  "Motor fuel", gasoline, diesel fuel, kerosene and blended fuel;

  (38)  "Motor vehicle", any automobile, truck, truck-tractor or any motor bus or self-propelled vehicle not exclusively operated or driven upon fixed rails or tracks.  The term does not include:

  (a)  Farm tractors or machinery including tractors and machinery designed for off-road use but capable of movement on roads at low speeds, or

  (b)  A vehicle solely operated on rails;

  (39)  "Net gallons", the motor fuel, measured in U.S. gallons, when corrected to a temperature of sixty degrees Fahrenheit and a pressure of fourteen and seven-tenths pounds per square inch absolute (psi);

  (40)  "Permissive supplier", an out-of-state supplier that elects, but is not required, to have a supplier's license pursuant to this chapter;

  (41)  "Person", natural persons, individuals, partnerships, firms, associations, corporations, estates, trustees, business trusts, syndicates, this state, any county, city, municipality, school district or other political subdivision of the state, federally recognized Indian tribe, or any corporation or combination acting as a unit or any receiver appointed by any state or federal court;

  (42)  "Position holder", 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 terminating services for motor fuel at the terminal.  The term includes a terminal operator who owns motor fuel in the terminal;

  (43)  "Propel", the operation of a motor vehicle, whether it is in motion or at rest;

  (44)  "Public highway", every road, toll road, highway, street, way or place generally open to the use of the public as a matter of right for the purposes of vehicular travel, including streets and alleys of any town or city notwithstanding that the same may be temporarily closed for construction, reconstruction, maintenance or repair;

  (45)  "Qualified terminal", a terminal which has been assigned a terminal control number ("tcn") by the Internal Revenue Service;

  (46)  "Rack", a mechanism for delivering motor fuel from a refinery or terminal into a railroad tank car, a transport truck or other means of bulk transfer outside of the bulk transfer/terminal system;

  (47)  "Refiner", any person that owns, operates, or otherwise controls a refinery;

  (48)  "Refinery", a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons and from which motor fuel may be removed by pipeline, by boat or barge, or at a rack;

  (49)  "Removal", any physical transfer of motor fuel from a terminal, manufacturing plant, customs custody, pipeline, boat or barge, refinery or any facility that stores motor fuel;

  (50)  "Retailer", a person that engages in the business of selling or dispensing to the consumer within this state;

  (51)  "Supplier", a person that is:

  (a)  Registered or required to be registered pursuant to 26 U.S.C., Section 4101, for transactions in motor fuels in the bulk transfer/terminal distribution system; and

  (b)  One or more of the following:

  a.  The position holder in a terminal or refinery in this state;

  b.  Imports motor fuel into this state from a foreign country;

  c.  Acquires motor fuel from a terminal or refinery in this state from a position holder pursuant to either a two-party exchange or a qualified buy-sell arrangement which is treated as an exchange and appears on the records of the terminal operator; or

  d.  The position holder in a terminal or refinery outside this state with respect to motor fuel which that person imports into this state.  A terminal operator shall not be considered a supplier based solely on the fact that the terminal operator handles motor fuel consigned to it within a terminal.

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"Supplier" also means a person that produces fuel grade alcohol or alcohol-derivative substances in this state, produces fuel grade alcohol or alcohol-derivative substances for import to this state into a terminal, or acquires upon import by truck, rail car or barge into a terminal, fuel grade alcohol or alcohol-derivative substances.  "Supplier" includes a permissive supplier unless specifically provided otherwise;

  (52)  "Tank wagon", a straight truck having multiple compartments designed or used to carry motor fuel;

  (53)  "Terminal", a bulk storage and distribution facility which includes:

  (a)  For the purposes of motor fuel, is a qualified terminal;

  (b)  For the purposes of fuel grade alcohol, is supplied by truck, rail car, boat, barge or pipeline and the products are removed at a rack;

  (54)  "Terminal bulk transfers" include but are not limited to the following:

  (a)  Boat or barge movement of motor fuel from a refinery or terminal to a terminal;

  (b)  Pipeline movements of motor fuel from a refinery or terminal to a terminal;

  (c)  Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; and

  (d)  Two-party exchanges or buy-sell supply arrangements within a terminal between licensed suppliers;

  (55)  "Terminal operator", any person that owns, operates, or otherwise controls a terminal.  A terminal operator may own the motor fuel that is transferred through or stored in the terminal;

  (56)  "Transmix", the buffer or interface between two different products in a pipeline shipment, or a mix of two different products within a refinery or terminal that results in an off-grade mixture;

  (57)  "Transport truck", a semitrailer combination rig designed or used to transport motor fuel over the highways;

  (58)  "Transporter", any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting motor fuels;

  (59)  "Two-party exchange", a transaction in which the motor fuel is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier and:

  (a)  Which transaction includes a transfer from the person that holds the original inventory position for motor fuel in the terminal as reflected on the records of the terminal operator; and

  (b)  The exchange transaction is simultaneous with removal from the terminal by the receiving exchange partner.  However, in any event, the terminal operator in its books and records treats the receiving exchange party as the supplier which removes the product across a terminal rack for purposes of reporting such events to this state;

  (60)  "Ultimate vendor", a person that sells motor fuel to the consumer;

  (61)  "Undyed diesel fuel", diesel fuel that is not subject to the United States Environmental Protection Agency dyeing requirements, or has not been dyed in accordance with Internal Revenue Service fuel dyeing provisions; and

  (62)  "Vehicle fuel tank", any receptacle on a motor vehicle from which fuel is supplied for the propulsion of the motor vehicle.

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(L. 1998 S.B. 619, A.L. 2009 H.B. 683, A.L. 2010 H.B. 1965, A.L. 2017 S.B. 8)