The bill restructures the excise tax on gasoline and special fuel
(fuels) by:
•
Imposing the tax when it is imported into the state or removed from any terminal in the state, in addition to the existing points of taxation;
•
Eliminating the 3 tax deferred transactions;
•
Exempting the tax from the import or removal of fuels by bulk transfer to or from 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;
•
If the purchaser is not a licensee or exempt from taxation, requiring the terminal operator to collect the tax, which the terminal operator holds in trust for the state, and establishing that the terminal operator is liable and responsible for the tax;
•
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.
