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.)