Source: http://lawfilesext.leg.wa.gov/law/wsr/2009/01/09-01-076.htm
Timestamp: 2020-03-28 22:07:44
Document Index: 531096885

Matched Legal Cases: ['§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308', '§ 308']

WSR 09-01-076
(Prorate Fuel Tax Administration)[ Filed December 15, 2008, 11:18 a.m. ]
Preproposal statement of inquiry was filed as WSR 08-13-085.
Title of Rule and Other Identifying Information: Chapter 308-77 WAC, Special fuel tax.
Hearing Location(s): Department of Licensing, Prorate and Fuel Tax, 2424 Bristol Court, Room 346, Olympia, WA 98507, on January 28, 2009, at 1:30 p.m.
Date of Intended Adoption: February 24, 2009.
Submit Written Comments to: Art Farley, P.O. Box 9036, Olympia, WA 98507-9036, e-mail DOLPRFTRuleComments@dol.wa.gov, fax (360) 664-8468, by January 28, 2009.
Assistance for Persons with Disabilities: Contact K. Partain by January 14, 2009, TTY (360) 664-8885 or (360) 664-1816.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Changes to this rule are in accordance with Executive Order 97-02 Regulatory Improvement and the 05-03 on plain talk. The rule has been changed so it is easier to understand as well as removed any redundancy or obsolete language.
Reasons Supporting Proposal: Executive Order 05-03, Executive Order 97-02.
Statutory Authority for Adoption: RCW 82.36.435.
Statute Being Implemented: Chapter 82.36, 82.38, or 82.48 RCW.
Name of Proponent: Department of licensing, vehicle services division, prorate and fuel tax administration, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Paul Johnson, FT Manager, 2424 Bristol Court, Olympia, (360) 664-1844.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Members of the impacted industries and department of licensing staff reviewed the proposed amendments and comments did not relate to an economic impact.
A cost-benefit analysis is not required under RCW 34.05.328. Members of the impacted industries and department of licensing staff reviewed the proposed amendments and comments did not relate to an economic impact.
Karla Laughlin
OTS-2059.1
AMENDATORY SECTION(Amending WSR 01-22-073, filed 11/1/01, effective 12/2/01)
WAC 308-77-005 Definitions. (1) "Special fuel" as defined in RCW 82.38.020(23) includes diesel fuel, propane, natural gas, kerosene, biodiesel, and any other combustible liquid or gas by whatever name the liquid or gas may be known or sold for the generation of power to propel a motor vehicle on the highways except fuel that is subject to the tax imposed by chapter 82.36 RCW.
(2) "Biodiesel" a nonpetroleum-based diesel fuel consisting of short chain alkyl (methyl or ethyl) esters, made by transesterification of vegetable oil or animal fat (tallow), which can be used alone, or blended with conventional petro-diesel in unmodified diesel-engine vehicles.
(3) "Publicly owned fire fighting equipment" means equipment owned and used ((exclusively)) for fire fighting by any agency or political subdivision of the state of Washington and will include fire engines, aid cars, ambulances, and vehicles used to transport fire fighting personnel.
(((3) "Farmer" means any person engaged in the cultivation and tillage of the soil, dairying, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities (except forestry or forestry operations), the raising of livestock, bees, fur-bearing animals, or poultry, and any practices performed on a farm as an incident to or in conjunction with such farming operations.
(4) "Logging company" means any person engaged in the business of cutting timber.
(5) "Construction company" means any person, firm, partnership or corporation who or which is engaged in the business of a contractor.
(6) "Contractor" means any person in the pursuit of an independent business that undertakes to, or offers to undertake, or submits a bid to, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish, for another, any building, highway, road, railroad, excavation or other structure, project, development, improvement attached to real estate, including the installation of carpeting and/or floor covering, the erection of scaffolding, roofing and siding.
(7))) (4) "Export" means to obtain special fuel in this state for sale or distribution outside this state. To be considered an "export" and qualify for exemption from the special fuel tax, special fuel obtained outside the bulk transfer terminal system must be physically off-loaded in the destination state, province, or foreign country ((and)). The exporter must be licensed or registered, if required, in the state, province, or country of destination.
(((8) "Special fuel supplier" means a person who is licensed as a supplier under chapter 82.38 RCW and must hold a federal certificate of registry issued under the Internal Revenue Code authorizing the person to enter into federal tax free transactions on special fuel in the bulk transfer-terminal system.
(9))) (5) "Invoice" means any document, paper or electronic, evidencing the transfer of ownership of special fuel.
(6) "Net gallons" a standard gallon unit of petroleum of 231 cubic inches at 60 degrees Fahrenheit (U.S. petroleum gallon).
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-005, filed 11/1/01, effective 12/2/01.]
WAC 308-77-015 Incidental use((/)) or exemptions. (1) When is ((fuel used during)) the incidental operation of a nonlicensed vehicle exempt the special fuel tax? Fuel is exempt the special fuel tax if the vehicle is not licensed or required to be licensed under chapter 46.16 or 46.87 RCW and is operated between two pieces of private property for a distance not exceeding fifteen miles. The movement of the vehicle must be incidental to the primary use of the vehicle.
(2) ((Are there any circumstances in which)) When is off highway fuel use ((is considered)) taxable? If fuel is used in ((the operation of a motor vehicle in)) a continuous trip, which is partly on and partly off the highway, the tax applies to all the fuel used ((including the fuel used in the operation off the highway)) when the total distance traveled off the highway does not exceed one mile.
A continuous trip ((means a vehicular movement involving)) involves the use of a highway for the transportation of persons or property from one place to another; or, in ((the instance of)) a round trip, from the ((point of)) origin ((of the movement)) to the ((point of)) destination and return to the ((point of)) origin.
(3) Are cash sales to qualified foreign ((diplomatic)) diplomats and consular missions tax exempt? ((Tax exempt sales of special fuel may be made to qualified foreign diplomatic, consular missions and their qualified personnel if the diplomatic, consular missions, and qualified personnel maintain tax-exempt credit card accounts. Special fuel purchased by cash is not tax exempt.
(4) What is required for a licensee to issue a credit card to qualified foreign government personnel? Application must be accompanied by Form DSP-99A, issued by the Office of Foreign Missions, United States Department of State, and approved by that office.)) No, only credit card purchases are exempt.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-015, filed 11/1/01, effective 12/2/01.]
WAC 308-77-025 ((Issuance of license.)) Special fuel permits. (((1) If I have separate businesses at different locations or more than one fleet of vehicles, can I obtain more than one license? Yes. Fuel tax licensees who conduct business at separate locations or operate more than one fleet of vehicles may request a license for each separate business location and/or fleet.
(2))) When is a special fuel ((tax trip)) permit required? If you are not an International Fuel Tax Agreement (IFTA) licensee, you must purchase a special fuel ((tax)) permit ((must be purchased)) when entering this state if the commercial vehicle being operated has:
(((a))) (1) Two axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds; or
(((b))) (2) Three or more axles regardless of weight; or
(((c))) (3) Is a combination of vehicles, when the combined gross vehicle weight or registered gross vehicle weight exceeds twenty-six thousand pounds.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-025, filed 11/1/01, effective 12/2/01.]
WAC 308-77-035 Cancellation, suspension, or revocation of special fuel license((())s(())). (((1) Under what circumstances will my special fuel license be canceled? A license may be canceled by the department under the following circumstances:
(a) Upon written request of the licensee. The cancellation will become effective within sixty days from receipt of the written request.
(b) Upon investigation and sixty days' notice to the licensee if the department determines the licensee is no longer engaged in the sale or distribution of special fuel for a period of six consecutive months prior to the cancellation.
(c) Upon failure to file a new or additional surety bond or to make deposits in accordance with RCW 82.38.130, or when the surety bond issuer requests to be released or discharged.
(d) Upon failure to file a new or additional surety bond or to deposit additional securities within thirty days after being requested to do so by the department.
(2) How do I request to have my license canceled? A written request for cancellation and any required tax returns up to the date of cancellation must be forwarded to the department with a remittance of any tax, penalty and interest due.
(3) Under what circumstances may my license be suspended or revoked? A license suspension or revocation is initiated by the department for cause as defined in chapter 82.38 RCW.
(4))) What happens when my license is canceled, suspended, or revoked? The department will notify all special fuel ((suppliers, importers, exporters, blenders and distributors)) licensees, except for IFTA, of the change in license status.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-035, filed 11/1/01, effective 12/2/01.]
AMENDATORY SECTION(Amending WSR 02-02-010, filed 12/20/01, effective 1/20/02)
WAC 308-77-04401 Waiving of bond requirements. (1) Can the department waive the requirement to maintain a fuel tax bond? Yes((.)), if the department ((may waive the bonding requirement of a licensed distributor if, upon determination by the department,)) determines that the licensed distributor has sufficient financial ((instruments)) assets to ((extinguish)) cover any Washington state fuel tax liability, including penalties and interest((, incurred while acting as a licensed distributor)).
(2) What is considered a financial ((instrument)) asset? ((For purposes of this rule, a financial instrument is either:))
(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability ((incurred by the distributor.)); or
(b) ((Lawful money of the)) United States dollars, ((or)) bonds, or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.
(3) How can I qualify to have my bonding requirement waived? ((You may qualify to have your bonding requirement waived upon:))
(a) By filing a notarized statement with the department stating that your line((())s(())) of credit with your financial institution((())s(())) and your fuel supplier((())s(())) is at a sufficient amount to include product cost and state fuel taxes. You must ((indicate)) list the name of the financial institution((())s(())), the account number((())s(())) and dollar value of your line((())s(())) of credit, and the name((())s(())) of your fuel supplier((())s(())). You must authorize the department to access this information with your financial institution((())s(())) and supplier((())s(() for verification purposes)); or
(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department((,)) as security for performance under chapter 82.38 RCW; and
(c) Providing the department with ((documentation,)) satisfactory ((to the department,)) documentation indicating that the supplier((())s(())) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line((())s(())) of credit((, if applicable)).
(5) What if I no longer maintain a line of credit or financial ((instrument)) asset? You must provide a surety bond to the department in the amount required by chapter 82.38 RCW, with a coverage ((commencement date)) beginning on or before the date the line of credit or financial ((instrument was extinguished)) asset became insufficient.
[Statutory Authority: RCW 82.36.435 and 82.38.260. 02-02-010, § 308-77-04401, filed 12/20/01, effective 1/20/02.]
WAC 308-77-075 Payment due dates for special fuel taxes not paid by electronic funds. (((1))) What if ((the)) my payment due date falls on a Saturday, Sunday, or state legal holiday ((and payment is by electronic funds transfer))? ((If you are paying your special fuel tax by electronic funds transfer, you must transfer the funds by the state business day immediately preceding the due date. ()) Payment is due on the next state business day. For example, if the payment due date falls on Saturday, ((you must transfer the funds by Friday.)
(2) What if my payment is not made by electronic funds transfer? If you are not paying your special fuel tax by electronic funds transfer, then payment is due on the next state business day. (For example, if the payment due date falls on Saturday, you must submit payment by Monday.))) the payment must be postmarked by Monday.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-075, filed 11/1/01, effective 12/2/01.]
WAC 308-77-085 Minimum ((tax)) payment((/)) or refund. (1) What is the minimum ((tax)) payment or refund for licensed accounts? ((Each tax return that declares a tax liability of ten dollars or less need not make remittance; conversely, a refund of ten dollars or less will not be issued. A computation error on the tax return which results in an additional tax liability in the amount of ten dollars or less will be accepted without further collection action.)) Ten dollars or less will not be owed or refunded.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-085, filed 11/1/01, effective 12/2/01.]
WAC 308-77-099 Invoices issued by licensees. (1) When is an invoice issued? Every licensee ((shall)) must issue an invoice at the time of sale. If an electronic invoice is issued, a paper copy of the invoice ((or other documentation containing)) is required ((information must be produced if required by the department or)) to support a refund claim.
(2) What information ((must appear on each)) is required on an invoice? ((Each invoice must include the following information:))
(b) The name, address, and special fuel tax license number, if applicable, of the purchaser;
(c) The date of delivery ((())month, day, and year(()));
(d) The location of the point of shipment. Alphanumeric codes are allowed if the definition((s of the alphanumeric codes)) keys are provided to the department;
(e) The physical address of the fuel delivery or exchange, if different than the purchaser address, including the name of the state, Canadian Province, or foreign country. Alphanumeric codes are allowed if the definition((s of the alphanumeric codes)) keys are provided to the department;
(f) In the case of a delivery ((onto)) into a federally recognized Indian reservation or onto Indian country, the invoice must identify the state ((within the contiguous United States, Hawaii, Alaska, District of Columbia)), U.S. possession, or Canadian Province in which the delivery took place;
(i) The number of U.S. gallons of product sold (((must indicate)) in net or gross gallons(()));
(k) A statement on the invoice indicating ((whether)) if the fuel has been sold without the Washington state fuel tax.
(3) What happens if a purchaser's invoice is lost or destroyed? ((If an invoice is lost or destroyed,)) The seller ((shall)) can issue a duplicate or copy containing all information ((that appeared)) on the original invoice, if requested by the purchaser. The copies ((shall)) must be plainly marked "copy" or "duplicate."
(((5) What documentation does a licensed supplier, importer or blender need in order to support taxable special fuel consumed for their own use? Fuel used in motor vehicles or for other taxable purposes by a licensed supplier, importer or blender shall be supported by records covering the total fuel used during the reporting period.
(6) What documentation does a distributor need in order to claim a refund for nontaxable use of special fuel? If special fuel is used for a purpose subject to tax refund, the distributor must have supporting invoices or records indicating the use of the special fuel and the type(s) of equipment it is used in.))
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-099, filed 11/1/01, effective 12/2/01.]
WAC 308-77-103 Mitigation of penalties and interest. (1) ((Under)) What ((circumstances may a)) fee, penalty ((and/))or interest may be mitigated or reduced? The department((, in its discretion,)) may mitigate((, extinguish, and/or adjust)) fees, penalties, dyed special fuel penalties, ((and/))or interest ((arising from late or missing fuel tax returns, unpaid or underpaid taxes, lack of complete records to support reported fuel usage, license revocation penalties, assessments, lack of complete records, and/or the unlawful use of dyed special fuel)) from:
• Late or missing fuel tax returns;
• Unpaid or underpaid taxes;
• Incomplete records to support reported fuel usage;
• License reinstatement fees;
• Assessments; or
• Unlawful use of dyed special fuel.
(2) How will the department ((determine whether fees, penalties and/or interest should be mitigated)) make the decision? The department may review records, account history, or other information ((in arriving at its decision to mitigate)).
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-103, filed 11/1/01, effective 12/2/01.]
WAC 308-77-104 Filing of refund claims for nonlicensees. (1) How do I apply for a refund? ((Any person claiming a refund of the special fuel tax must make application to the department and be issued a refund permit number.)) Contact the department for a refund permit application and instructions.
(2) ((When)) What time period can I file for a refund claim? ((A refund claim may be filed at any time not to exceed a thirteen-month time limit from the date of purchase. If you claim a refund for fuel purchased in any month of a claimed period, you may not claim additional purchases for that month on another claim. The department will use the postmark date to determine the eligibility of the claim.)) You must file within thirteen months of the fuel purchase date. The department will use the postmark date to determine the thirteen-month time frame. We will not accept multiple refund claims for the same month. For example, if you have made a claim for purchases in June you cannot claim additional purchases for June on another claim form.
(3) What do I need to send ((in my invoices)) with ((the)) my refund claim ((request))? ((If your refund claim request is one hundred dollars or less, you do not have to send your purchase invoices with your refund claim unless required by the department. If your refund claim request is more than one hundred dollars, purchase invoices are required. If electronic invoices were issued to the claimant, paper copies of the invoices or other documentation containing required information must be submitted with the refund claim.)) You must send in your fuel purchase invoices, schedules, and other documents listed on the refund claim form. If electronic invoices were issued, you must provide paper copies.
(4) How ((shall)) do I account for my inventory ((on my refund claim form))? Any fuel on hand ((())by physical measurement(())) at the end of the claim period, should be ((indicated on the claim)) reported as ending inventory ((and should be reported as a beginning inventory on the next refund claim form. Credit for the inventory will be allowed on the next claim if it is filed within thirteen months from the filing date of the claim that established the inventory. All invoices for the total fuel purchased must be submitted with each claim unless the amount of the claim is one hundred dollars or less)). This figure should be reported as the beginning inventory on your next claim form.
(5) ((As)) What does a licensed distributor ((do I need to)) send ((in supporting summary schedules and invoices with my)) with their refund claim ((request))? ((Yes.)) Summary schedules must be provided ((by the distributor. Invoices may be requested by the)) and the department may request invoices.
(6) ((Who may)) The following can sign a refund claim form((? The following persons may sign a refund claim form)):
(7) Can invoices ((be in)) have a different name than what is on the claim form? No((, invoices made out in other names will not be accepted)).
(8) Can I request that my refund be assigned to another person? Yes, if we receive a letter ((of assignment is attached, signed by the person to whom the invoice was issued, designating the payee)) stating whom you would like the claim assigned to.
(9) How long will it take until I receive my refund? ((Properly completed refund claims will be processed and mailed)) Within thirty business days ((of date of receipt)) after we receive a properly completed claim.
(10) How long do I maintain my refund records? Keep them for five years after submitting your claim.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-104, filed 11/1/01, effective 12/2/01.]
WAC 308-77-106 Use tax for refunds. (1) Is use tax deducted from my refund claim? Yes, ((the use tax may be deducted from your fuel tax refund amount as imposed by)) unless you are exempt from the use tax in chapter 82.12 RCW.
(2) How is use tax computed? ((The claimant may)) You can choose to:
• Calculate the use tax amount using the actual use tax rate((())s(())) and actual cost per gallon; or
• Have the department ((will)) calculate the use tax amount using an average use tax rate and ((average)) price per gallon.
Either method chosen ((by the claimant)) must be used for each refund claim submitted during ((a)) the calendar year, unless there has been a change in the department's estimated average fuel cost during that period. ((If computed by the department, the department will use an estimate of the statewide average fuel cost and an estimated use tax rate. The statewide average cost and use tax rate will be reviewed every six months and adjusted as necessary. If there is any dispute over the method of calculation, the taxpayer will be required to use actual cost of the fuel and use tax rate(s).))
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-106, filed 11/1/01, effective 12/2/01.]
WAC 308-77-109 Invoice requirements for refund to nonlicensees and IFTA licensees. (1) What ((are the)) is a valid invoice ((requirements))? ((The seller of special fuel is required to issue to each purchaser separate invoices for each purchase of fuel. However,)) A separate invoice must be issued for each fuel purchase. A single invoice ((covering)) may list multiple deliveries of fuel purchases made during a ((period of time not to exceed one)) calendar month ((may constitute a separate invoice as required by this subsection. Provided, That each delivery is individually listed on the invoice or on an accompanying statement in accordance with the requirements of this subsection for single deliveries)).
(2) ((What)) The following information must be included on the invoice((? Each invoice must contain the following information)):
(a) Name and address of the seller;
(b) ((Kind or)) The type of fuel and number of gallons purchased;
(c) Complete date of sale ((())including month, day, and year(()));
(d) Price per gallon; and
(e) Total amount of sale.
(3) ((Will)) The department will not accept invoices with altered, corrected, or erased information((? Invoices which indicate alterations, corrections or erasures shall be voided and will not be accepted. Any person who alters any part of an invoice that will tend to give the claimant an illegal gain may have the entire claim invalidated and the director may suspend any further claims for refund for a period of one year. If an electronic invoice was issued, then a paper copy of the electronic invoice or other documentation containing required information must be submitted)).
(4) What happens if ((an invoice is lost or destroyed)) the seller issues an electronic invoice? ((If an invoice is lost or destroyed, the seller may issue a duplicate or copy containing the invoice number, date of sale, gallonage, price and amount, and any information that appeared on the first invoice. The copies shall be plainly marked "copy" or "duplicate.")) A paper copy must be submitted with your refund claim.
(5) What happens if I ((issued)) get an incorrect invoice ((to the purchaser))? The seller((s of fuel must issue a corrected invoice to the purchaser. The invoice must clearly indicate that it is a corrected invoice and reference the original invoice. Only one invoice shall be issued for any one delivery)) must issue a new invoice marked "correction" and reference the original.
(6) What happens if I lose or destroy my invoice? The seller may issue a copy. The copies must be plainly marked "copy" or "duplicate."
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-109, filed 11/1/01, effective 12/2/01.]
WAC 308-77-112 Power take-off (PTO) use. (1) What is ((power take-off)) PTO use? It is fuel used in a motor vehicle engine to operate auxiliary equipment ((provided that)). The fuel ((used is)) must be supplied from the propulsion tank of the motor vehicle.
(2) What is not considered auxiliary equipment? Equipment ((that is considered an integral part of the operation of the vehicle,)) such as air conditioning, power steering, generator, etc., that is considered an integral part of the operation of the vehicle.
(3) What formula does the department use in determining ((power take-off)) PTO usage? ((For special fuel used in operating a power take-off unit on any of the vehicles listed herein when direct measurement is not feasible,)) The tax exemption is calculated ((at the rate specified)) as a percentage of the total Washington taxable fuel ((used by the vehicles)):
Cement mixer 25%
Fire trucks (private) 25%
Mobile cranes 25%
Garbage trucks (with load compactor) 25%
Sewer cleaning truck/jet vactor 25%
Super suckers 25%
Line truck with digger/derrick or aerial lift 20%
Log truck with self loader 20%
Refrigeration trucks 20%
Sweeper trucks (must be motor vehicle) 20%
Boom truck/block boom 15%
Bulk feed truck 15%
Dump trailers 15%
Dump trucks 15%
Hot asphalt distribution truck 15%
Leaf truck 15%
Lime spreader 15%
Pneumatic tank truck 15%
Salt spreader on dump truck 15%
Seeder truck 15%
Semiwrecker 15%
Service truck with jack hammer/drill 15%
Snow plow 15%
Spray truck 15%
Tank transport 15%
Tank trucks 15%
Truck with PTO hydraulic winch 15%
Wrecker 15%
Car carrier with hydraulic winch 10%
Carpet cleaning van 10%
(4) What if my fuel consumption is greater than the percentages indicated above? If ((a claimant)) you can provide satisfactory documentation and records to show that the fuel consumed by the ((power take-off)) PTO is greater than the percentages indicated, the department may grant the higher percentage on a case-by-case basis.
(5) What documents must accompany the refund claims? All claims must be accompanied by valid purchase invoices to cover the total gallons of special fuel purchased, except that invoices for special fuel used in fuel oil delivery trucks or when measured by a metering device need only be equal to or greater than the gallons claimed as refundable. A support schedule for Washington ((power take-off)) PTO and power pumping credits ((shall)) must accompany each claim for refund.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-112, filed 11/1/01, effective 12/2/01.]
WAC 308-77-114 Unauthorized use of dyed diesel. (1) Is there any dye concentration in diesel fuel ((for which)) that the department cannot assess penalties for unlawful use? No. The department may assess on any ((dyed diesel fuel)) dye concentration found in licensed vehicles, vehicles required to be licensed, or in bulk storage tanks used to fuel licensed or required to be licensed vehicles.
(2) Who ((may the department assess)) can be assessed a penalty for unlawful use of dyed diesel? ((The department may assess:))
(a) The operator of the vehicle; ((and/or))
(b) The registered owner((())s(())) of the vehicle; ((and/or))
(c) Any ((other)) person ((or entity)) responsible for the operation, maintenance, or fueling of the vehicle.
(3) If dyed diesel is discovered in the fuel supply tank((())s(())) of a vehicle((s)), when must the fuel be removed ((from the involved vehicle(s)))? ((The)) Dyed diesel fuel must be removed from the vehicle((())s(())) within twenty-four hours from the time of discovery. ((Additional violations on)) Detection of dyed diesel in the same vehicle((())s(() detected)) after the twenty-four-hour period will be considered as a separate violation((s)).
(4) ((May the department assess)) Will I be assessed dyed diesel penalties on the fuel in bulk storage tank((())s(()))? Yes, if ((the department determines that)) any dyed diesel fuel from the bulk storage tank((())s(())) has been used for unlawful purposes ((in any vehicle(s). Fuel remaining in the bulk storage fuel tank(s) will be considered for on highway use)).
(5) How is the dyed diesel fuel in a bulk storage tank(((s))) assessed? ((Once dyed diesel fuel from bulk storage has been used for unlawful purposes, an)) The assessment ((will be)) is based on the capacity or estimated quantity of dyed diesel fuel in the bulk storage tank((())s(())) without regard to how this fuel will be used.
(6) What if I refuse the department or authorized representative ((is denied)) access to inspect the ((fuel in diesel)) vehicle((())s(())) or bulk storage tank((())s(()))? The penalty in RCW 82.38.170(13) will be ((applied to)) calculated on the capacity of the bulk storage tank((())s(())) and((/or to)) the number of vehicles subject to the refusal. ((All licenses issued under this chapter may be subject to cancellation and/or revocation under RCW 82.38.120(9) and 82.38.130.))
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-114, filed 11/1/01, effective 12/2/01.]
WAC 308-77-116 Records. (1) What special fuel records must be kept? (((1))) Every person licensed or required to be licensed ((shall)) must maintain a complete monthly stock summary of the gallons of special fuel reflecting inventories, receipts, sales, use, other distribution, and loss or gain. The stock summary ((shall)) must be supported by:
(c) A record of fuel receipts ((together with)), invoices, bills of lading, transfer documents, yield reports, and other documents relative to the acquisition of fuel.
(d) A record of fuel disbursements ((together with)), invoices, bills of lading and other documents relative to the disbursement of fuel.
(2) ((What records must a licensed dyed special fuel user keep? The recordkeeping requirements of this section also apply to dyed special fuel:
(a) Purchased and used by licensed dyed special fuel users; and
(b) Authorized for use on the highway.)) If I am a licensed dyed fuel user or someone who is required to be licensed, do I keep the same records? Yes.
[Statutory Authority: RCW 82.38.260. 01-22-073, § 308-77-116, filed 11/1/01, effective 12/2/01.]
AMENDATORY SECTION(Amending WSR 00-16-045, filed 7/26/00, effective 8/26/00)
WAC 308-77-155 On board computers or recording devices. Can I use on board computers or recording devices to record mileage? Yes, ((the use of on board computers or recording devices for the production of mileage records required by RCW 82.32.140 shall be governed by the requirements or procedures adopted by the International Fuel Tax Agreement (IFTA))) with prior approval by the department.
[Statutory Authority: Chapters 46.87 and 82.38 RCW. 00-16-045, § 308-77-155, filed 7/26/00, effective 8/26/00. Statutory Authority: RCW 82.37.170. 94-11-029, § 308-77-155, filed 5/9/94, effective 6/9/94.]
WAC 308-77-240 Refund records ((for refund claims)). (((1))) What records ((does the department require each claimant to retain? Each claimant must retain records that reflect)) do I need to keep to claim a refund of fuel taxes?
• All special fuel receipts((,));
• The gallons of fuel used in each ((type)) piece of equipment ((()), both refundable and nonrefundable((), other uses, loss and gain, and inventory on hand. The records must indicate the date of receipt or disbursements and identify the equipment into which the fuel is delivered or the purpose for which the fuel is used.));
• Fuel inventory in bulk storage;
• Detailed fuel records for all withdrawals from bulk storage;
• Fuel purchased in small containers (ten gallons or less) for nonhighway use must show the type of equipment being used, i.e., boats, tractors, power saws, etc.
Each claimant must also keep on highway and off highway mileage records for each licensed vehicle.
((If the claimant maintains electronic invoices, paper copies of these invoices must be produced, upon request of the department. Failure of the claimant to maintain the required records or to comply with the department's request for examination of the records will waive all rights to a refund.
(2) What additional records must be maintained to support a refund claim for fuel withdrawn from bulk storage? Fuel purchased and delivered into bulk storage must have detailed withdrawal records that account for taxable and nontaxable use.))
[Statutory Authority: Chapters 46.87 and 82.38 RCW. 00-16-045, § 308-77-240, filed 7/26/00, effective 8/26/00. Statutory Authority: RCW 82.38.260. 79-08-140 (Order 548 DOL), § 308-77-240, filed 8/1/79; Order 114 MV, § 308-77-240, filed 11/26/71.]
WAC 308-77-265 Tax exempt losses. (1) ((What is considered a tax-exempt loss? Special fuel lost or destroyed in this state while being transported in the equipment of a licensee or in the equipment of a common or contract carrier for a licensee will be considered as a taxable distribution. Credit for or a refund of the special fuel tax paid may be taken when the licensee or the common or contract carrier furnishes acceptable proof of the exact quantity of fuel lost provided the documents in support of the loss are submitted to the department for approval as provided in RCW 82.38.180.
(2))) What is acceptable proof of loss for a credit or refund of fuel tax paid? ((Acceptable proof of loss will consist of the following:))
(a) ((An affidavit)) A notarized affidavit by a person having ((direct)) actual knowledge of the circumstances of the loss((,)) explaining the origin and destination of the shipment, the circumstances surrounding the ((loss,)) quantity of fuel lost, fuel salvaged, disposition of the salvaged fuel, and procedure((())s(())) used in the determination of the quantity of fuel lost; or
(b) A signed statement by a federal ((or jurisdictional)), state, local or provincial official who has authority to investigate ((and/or deal with)) fuel ((losses or a witness to the)) loss; and
(c) A bill of lading or other shipping document((())s(())); and
(((3))) (2) Are deductions for losses from bulk storage allowed? Yes, special fuel that has been proven lost or destroyed, prior to distribution from a licensee's bulk storage ((plant, is allowed as a deduction)) facility outside of the bulk transfer terminal system may be considered a tax exempt loss.
(((4))) (3) How long ((shall)) do I retain my evidence substantiating my loss? ((Documentary evidence substantiating losses shall be retained by the licensee for)) Five years from date of claim.
(((5))) (4) May I claim a deduction for ((unproven losses)) stolen fuel? No((, unproven losses will be considered as a distribution and subject to the fuel tax.
(6) Am I liable for fuel taxes if one of my employees or agents cause a loss of fuel? Yes, charges for losses made by employees or agents of the licensee who fail to satisfactorily account for fuel shall be invoiced inclusive of the fuel tax. Other losses shall be substantiated by proof acceptable to the department)).
[Statutory Authority: Chapters 46.87 and 82.38 RCW. 00-16-045, § 308-77-265, filed 7/26/00, effective 8/26/00. Statutory Authority: RCW 82.38.260. 79-08-140 (Order 548 DOL), § 308-77-265, filed 8/1/79; Order MV-137, § 308-77-265, filed 6/1/72.]
WAC 308-77-280 Natural gas, propane(( -- ))decal as evidence of payment of annual license fees. (1) Do I pay fuel tax when I purchase natural gas or liquefied petroleum gas (propane) for my licensed vehicle? No, once you have licensed your vehicle as being powered by natural gas or propane, you will pay an annual license fee in lieu of the fuel tax.
(2) What proof is required to purchase natural gas or propane for my vehicle? A decal will be issued that must be displayed on your vehicle that allows the purchase of natural gas or propane. This decal must be displayed in ((a conspicuous place)) plain view on the vehicle near the fuel supply tank.
(3) What if my vehicle operates with both motor fuel gasoline and natural gas or propane? You will pay fuel tax on the gasoline as well as purchasing a decal.
[Statutory Authority: Chapters 46.87 and 82.38 RCW. 00-16-045, § 308-77-280, filed 7/26/00, effective 8/26/00. Statutory Authority: RCW 82.38.260. 81-14-048 (Order DOL 630), § 308-77-280, filed 6/30/81.]
WAC 308-77-290 Dishonored checks. (1) What will happen if my check ((becomes)) is dishonored? ((A dishonored check represents failure to pay special fuel taxes, fees and/or penalties and interest when due, and the department will enforce such special fuel licensing and taxing laws as are necessary to recover the unpaid taxes and fees when they become due and payable.
(2) What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, official check, or money order.
(3))) The department will take collection action to recover any amounts owing and require all subsequent payments to be made in guaranteed funds, such as cash, cashier's check, or money order.
(2) Are there any additional fees charged for a dishonored check (((DHC)))? Yes, a handling fee ((shall be assessed)) will be charged by the department for each dishonored check ((dishonored by the financial institution)).
[Statutory Authority: RCW 46.01.110, 82.36.435, 82.38.260, 82.42.040, 46.87.010(2). 00-08-032, § 308-77-290, filed 3/28/00, effective 4/28/00.]
WAC 308-77-092 Refund for bad debt loss (other than a special fuel supplier).
WAC 308-77-093 Delinquent account notification process.
WAC 308-77-097 IFTA recordkeeping requirements.
WAC 308-77-101 Tax exempt sales.
WAC 308-77-107 Interest assessment on refund claims.
WAC 308-77-170 Metric measurement.