An Act To Improve the Accuracy of Fuel Tax Reporting
Maine Legislature, Session 126, LD 0996
Committee Amendment CA_A_S109 (Senate)
Amends: 36 MRSA §2906, 36 MRSA §3202, 36 MRSA §3203

COMMITTEE AMENDMENT "A " to S.P. 341, L.D. 996, Bill, "An Act To 
Improve the Accuracy of Fuel Tax Reporting" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRS A §2902, sub-§7 is enacted to read: 
7. Net gallons. "Net gallons" means the amount ofintemal combustion engine fuel 
measured in gallons when adjusted to a temperature of 60 degrees Fahrenheit and a 
pressure of 14.7 pounds per square inch. 
Sec. 2. 36 MRSA §2906, sub-§3, as amended by PL 2009, c. 434, §44, is further 
amended to read: 
3. Allowance for certain losses. An allowance of not more than 112 of 1 % from the 
amount of internal combustion engine fuel received by a licensed distributor, plus 112 of 
% on all transfers in vessels, tank cars or full tank truck loads by a licensed distributor in 
the regular course of the licensed distributor's business from one of the licensed 
distributor's places of business to another within the State, may be granted by the assessor 
to cover losses sustained by the licensed distributor through shrinkage, evaporation or 
handling. The total allowance for these losses must be supported by documentation 
satisfactory to the assessor and may not exceed 1 % of the receipts by the licensed 
distributor. The allowance must be calculated on an annual basis. A further deduction 
may not be allowed unless the assessor is satisfied upon definite proof submitted to the 
assessor that a further deduction should be allowed for a loss sustained through fire, 
accident or some unavoidable calamity. If a licensed distributor elects to account for fuel 
using net gallons, the allowance under this subsection is not applicable. 
Sec. 3. 36 MRSA §3202, sub-§4-A is enacted to read: 
4-A. Net gallons. "Net gallons" means the amount of special fuel measured in 
gallons when adjusted to a temp(~rature of 60 degrees Fahrenheit and a pressure of 14.7 
pounds per square inch. 
COMMIT'TEE AMENDMENT 
~<o. 
~. 
COMMIITEE AMENDMENT "A"to S.P. 341, L.D. 996 
Sec. 4. 36 MRSA §3203, sub-§5, as amended by PL 2009, c. 434, §50, is further 
amended to read: 
5. Allowance for certain losses of undyed distillates. An allowance of not more 
than 1/4 of 1 % from the amount of undyed distillates received by a licensed supplier, plus 
1/4 of 1 % on all transfers in vessels, tank cars or full tank truck loads by the licensed 
supplier in the regular course of business from one of the licensed supplier's places of 
business to another of the licensed supplier's places of business within the State, may be 
allowed by the assessor to cover the loss through shrinkage, evaporation or handling 
sustained by the licensed supplier. The total allowance for these losses must be supported 
by documentation satisfactory to the assessor and may not exceed 112 of 1 % of the 
receipts by the licensed supplier. The allowance must be calculated on an annual basis. 
A further deduction may not be allowed unless the assessor is satisfied upon definite 
proof submitted to the assessor that a further deduction should be allowed for a loss 
sustained through fire, accident or some unavoidable calamity. If a licensed supplier 
elects to account for fuel using net gallons, the allowance under this subsection is not 
applicable. 
Sec. 5. Application. This Act applies to tax returns filed for calendar year 2014 
and after.' 
SUMMARY 
This amendment replaces the bill and allows, beginning with tax returns filed for 
calendar year 2014, an option of using net gallons, which take temperature into account, 
when calculating inventory taxes on internal combustion engine fuel and special fuel 
instead of taking the allowance for certain losses. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Highway Fund 
Revenue 
General Fund 
Highway Fund 
• 
Revised: 05/17/13 ~c 
LD996 
LR 489(02) 
An Act To Improye the Accuracy of Fuel Tax Reporting 
Fiscal Note for Bill as Amen.ded by Co~mittee Amendment A"(S- rOG() 
CommIttee: Taxation 
Fisl~al Note Required: Yes 
Fiscal Note 
FY 2013-14 
$142 
$256,571 
FY 2014-15 
$203 
$366,530 
Projections 
FY 2015-16 
$203 
$366,530 
Projections 
FY 2016-17 
$203 
$366,530 
Other Special Revenue Funds 
($142) 
($256,571) 
($23,287) 
($203) 
($366,530) 
($33,267) 
($203) 
($366,530) 
($33,267) 
($203) 
($366,530) 
($33,267) 
Fiscal Detail and Notes 
This bill proposes to allow for the option of calculating the shrinkage allowance using net gallons of fuel, which 
would decrease Highway Fund revenue by $256,571 in fiscal year 2013-14 and $366,530 in fiscal year 2014-15 and 
beyond. It will also decrease General Fund revenue and Other Special Revenue Funds revenue within the 
Departments of Agriculture, Conservation and Forestry, Inland Fisheries and Wildlife and Marine Resources, as well 
as the TransCap Trust Fund within the Maine Municipal Bond Bank, for their portions of fuel tax receipts. 
LR0489(02) - Fiscal Note - Page 1 of 1