An Act To Improve the Accuracy of Fuel Tax Reporting
Maine Legislature, Session 126, LD 0996
Committee: Taxation
Sponsors: THIBODEAU, VOLK, BURNS, LANGLEY, GILLWAY, HARVELL, MORRISON
Amends: 36 MRSA §2902, 36 MRSA §2906, 36 MRSA §3202, 36 MRSA §3203

Legislative Document 
No. 996 
S.P. 341 
In Senate, March 12, 2013 
An Act To Improve the Accuracy of Fuel Tax Reporting 
Submitted by the Department of Economic and Community Development pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator THIBODEAU of Waldo. 
Cosponsored by Representative VOLK of Scarborough and 
Senators: BURNS of Washington, LANGLEY of Hancock, Representatives: GILLWAY of 
Searsport, HARVELL of Farmington, MORRISON of South Portland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2902, sub-§7 is enacted to read: 
7.  Net gallons.  "Net gallons" means the amount of internal 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 1/2 of 1% from the 
amount of the net gallons of internal combustion engine fuel received by a licensed 
distributor, plus 1/2 of 1% of the net gallons 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 measured in net gallons.  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.  A licensed distributor may elect to use gross gallons in lieu of net gallons to 
calculate the allowance provided by this paragraph. 
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 temperature of 60 degrees Fahrenheit and a pressure of 14.7 
pounds per square inch. 
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 the net gallons of undyed distillates received by a 
licensed supplier, plus 1/4 of 1% of the net gallons 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 1/2 of 1% of the receipts by the licensed supplier  measured 
in net gallons.  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.  A licensed supplier may elect to use gross 
gallons in lieu of net gallons to calculate the allowance provided by this paragraph. 
SUMMARY 
This bill improves the accuracy of Maine's fuel taxes by taking temperature into 
account when calculating inventory taxes on internal combustion engine fuel and special 
fuel.  Given Maine's climate, fuel distributors, wholesalers, importers and exporters 
experience fuel shrinkage during cold weather periods.  Currently, taxes are based on 
gross fuel amounts without adjustments for temperature or barometric pressure.  This bill 
provides consistency with practices in other states by requiring that fuel be measured in 
gallons after it is adjusted to a temperature of 60 degrees Fahrenheit and a barometric 
pressure of 14.7 pounds per square inch or in gross gallons if elected by the licensed 
supplier or licensed distributor.