New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 18A - PETROLEUM GROSS RECEIPTS TAX › Subchapter 1 - SCOPE AND DEFINITIONS › Section 18:18A-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter, shall
				  have the following meanings, unless the context clearly indicates otherwise.
				  Additional words and terms are also set forth in the statute at
54:15B-2
.
"Act" means the "Petroleum Products Gross Receipts Tax Act," as
				  set forth at
54:15B-1
et seq., and any
				  subsequent amendments.
"Blending" means combining, compounding, or mixing one or more
				  petroleum products with additives or other substances resulting in a new or enhanced
				  petroleum product.
"Book transfer" means:
1. An accounting procedure for simultaneously settling multiple
				  petroleum delivery obligations in which all of the following occurs:
i. Three or more petroleum companies have sequential product
				  supply obligations to each other for the same volume of product;
ii. Each customer of its supplier in the sequence agrees to
				  release its supplier from its delivery obligation in consideration for that
				  customer's supplier causing (directly or indirectly) its customer to be released
				  from its delivery obligation to the next party in the sequence;
iii. The sequential releases continue down the chain until the
				  first party in the delivery chain, which has been released from its delivery
				  obligation, becomes the last party in the chain by releasing the penultimate party
				  from its delivery obligation;
iv. No physical volume of product is ever transferred; and
v. All parties book identical volumes from beginning to
				  end.
2. In addition, and for purposes of this chapter only, a book
				  transfer may also mean and include a sale from a direct payment permit holder to
				  another direct payment permit holder.
"Co-generation facility" means a facility the primary purpose of
				  which is the sequential production of electricity and steam or other forms of useful
				  energy that are used for industrial or commercial heating or cooling purposes and
				  which is designated by the Federal Energy Regulatory Commission, or its successor,
				  as a "qualifying facility" pursuant to the provisions of the Public Utility
				  Regulatory Policies Act of 1978, Pub. L. 95-617.
"Commercial consumers" means those companies that produce,
				  consume, blend or distribute substantial quantities of petroleum products in the
				  state, companies making sales pursuant to a written contract extending one year or
				  longer to nonprofit entities qualifying under
				  54:32b-9(b)  as
				  evidenced by an invoice prescribed by
				  18:18A-1.2, and companies making sales
				  to governmental entities qualifying under
				  54:32B-9(a), or such
				  other company as may be licensed by the Director.
"Company" means a corporation, partnership, limited partnership
				  association, individual, or any fiduciary or other person or entity engaged in
				  activities subject to the Petroleum Products Gross Receipts Tax Act.
"Director" means the Director of the Division of Taxation in the
				  Department of Treasury.
"Direct payment permit holder" means a company licensed by the
				  Director pursuant to
54:15B-12
and
				  other registered vendors, including purchasers of dyed fuel. Direct payment permit
				  holders are authorized to file reports and remit applicable tax directly to the
				  Director.
"Exchange agreement" means the loaning of a petroleum product by
				  one company to another company to facilitate supply needs at a particular location.
				  An exchange balance settlement is a common method used to balance out the product
				  receivable at a specified time. An exchange balance settlement is an economic value
				  established for the volumes involved and booked accordingly by each party to the
				  exchange.
"Exempt organization" means an organization authorized as an
				  exempt organization with the Division of Taxation for sales and use tax
				  purposes.
"Exportation" or "export" means the conveyance of petroleum
				  products from New Jersey to a location outside New Jersey for the purpose of sale or
				  use outside the State.
"First sale of petroleum products within this State" means the
				  initial sale of petroleum products delivered to a location in New Jersey and sold to
				  a purchaser which is not the holder of a direct payment permit. A "first sale of
				  petroleum products within this State" does not include a book or exchange transfer
				  of petroleum products, if such products are intended to be sold in the ordinary
				  course of business.
"Gross receipts" means all consideration derived from first sales
				  of petroleum products within this State. In addition to the exclusions set forth at
54:15B-2.1
and 2.2, Gross
				  receipts do not include:
1. Consideration derived from sales to a company that has been
				  issued an ST-5 exemption certificate by the Division of Taxation pursuant to the
				  Sales and Use Tax Act, has a written contract with its vendor extending one year or
				  longer, and has a written invoice to evidence the transaction;
2. Consideration derived from sales of petroleum products sold to
				  the State of New Jersey, or any of its agencies, instrumentalities, public
				  authorities, public corporations, political subdivisions, or school boards;
3. Consideration derived from the first sale of petroleum
				  products to the United States Government, or to any of its departments, agencies, or
				  instrumentalities for use in a Federal government function or operation;
4. Consideration derived from sales of petroleum products sold to
				  the United Nations or any international organization of which the United States of
				  America is a member;
5. The tax imposed under
54:15B-3
; and
6. Sales of petroleum products used by a utility, a co-generation
				  facility, or a wholesale generation facility to generate electricity for resale or
				  to an end user, except if the end user is the facility used to generate the
				  electricity or the end user is the owner of the property in which the co-generation
				  facility is located or connected to.
"Invoice" means a document related to a sale showing:
1. The name and address of the person from whom the petroleum
				  products were purchased;
2. The name and address of the purchaser;
3. The date of purchase;
4. The type and quantity of the product purchased;
5. The price paid for the purchase of the product and the amount
				  of tax may be separately stated if that amount is known, or the amount of tax may be
				  included in the receipt with a statement that the receipt includes New Jersey
				  Petroleum Products Gross Receipt Tax; and
6. An acknowledgment by the seller that payment of the cost of
				  the product to the seller has been made.
"Petroleum products" means products that are specified as
				  petroleum products under
54:15B-2
and may
				  also include certain finished manufactured products. The definition does not include
				  certain finished manufactured products that may contain petroleum as an ingredient
				  but are not themselves deemed petroleum products.
"Residential building" means a single or multi-family dwelling,
				  nursing home, trailer, condominium, boarding house, apartment house or other
				  structure designed primarily for use as a dwelling including a hospital, barracks,
				  dormitory, or prison but not including a hotel, motel or like establishment offering
				  shelter on a transient basis of less than 90 days.
"Residential use" includes the use of No. 2, No. 4, or No. 6 fuel
				  oil, kerosene, and propane in a residential building.
"Sale for exportation" means a sale of petroleum products to a
				  purchaser who exports the product.
"Use" means the exercise of any rights or power over a petroleum
				  product by a purchaser or importer thereof including, but not limited to, the
				  receiving, storage or any keeping or retention for any length of time, withdrawal
				  from storage, any installation or affixation to real or personal property,
				  combustion or incorporation into a product for sale which product is not an
				  identifiable petroleum product. The term "use" does not include blending,
				  compounding, or packaging where the resulting product is also a petroleum product.
				  The term "use" does not include storage or keeping of petroleum products held in
				  inventory by a merchant that are exported from the State for sale or use outside the
				  State.
"Wholesale generation facility" means a facility the primary
				  purpose of which is the sequential production of electricity to be sold exclusively
				  at wholesale as determined by the Federal Energy Regulatory Commission, or its
				  successor, as an "exempt wholesale generator" pursuant to the provisions of section
				  32 of the 'Public Utility Holding Company Act of 1935,' 15 U.S.C. §
				  79z-5a.