Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 7 - Special Fuels Tax › Section 710:55-7-5 - Credits; refunds

Current through Vol. 41, No. 20, July 1, 2024
(a) Where, in any
				given tax reporting period, a Special Fuel Dealer or Special Fuel User has paid
				Oklahoma Special Fuel Tax on an amount of special fuel part of which was
				subsequently and actually consumed in motor vehicles outside the State of
				Oklahoma, such Dealer or User shall be allowed a "credit" in an amount equal to
				the special fuel tax rate per gallon times the number of gallons used outside
				of Oklahoma. The burden is upon the Taxpayer to claim the credit and to furnish
				sufficient evidence to support this claim.
(b) The credit may be carried over and
				applied to any month following the month in which the credit arose.
EXAMPLE: X Consumes one thousand (1,000) gallons of special
				  fuel in Oklahoma in January 1988. X purchased special fuel tax paid in Oklahoma
				  in the amount of one thousand five hundred (1,500) gallons in the same month.
				  Assume that X can show that all one thousand five hundred (1,500) gallons were
				  used in January 1988 but that five hundred (500) gallons were consumed outside
				  Oklahoma. X would be entitled to a credit equivalent to the special fuel tax
				  rate times five hundred (500) gallons on the January 1988 monthly report.
				  [
See:
68 O.S. §
										722
				  ]
(c) Instead of carrying
				the credit over to succeeding months, the Taxpayer is also entitled to claim a
				refund. Such refund is computed on the same basis as the credit. However, the
				claim for refund must be made within one (1) year from the first day of the
				calendar month in which the special fuel was use. Upon the expiration of one
				(1) year, computed from the first day of the calendar month in which the
				special fuel was used, the right to claim the refund as to any and all of the
				amount still remaining, shall be deemed extinguished.
(d) If special fuel is purchased in one month
				but the use outside Oklahoma, giving rise to a credit or claim for refund under
				this section, occurs in more than one month, the allowable credit shall be
				apportioned to each of the months in which the use occurred, based on the
				actual use and consumption for the month.
EXAMPLE: X purchased five hundred (500) gallons in Oklahoma
				  of special fuel tax paid on September 30,1988. On that same day X uses fifty
				  (50) gallons in Oklahoma and two hundred (200) gallons outside Oklahoma. The
				  next day, October 1, 1988, X uses the remaining two hundred fifty (250) gallons
				  outside Oklahoma.
As X used two hundred (200) gallons outside Oklahoma on
				  September 30, 1988, he is entitled to claim a credit or refund on that amount
				  on his report for September, 1988. The last month in which he can claim refund
				  attributable to the two hundred (200) gallons is August, 1989.
As to the two hundred fifty (250) gallons, he cannot claim
				  that credit or refund until he submits his October report. Likewise, the last
				  month in which he can claim refund on the two hundred fifty (250) gallons is
				  September, 1989.