Oregon Administrative Rules › Chapter 735 - DEPARTMENT OF TRANSPORTATION, DRIVER AND MOTOR VEHICLE SERVICES DIVISION › Division 174 - FUEL TAX REFUNDS AND PENALTIES › Section 735-174-0020 - Records and Invoice Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 A tax refund claimant must retain records to substantiate a claim. Failure of
			 the claimant to maintain required records and provide them for examination by
			 the Department constitutes a waiver of all rights to the refund.
(2) The following rules shall govern records
			 maintained to support refund claims and apply to all fuel maintained in storage
			 other than a fuel can with a capacity of five gallons or less:
(a) The fuel storage tank must be equipped
			 with a properly working metering device or have a consistent method for
			 determining the amount of fuel withdrawn from storage for fuel to be considered
			 for refund. For storage tanks equipped with a metering device, meter readings
			 must be taken and documented each time fuel is dispensed.
(b) If more than one storage tank is
			 maintained, tanks must be named or labeled and the invoices must be marked, by
			 the supplier, at the time of delivery to identify the storage tank into which
			 the fuel was delivered and indicate the accurate amount of fuel placed in each
			 tank.
(c) Consumption records must
			 be maintained for all bulk storage tanks regardless of the fuel use. All fuel
			 purchases and distributions must be fully accounted for by detailed withdrawal
			 records, to accurately show the manner in which it was used. This includes
			 monthly meter readings and inventory readings.
(A) Consumption records must be made
			 available upon request by the Department when fuel is used from a bulk storage
			 tank.
(B) The separate storage
			 method is not a sufficient means to determine refundable and non-refundable
			 usage without the support of consumption records.
(d) Any fuel on hand (by actual measurement)
			 should be deducted from a claim and should be reported as an opening inventory
			 on the next claim. Credit for the inventory will be allowed on the next claim
			 if it is filed within fifteen months from the filing date of the claim that
			 established the inventory.
(e)
			 Fuel Purchased for Other than Bulk Storage. Motor vehicle fuel purchased in
			 small containers for non-highway use only, should be so identified on the
			 purchase invoice as to the type of container or equipment fueled and include
			 the name or signature of the purchaser.
(f) Fuel purchased at a cardlock. When fuel
			 is purchased at a cardlock and a portion of that fuel is refundable the
			 following conditions must be met:
(A) Cards
			 must be assigned to a specific vehicle and the vehicle plate number, unit
			 number, or description must be included on the cardlock statement at the time
			 the statement is produced.
(B)
			 Cards must be assigned to a piece of equipment or group of equipment and that
			 must be indicated on the cardlock statement at the time the statement is
			 produced.
(C) Cards must be
			 assigned to a mobile fuel storage tank that is designated to contain gasoline
			 to fill a group of equipment, and this must be indicated on the cardlock
			 statement at the time the statement is produced. A mobile tank that is fueled
			 at a cardlock is considered to be bulk storage.
(g) Proof of Highway Use. When minimal or no
			 non-refundable use deduction, as determined by the Department, is made from
			 invoices attached to the claim, the claimant should be prepared to show
			 additional invoices or other proof of purchase of public road fuel upon request
			 of the Department.
(A) Proof of
			 non-refundable use includes all fuel purchases for all vehicles registered to
			 the claimant.
(B) Proof of
			 non-refundable use does not eliminate the requirements to keep and provide,
			 upon request of the Department, consumption records for fuel used from a bulk
			 storage tank that includes fuel used only in a refundable manner.
(h) Persons claiming a tax refund
			 on motor vehicle fuel exported to another state in the fuel supply tank of a
			 motor vehicle are required to provide the following:
(A) Evidence of payment of tax to another
			 state and information for each vehicle showing the source of all motor vehicle
			 fuel used, the total number of miles traveled, and the miles traveled in each
			 state; and
(B) Evidence
			 satisfactory to the Department of the amount of motor vehicle fuel that was
			 exported
(i) A person
			 or agency who operates a licensed motor vehicle on and off public highways may
			 claim a refund of the Oregon tax on the fuel used to operate the vehicle as
			 designated in ORS 319.320(1) and
			 319.320(4). The
			 refund can be approved only if the claimant has maintained and provided the
			 following records:
(A) The total miles
			 operated as established by a working odometer for each licensed motor vehicle,
			 including private passenger cars during the entire claim period; and
(B) The total gallons of fuel used in the
			 vehicle to include both refundable and non-refundable use;
(C) The source of the fuel used in the
			 vehicle to include purchase invoices supporting all fuel handled through bulk
			 storage, as well as all fuel purchased at service stations, or received from
			 other sources; and
(D) Calculation
			 of highway fuel used for each vehicle, determined by calculating the total
			 miles driven divided by the total gallons of fuel used and applying the
			 resulting miles per gallon to total off road miles.
(j) Claims covering the operation of
			 unlicensed motor vehicles entirely over roads or property subject to refund are
			 required to establish the source and number of gallons of motor vehicle fuel
			 used by consumption records.
(k)
			 The claimant must be able to establish to the satisfaction of the Department
			 the amount of fuel used in a refundable manner.