PERMANENT RULES
Date of Adoption: September 18, 1999.
Purpose: Meet criteria supporting Governor Locke's Executive Order 97-02.
Citation of Existing Rules Affected by this Order: Amending WAC 308-78-020 Bond requirements and collection, 308-78-030 Required reports, 308-78-040 Tax exempt transactions and invoice requirements, 308-78-045 Tax exempt use, 308-78-050 Supporting documents for tax exempt transactions, 308-78-060 Tax exempt losses, 308-78-070 Records, 308-78-080 Refunds, and 308-78-090 Mitigation of penalties and/or interest.
Statutory Authority for Adoption: RCW 88.42.040.
Adopted under notice filed as WSR 99-15-096 on July 21, 1999.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 9, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 9, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
September 20, 1999
Fred Stephens
Director
OTS-3282.1
AMENDATORY SECTION(Amending Order MV 696, filed 10/6/82)
WAC 308-78-020
((License and)) Bond requirements and
collection.
(1) ((Every distributor shall be licensed and bonded
as is provided in chapter 82.36 RCW.
(2) Any person, other than a distributor, whose major use of
aircraft fuel is for a tax exempt use specified in RCW 82.42.020
or 82.42.030, may be issued an aircraft fuel user license as
authority to purchase the fuel without payment of the tax imposed
by RCW 82.42.020 at time of purchase. Verification by the
aeronautics division of the Washington department of
transportation of the tax exempt usage will be required.)) As an
aircraft fuel tax distributor must I be bonded in order to
receive a license? Yes, every aircraft fuel tax distributor must
be licensed and bonded as is provided in chapter 82.36 RCW.
(2) Can the department collect on bonds for unpaid aircraft fuel taxes? Yes, the department may execute bonds on file under the provisions of chapter 82.36 RCW for unpaid taxes owing under chapter 82.42 RCW.
[Statutory Authority: RCW 82.42.040. 82-20-093 (Order MV 696), § 308-78-020, filed 10/6/82; Order 69-10-2, § 308-78-020, filed 10/29/69; Rule A, filed 9/12/67; Emergency Rule A, filed 7/21/67.]
(1) ((Every licensed
distributor and user of aircraft fuel shall submit to the
department of licensing, on or before the 25th day of each month,
on forms furnished by the department:
(a) A signed statement showing the total number of gallons
of aircraft fuel acquired, sold, delivered, and used during the
preceding calendar month;
(b) A report of the number of gallons of aircraft fuel
resulting in an increase or decrease of stock in bulk and/or
mobile storage facilities;
(c) Such other data as necessary to support the various
entries on the reports. The format of the Uniform Motor Fuel Tax
Multiple Schedules shall be used for the supporting data unless a
different format is specifically required by the department.
(2) A report shall be rendered each month regardless of
whether fuel has been received or dispensed during the
immediately preceding calendar month. The department may permit
a user whose sole use of aircraft fuel is for tax exempt purposes
to submit one annual report in lieu of monthly reports.
(3) Reports required by subsection (1) of this section may
be submitted on computer-generated forms in lieu of the forms
furnished by the department provided that the format is identical
to the report forms preprinted by the department.)) What reports
are required by the department for aircraft fuel tax and when are
they due? Every licensed distributor of aircraft fuel shall
submit signed tax returns and schedules to the department of
licensing, on or before the 25th day of each month, or as
required by the department. Forms shall be furnished or approved
by the department.
(2) Is a report due if I have no activity for the month? Yes, a report shall be filed with the department for each calendar month even when no aircraft fuel was sold or used.
(3) Can tax return information be made available to other government agencies? Yes, the department routinely furnishes copies of schedules to government agencies or foreign jurisdictions.
[Statutory Authority: RCW 82.42.040. 90-13-039 (Order PFT 90-05), § 308-78-030, filed 6/14/90, effective 7/15/90; 82-20-093 (Order MV 696), § 308-78-030, filed 10/6/82; Order 69-10-2, § 308-78-030, filed 10/29/69; Rule B, filed 9/12/67; Emergency Rule B, filed 7/21/67.]
(((See WAC 308-78-080--Refunds) A distributor may
sell aircraft fuel without collecting aircraft fuel tax when
delivery is made by the distributor:
(1) To a buyer at a point outside the state; or
(2) To a common or contract carrier under a bill of lading
naming the distributor as consignor to the buyer outside the
state; or
(3) To United States or foreign government agencies; or
(4) To aircraft fuel users licensed by the department; or
(5) Directly into the aircraft fuel tanks of equipment
operated by air carriers, supplemental air carriers, and foreign
flag carriers operating under part 121 of the Federal Aviation
Regulations, and local service commuters; or
(6) To another licensed distributor; or
(7) To a person who purchases and exports the fuel under the
provisions of RCW 82.42.030. The fuel is considered sold for
export under the provisions of RCW 82.42.030 if the fuel is
delivered in the state into the transportation equipment of the
purchaser or a common or contract carrier employed by the
purchaser, and the purchaser transports the fuel and unloads it
at a location outside the state. The selling distributor must
issue to the purchaser an invoice which shall contain at least
the following details:
(a) Name and address of seller;
(b) Name and address of purchaser;
(c) The date of delivery (month, day, and year);
(d) The location of the point of shipment, in words;
(e) The place of delivery, in words, if different from
shipping point;
(f) Purchaser's method of transporting fuel (either customer
equipment, common carrier, or pipeline, if by common carrier,
common carrier's name);
(g) State or foreign jurisdiction of destination;
(h) Name of product sold;
(i) The quantity, in gallons, of product sold;
(j) The price per gallon and total amount charged; and
(k) The statement: "Ex Washington State Fuel Tax."
The original copy of the invoice must be furnished the
purchaser; a copy of the invoice must be kept by the selling
distributor as required by RCW 82.42.040 and WAC 307-78-070.
These sales shall be supported by Schedule 10, Uniform Motor
Vehicle Fuel Tax Multiple Schedule of Disbursements (Form FT
441-841), a separate schedule for each state of destination. The
department shall furnish the government agency of the state or
foreign jurisdiction of destination a copy of this Schedule 10 to
give information on the movement of untaxed fuel across state
lines.)) (1) When may a licensed distributor sell aircraft fuel
without collecting the aircraft fuel tax? A licensed distributor
may sell aircraft fuel without collecting the aircraft fuel tax,
when delivery is made by the distributor to one of the following:
(a) A destination outside the state;
(b) United States or foreign government agencies;
(c) Directly into the aircraft fuel tanks of equipment operated by air carriers, supplemental air carriers, and foreign flag carriers operating under part 121 of the Federal Aviation Regulations, and local service commuters;
(d) Another licensed distributor; or
(e) To a purchaser who delivers the fuel for export purposes (fuel must be unloaded at a location outside the state) under RCW 82.42.030 in the state into:
(i) Purchaser's transportation equipment; and/or
(ii) A common/contract carrier employed by the purchaser at a location outside the state.
(2) What invoices are required and how are they distributed? An original invoice must be furnished to the purchaser; the selling distributor as required by RCW 82.42.040 and WAC 308-78-070 must keep a copy of the invoice.
(3) What information must an invoice include? The selling distributor must issue to the purchaser an invoice, which shall contain at least the following:
(a) Name and address of seller;
(b) Name and address of purchaser;
(c) The date of delivery (month, day, and year);
(d) The location of the point of shipment, in words;
(e) The place of delivery, in words, if different from shipping point;
(f) Purchaser's method of transporting fuel (either customer equipment, common carrier, or pipeline, if by common carrier, common carrier's name);
(g) State or foreign jurisdiction of destination;
(h) Name of product sold;
(i) The quantity, in gallons, of product sold;
(j) The price per gallon and total amount charged; and
(k) The statement: "Ex Washington State Fuel Tax."
[Statutory Authority: RCW 82.42.040. 90-13-039 (Order PFT 90-05), § 308-78-040, filed 6/14/90, effective 7/15/90; 85-04-027 (Order PFT 85-001), § 308-78-040, filed 1/31/85; 82-20-093 (Order MV 696), § 308-78-040, filed 10/6/82; Order 69-10-2, § 308-78-040, filed 10/29/69; Rule C, filed 9/12/67; Emergency Rule C, filed 7/21/67.]
What are the conditions under which I can claim an exemption of aircraft fuel tax? Exemption from the aircraft fuel tax may be claimed for the uses specified in RCW 82.42.020 and 82.42.030 subject to the following conditions:
(1) Operation of aircraft by air carriers, supplemental air carriers, and foreign flag carriers, operating under part 121 of the Federal Aviation Regulations, and local service commuters.
(2) ((Exemption from the aircraft fuel tax)) For testing and
experimental purposes ((shall be granted only to persons
primarily engaged)) in the manufacture or remanufacture of
aircraft and ((only)) for flight operations of ((an))
experimental ((aircraft or an aircraft being tested)) testing
following manufacture ((or)), repair prior to delivery to a
customer((. Fuel used in the operation of an aircraft which is
necessary to the conduct of a test)) or experimental ((flight))
testing of another aircraft ((is also tax exempt)).
(3) ((Aircraft fuel used in connection with)) For aircraft
crew training ((shall be exempt from the aircraft fuel tax when:
(a) The personnel receiving training are the crews of a)) in
Washington state for certified air carriers((; (b) the aircraft
used for training purposes may appropriately be used to train
crews to operate the type of aircraft purchased by the air
carrier; (c) the crew training occurs in Washington state; and
(d) the primary purpose of the flight is for crew training and
not for an otherwise taxable purpose)).
(4) ((Exemption from the aircraft fuel tax for application
of)) When applying pesticides, herbicides or other agricultural
chemicals ((will be allowed only for fuel consumed while the
chemicals are being applied and for flight operations attendant
thereto)) and for flight operations as defined in RCW 82.42.020.
[Statutory Authority: RCW 82.42.040. 85-04-027 (Order PFT 85-001), § 308-78-045, filed 1/31/85; 82-20-093 (Order MV 696), § 308-78-045, filed 10/6/82.]
What types of supporting documents must be
retained for tax exempt transactions? The distributor shall
retain sales invoices, contracts, purchase orders, bills of
lading and other documents in support of the tax exemption
claimed. ((Records must be kept in original form for three
years.))
[Statutory Authority: RCW 82.42.040. 85-04-027 (Order PFT 85-001), § 308-78-050, filed 1/31/85; 82-20-093 (Order MV 696), § 308-78-050, filed 10/6/82; Order 69-10-2, § 308-78-050, filed 10/29/69; Rule D, filed 9/12/67; Emergency Rule D, filed 7/21/67.]
((Exemption from the
aircraft fuel tax shall be allowed a licensed distributor or user
for fuel lost or destroyed through fire, lightning, flood, wind
storm, explosion, accident, or other casualty, or verified
leakage of five hundred gallons or more. Proof of loss must be
submitted consisting of documentation substantiating the
circumstances surrounding the loss, ownership of the fuel, the
exact quantity of the loss, and other documents required by the
department to establish the validity of the claim. Exemption
from the tax will not be allowed on losses claimed from
evaporation, shrinkage, or unknown causes.)) (1) If aircraft fuel
is destroyed can I still claim an exemption? You may claim an
exemption if fuel is destroyed through fire, lightning, flood,
wind storm, explosion, accident, or other casualty.
(2) May I claim an exemption for losses due to leakage? Yes, if verified leakage is five hundred gallons or more.
(3) What supporting documents are needed for this aircraft fuel tax exempt loss? Losses of aircraft fuel must be substantiated by submitting documentation identifying the circumstances surrounding the loss, ownership of the fuel, the exact quantity of the loss, and other documents required by the department to establish the validity of the claim.
(4) May I claim an exemption for losses of aircraft fuel due to evaporation, shrinkage or unknown causes? No, aircraft fuel losses due to evaporation, shrinkage or unknown causes will not be permitted.
[Statutory Authority: RCW 82.42.040. 82-20-093 (Order MV 696), § 308-78-060, filed 10/6/82; Order 69-10-2, § 308-78-060, filed 10/29/69; Rule E, filed 9/12/67; Emergency Rule E, filed 7/21/67.]
(1) ((Stock records. Every
distributor and user shall maintain a complete stock summary of
the gallons of aircraft fuel handled each month which reflects
inventories, receipts, sales, use, transfers, loss or gain, and
other distribution. The stock summary shall be supported by:
(a) Physical inventories of bulk storage facilities and
mobile storage facilities taken at the close of each calendar
month;
(b) A record of fuel receipts together with invoices, bills
of lading, transfer documents, and other documents relative to
the acquisition of fuel;
(c) A record of fuel disbursements supported by sales
invoices and other documents relative to the disbursements of
fuel.
(2) Invoices. An original invoice shall be issued at the
time of each sale, or delivery, and shall show:
(a) The name of the distributor;
(b) The date of delivery;
(c) The name and address of the purchaser (address not
required on credit card deliveries);
(d) The location of the storage facility from which the fuel
was withdrawn;
(e) The type or grade of fuel;
(f) The number of gallons sold or delivered;
(g) The price per gallon and the total amount charged;
(h) The statement: "Ex Washington Aircraft Fuel Tax" for
tax exempt sales. The distributor or user license number must be
shown for all deliveries other than those made directly into the
aircraft fuel tanks of unlicensed exempt carriers.
(3) Own use. Every distributor and user shall maintain a
withdrawal record covering their own total usage during the
month. The withdrawal record shall contain the date of
withdrawal, the location of the storage facility from which the
fuel was withdrawn, the type or grade of fuel, and the number of
gallons withdrawn.
(4) Each person claiming an exemption from the aircraft fuel
tax shall keep records in a form convenient to the operator, of
each flight or series of flights for which tax exempt use is
claimed. Such records shall include:
(a) Flight or block time of each flight or series of
flights;
(b) Type of aircraft;
(c) Purpose of each flight or series of flights;
(d) Dates;
(e) Gallons consumed for each flight or series of flights.
(5) Maintenance and audit of records. Every distributor and
user shall maintain and keep for a period of not less than three
years in their original form such records as the department may
require. The department may make such examinations of the
records, stocks, facilities, equipment, and aircraft of
distributors and users as necessary in carrying out the
provisions of chapter 10, Laws of 1967 ex. sess., as amended. If
such examination or investigations disclose that any reports
filed with the department have shown incorrectly the gallonage of
aircraft fuel or the tax accruing thereon, the department may
make such changes in subsequent reports and payments as necessary
to correct the errors disclosed.)) What records must a
distributor, certified user, or consumer of aircraft fuel
maintain? The following records must be maintained:
(a) Physical inventories of bulk storage facilities and mobile storage facilities taken at the close of each calendar month;
(b) A record of fuel receipts together with invoices, bills of lading, transfer documents, and other documents relative to the acquisition of fuel;
(c) A record of fuel disbursements supported by sales invoices and other documents relative to the disbursements of fuel;
(d) An original invoice shall be issued at the time of each sale, or delivery, and shall show:
(i) The name of the distributor;
(ii) The date of delivery;
(iii) The name and address of the purchaser (address not required on credit card deliveries);
(iv) The location of the storage facility from which the fuel was withdrawn;
(v) The type or grade of fuel;
(vi) The number of gallons sold or delivered;
(vii) The price per gallon and the total amount charged;
(viii) The statement: "Ex Washington Aircraft Fuel Tax" for tax exempt sales. The distributor or user license number must be shown for all deliveries other than those made directly into the aircraft fuel tanks of unlicensed exempt carriers;
(e) A withdrawal record covering their own total usage during the month. The withdrawal record shall contain the date of withdrawal, the location of the storage facility from which the fuel was withdrawn, the type or grade of fuel, and the number of gallons withdrawn;
(f) Each person claiming an exemption from the aircraft fuel tax shall keep records of each flight or series of flights for which tax exempt use is claimed. Such records shall include:
(i) Flight or block time of each flight or series of flights;
(ii) Type of aircraft;
(iii) Purpose of each flight or series of flights;
(iv) Dates;
(v) Gallons consumed for each flight or series of flights.
(2) How long must I retain my records? Records shall be maintained and kept for a period of not less than five years in their original form. The department may make such examinations of the records, facilities, equipment, and aircraft of distributors, certified users and consumers of aircraft fuel as necessary in carrying out the provisions of this chapter.
[Statutory Authority: RCW 82.42.040. 90-13-039 (Order PFT 90-05), § 308-78-070, filed 6/14/90, effective 7/15/90; 85-04-027 (Order PFT 85-001), § 308-78-070, filed 1/31/85; 82-20-093 (Order MV 696), § 308-78-070, filed 10/6/82; Order 69-10-2, § 308-78-070, filed 10/29/69; Rule F, filed 9/12/67; Emergency Rule F, filed 7/21/67.]
(1) ((Any person claiming a refund
for aircraft fuel tax shall file a claim upon forms provided by
the department in the same manner and under the same conditions
as provided for refund of motor vehicle fuel in RCW 82.36.310.
(2) A refund of aircraft fuel tax, which has been collected,
may be claimed on aircraft fuel which has been:
(a) Used for purposes exempted under RCW 82.42.020 or
82.42.030;
(b) Exported from this state for use outside this state
under the same conditions as provided for refund of motor vehicle
fuel in RCW 82.36.300. Any aircraft fuel carried from this state
in the fuel tank of an aircraft shall not be considered as
exported from this state;
(c) Used in equipment, other than aircraft, not licensed to
be operated over and along any public highway as provided for
refund of motor vehicle fuel in RCW 82.36.280;
(d) Lost or destroyed under the same conditions as provided
for tax exempt losses in WAC 308-78-060;
(e) Sold by a dealer who has paid the aircraft fuel tax, to
the United States or foreign government agencies. The dealer
shall file an exemption certificate, which shall contain an
assignment to the dealer of the purchaser's right to a refund,
and each invoice covering such sale shall have the statement:
"Ex Washington Aircraft Fuel Tax" clearly marked thereon.
(3) Claims for refund may be filed at any time but not later
than thirteen months from the date of purchase of such aircraft
fuel under the same conditions as provided for motor vehicle fuel
in RCW 82.36.330.
(4) The department may examine the books and records of the
claimant in order to establish the validity of any claim for
refund under the same conditions as provided for motor vehicle
fuel in RCW 82.36.340.)) What do I have to do to claim a refund
for aircraft fuel? In order to claim a refund for aircraft fuel
tax, you shall file a claim upon forms provided by the department
in the same manner and under the same conditions as provided for
refund of motor vehicle fuel in RCW 82.36.310.
(2) What is considered a tax exempt refund? A refund of aircraft fuel tax, which has been collected, may be claimed on aircraft fuel that has been:
(a) Used for purposes exempted under RCW 82.42.020, or 82.42.030 and WAC 308-78-040, 308-78-045 and 308-78-060;
(b) Exported from this state for use outside this state under the same conditions as provided for refund of motor vehicle fuel in RCW 82.36.300. Any aircraft fuel carried from this state in the fuel tank of an aircraft shall not be considered as exported from this state;
(c) Used in nonhighway equipment, other than aircraft, as provided for refund of motor vehicle fuel in RCW 82.36.280;
(d) Sold to United States or foreign government agencies by a dealer who has paid the aircraft fuel tax. The dealer shall file an exemption certificate provided by the department. This certificate shall contain an assignment to the dealer of the purchaser's right to a refund. Each invoice covering such sale shall clearly state the fuel has been sold without the aircraft fuel tax.
(3) Is there a time limit to claim an aircraft fuel tax refund? Yes, claims for refund may not be filed later than thirteen months from the date of purchase of such aircraft fuel under the same conditions as provided for motor vehicle fuel in RCW 82.36.330.
(4) Can the department verify the validity of refund claims? Yes, the department may examine the books and records of the claimant in order to establish the validity of any claim for refund under the same conditions as provided for motor vehicle fuel in RCW 82.36.340.
[Statutory Authority: RCW 82.42.040. 85-04-027 (Order PFT 85-001), § 308-78-080, filed 1/31/85; 82-20-093 (Order MV 696), § 308-78-080, filed 10/6/82; Order 69-10-2, § 308-78-080, filed 10/29/69; Rule G, filed 9/12/67; Emergency Rule G, filed 7/21/67.]
((The department, in its discretion, may mitigate, extinguish or
adjust penalties and interest arising from late or missing fuel
tax returns, unpaid or underpaid taxes, lack of complete records
to support reported fuel usage, or license revocation penalties,
when reasonable cause is shown by the taxpayer or as indicated
from the records on file with the department that failure to
comply with the requirements of this chapter was not intentional
or unreasonable.
The department, after review of records furnished and/or tax
returns available, may take into consideration a taxpayer's
history of underpayments and overpayments, late payment(s), late
filing of tax returns, or incomplete records in arriving at its
decision to mitigate.
Taxpayers who fail to pay assessed taxes on a timely basis
may have late payment penalties and interest mitigated if the
individual, partnership or corporation is able to establish that
failure to take such payment action within a 30 day period after
service of an assessment was based upon an internal business or
employee oversight, or other unavoidable reasonable
circumstance.)) (1) Under what circumstances may a penalty and/or
interest be waived? The department, in its discretion, may
mitigate, extinguish or adjust penalties and/or interest arising
from late or missing fuel tax returns, unpaid or underpaid taxes,
lack of complete records to support reported fuel usage, or
license revocation penalties, when reasonable cause is shown by
the taxpayer or as indicated from the records on file with the
department that failure to comply with the requirements of this
chapter was not intentional or unreasonable.
(2) How will the department determine whether penalties and/or interest will be mitigated? The department, in its discretion, and after review of records furnished and/or tax returns available, may take into consideration a taxpayer's history of underpayments and overpayments, late payment(s), late filing of tax returns, or incomplete records in arriving at its decision to mitigate.
(3) What happens if I do not pay my tax assessment on time? You will be assessed additional penalties and/or interest.
(4) Under what circumstances may assessed late payment penalties and/or interest be mitigated? The department, in its discretion, may mitigate late payment penalties and/or interest if the taxpayer provides reasonable cause for failure to make payment within a thirty-day period after service of an assessment.
[Statutory Authority: RCW 82.42.040 and 82.42.100. 92-01-015, § 308-78-090, filed 12/6/91, effective 1/6/92.]