WSR 09-07-076

PERMANENT RULES

DEPARTMENT OF LICENSING


(Vehicle Services Division)

(Prorate and Fuel Tax Administration)

[ Filed March 16, 2009, 10:58 a.m. , effective April 16, 2009 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: Changes in this rule are in accordance with Executive Order 97-02 regulatory improvement and the Executive Order 05-03 on plain talk. The rule has been changed so it is easier to understand as well as removed any redundancy or obsolete language.

Citation of Existing Rules Affected by this Order: Repealing WAC 308-72-830, 308-72-845, 308-72-855, 308-72-885 and 308-72-900; and amending WAC 308-72-50901, 308-72-720, 308-72-800, 308-72-805, 308-72-810, 308-72-815, 308-72-820, 308-72-835, 308-72-840, 308-72-850, 308-72-860, 308-72-865, 308-72-870, 308-72-880, 308-72-890, 308-72-895, 308-72-905, 308-72-910, 308-72-915, 308-72-920, and 308-72-925.

Statutory Authority for Adoption: RCW 82.36.435.

Adopted under notice filed as WSR 09-01-074 on December 15, 2008.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 21, Repealed 5.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 21, Repealed 5; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: February 24, 2009.

Mykel D. Gable

Assistant Director

Driver and Vehicle Services

OTS-2058.1


AMENDATORY SECTION(Amending WSR 02-02-010, filed 12/20/01, effective 1/20/02)

WAC 308-72-50901   Waiving of bond requirement.   (1) Can the department waive the requirement to maintain a fuel tax bond? Yes((.)), if the department ((may waive the bonding requirement of a licensed distributor if, upon determination by the department, the licensed distributor)) determines that the licensed distributor has sufficient financial ((instruments to extinguish)) assets to cover any Washington state fuel tax liability, including penalties and interest((, incurred while acting as a licensed distributor)).

(2) What is considered a financial ((instrument)) asset? ((For purposes of this rule, a financial instrument is either:))

(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability ((incurred by the distributor)); or

(b) ((Lawful money of the)) United States dollars, ((or)) bonds, or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.

(3) How can I qualify to have my bonding requirement waived? ((You may qualify to have your bonding requirement waived upon:))

(a) By filing a notarized statement with the department stating that your line((())s(())) of credit with your financial institution((())s(())) and your fuel supplier((())s(())) is at a sufficient amount to include product cost and state fuel taxes. You must ((indicate)) list the name of the financial institution((())s(())), the account number((())s(())) and dollar value of your line((())s(())) of credit, and the name((())s(())) of your fuel supplier((())s(())). You must authorize the department to access this information with your financial institution((())s(())) and supplier((())s(() for verification purposes)); or

(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department as security for performance under chapter 82.36 RCW; and

(c) Providing the department with satisfactory documentation((, satisfactory to the department,)) indicating that the supplier((())s(())) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line((())s(())) of credit((, if applicable)).

(4) What if the department denies my request for a waiver of the bond requirement? You can appeal this decision as provided in chapters 82.36 RCW and 308-72 WAC.

(5) What if I no longer maintain a line of credit or financial ((instrument)) asset? You must provide a surety bond to the department in the amount required by chapter 82.36 RCW, with a coverage ((commencement date)) beginning on or before the date the line of credit or financial ((instrument was extinguished)) asset became insufficient.

[Statutory Authority: RCW 82.36.435 and 82.38.260. 02-02-010, 308-72-50901, filed 12/20/01, effective 1/20/02.]


AMENDATORY SECTION(Amending WSR 00-08-032, filed 3/28/00, effective 4/28/00)

WAC 308-72-720   Dishonored checks.   (1) What will happen if my check ((becomes)) is dishonored? ((A dishonored check represents failure to pay motor vehicle fuel taxes, fees and/or penalties and interest when due, and)) The department will ((enforce such motor fuel licensing and taxing laws as are necessary)) take collection action to recover ((the unpaid taxes and fees when they become due and payable)) any amounts owing and require all subsequent payments to be made in guaranteed funds, such as cash, cashier's check, or money order.

(2) ((What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, official check, or money order.

(3))) Are there any additional fees charged for a dishonored check (((DHC)))? Yes, a handling fee ((shall be assessed by the department for each check dishonored by the financial institution)) will be charged by the department for each dishonored check.

[Statutory Authority: RCW 46.01.110, 82.36.435, 82.38.260, 82.42.040, 46.87.010(2). 00-08-032, 308-72-720, filed 3/28/00, effective 4/28/00.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-800   Definitions.   (1) "Gasoline" means finished gasoline and gasoline blendstocks as defined in Code of Federal Regulations (CFR) 48.481((-1 (e)(3))). Finished gasoline means all products (including gasohol) that are commonly or commercially known or sold as gasoline and are suitable for use as motor fuel. The product must have an octane rating of 75 or more.

(2) "Export" means to obtain motor vehicle fuel in this state for sale or distribution outside this state. To be considered an "export" and qualify for exemption from the motor vehicle fuel tax, motor vehicle fuel obtained outside the bulk transfer terminal system must be physically off-loaded in the destination state, province, or foreign country. The exporter must be licensed or registered, if required, in that state, province, or country of destination.

(3) "Motor vehicle fuel" means any product ((commonly or commercially)) sold as gasoline ((as defined in CFR 48.481-1 (e)(3))) and fuel ethanol. The blending of any product((())s(())) or chemical((())s(())) with gasoline or any other inflammable liquid and the resultant product is sold or used for the propulsion of motor vehicles ((shall)) will be considered a motor vehicle fuel subject to the provisions of chapter 82.36 RCW.

(4) (("Motor vehicle fuel supplier" means a person who is licensed as a supplier under chapter 82.36 RCW, and must hold a federal certificate of registry issued under the Internal Revenue Code authorizing the person to enter into federal tax free transactions on motor vehicle fuel in the bulk transfer-terminal system.

(5))) "Invoice" means any document, paper or electronic, evidencing the transfer of ownership of motor vehicle fuel.

(5) "Net gallons" a standard gallon unit of petroleum of 231 cubic inches at 60 degrees Fahrenheit (U.S. petroleum gallon).

(6) "Ethanol" means an anhydrous denatured aliphatic alcohol intended for gasoline blending.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-800, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-805   Payment due dates for motor vehicle fuel taxes not paid by electronic funds.   (((1))) What if ((the)) my payment due date falls on a Saturday, Sunday or state legal holiday ((and payment is by electronic funds transfer))? ((If you are paying your motor vehicle fuel tax by electronic funds transfer, you must transfer the funds by)) Payment is due on the next state business day ((immediately preceding the due date)). ((())For example, if the payment due date falls on Saturday, ((you must transfer the funds by Friday)) the payment must be postmarked by Monday.(()

(2) What if my payment is not made by electronic funds transfer? If you are not paying your motor vehicle fuel tax by electronic funds transfer, then payment is due on the next state business day. (For example, if the payment due date falls on Saturday, the payment must be postmarked by Monday.)))

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-805, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-810   Collateral requirements in lieu of surety bond((())s(())).   (1) What other forms of collateral will the department accept in lieu of a surety bond? The department will accept certificates of deposit ((of lawful money of the)) in United States dollars in any of the following forms:

(a) Automatically renewable certificate((())s(())) of deposit insured by the federal deposit insurance corporation, made in the name of the licensee or applicant for the license, payable to or assigned to the Washington state treasurer; or

(b) Certificate((())s(())) of deposit or share account issued by a savings and loan association insured by the federal savings and loan insurance corporation. Evidence of the insured account, in the form of either a certificate of deposit or passbook, must be filed with the department along with a properly executed assignment form whereby the fund on deposit is assigned to the Washington state treasurer; or

(c) Certificate((())s(())) of deposit or share account, issued by a credit union doing business in the state of Washington and insured by the Washington credit union share guaranty association. Evidence of the insured account, in the form of either a certificate of deposit or passbook, must be filed with the department along with a properly executed assignment form whereby the fund on deposit is assigned to the Washington state treasurer; or

(d) Cash deposits ((are acceptable)), however interest will not accrue.

(2) Do I earn interest on my certificates of deposit? Yes, ((the certificate and/or)) the assignment forms ((shall)) will contain the provision that interest earned will be payable to the depositor.

(3) How is an assignment canceled? Assignments may only be canceled upon written authorization of the department.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-810, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-815   Cancellation, suspension, or revocation of motor vehicle fuel license((())s(())).   (((1) Under what circumstances will my license be canceled? Pursuant to RCW 82.36.190, a license may be canceled by the department under the following circumstances:

(a) Upon written request of the licensee, the cancellation will become effective within sixty days from receipt of the written request.

(b) Upon investigation and sixty days' notice to the licensee if the department determines the licensee is no longer engaged in the sale or distribution of motor vehicle fuel for a period of six consecutive months prior to the cancellation.

(c) Upon failure to file a new surety bond or to make deposits (cash) in accordance with RCW 82.36.060, or when the surety bond issuer requests to be released or discharged.

(d) Upon failure to file new or additional surety bond or to deposit additional securities within thirty days after being requested to do so by the department.

(2) How do I request to have my license canceled? A written request for cancellation and any required tax returns up to the date of cancellation must be forwarded to the department with a remittance of any tax, penalty and interest due.

(3) Under what circumstances may my license be suspended or revoked? A license suspension or revocation is initiated by the department for cause as defined in RCW 82.36.190.

(4))) What happens when my license is canceled, suspended, or revoked? The department will notify all motor vehicle fuel ((suppliers, importers, exporters, blenders and distributors)) licensees of the change in license status.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-815, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-820   ((Tax exempt transactions.))   Sales to qualified foreign diplomatic and consular missions. (((1) When are export transactions)) Are cash sales to qualified foreign diplomatic and consular missions tax exempt? ((Exemption of the motor vehicle fuel tax may be claimed under the following circumstances:

(a) Fuel owned by the exporter and delivered by the exporter to a customer at a point outside the state by means of equipment owned and operated or controlled by the licensee.

(b) By a licensee for transportation to a destination outside the state under a bill of lading or a shipping contract that definitely establishes that the licensee claiming the export actually and, in fact, retains title to, and control over, said fuel until actual delivery to its destination out of the state of Washington.

(2) When are sales to the United States armed forces and National Guard tax exempt? A licensed supplier is authorized to remove motor vehicle fuel from the bulk transfer terminal system without the imposition of the tax when the motor vehicle fuel is delivered:

(a) To the United States armed forces or National Guard under a bill of lading for the express purpose of exportation from the state by the armed forces or National Guard.

(b) Into the fuel tanks of ships operated by the United States armed forces or National Guard and bearing armed forces or National Guard identification names or numbers.

(c) Into the storage facilities of the United States armed forces or National Guard maintained exclusively for the purpose of fueling ships.

(3) Are sales to qualified foreign diplomatic and consular missions tax exempt? Tax exempt sales of motor vehicle fuel may be made to qualified foreign diplomatic, consular missions and their qualified personnel if the diplomatic, consular missions and qualified personnel maintain tax exempt credit card accounts. Motor vehicle fuel purchased by cash is not tax exempt.

(4) What is required for a licensee to issue a credit card to qualified foreign government personnel? Application must be accompanied by Form DSP-99A, issued by the Office of Foreign Missions, United States Department of State, and approved by that office.)) No, only credit card purchases are exempt.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-820, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-835   Tax exempt losses.   (1) What is ((considered a tax exempt)) acceptable proof of loss for a credit or refund of fuel tax paid? ((Credit for or a refund of the motor vehicle fuel tax paid may be taken when the licensee or the common or contract carrier furnishes acceptable proof of the exact quantity of fuel lost if documents in support of the loss are submitted to the department for approval as provided in RCW 82.36.370.

(2) What is acceptable proof of loss? Acceptable proof of loss shall consist of:))

(a) A notarized affidavit by a person having actual knowledge of the circumstances of the loss, explaining the origin and destination of the shipment, the circumstances surrounding the quantity of fuel lost, fuel salvaged, disposition of the salvaged fuel, and procedure((())s(())) used in the determination of the quantity of fuel lost; or

(b) A signed statement by a federal, state, local or provincial official who has authority to investigate ((and/or deal with)) fuel losses; ((or witness to the loss;)) and

(c) A bill of lading or other shipping document((())s(())); and

(d) A statement by the licensee establishing ownership of the fuel at time of loss.

(((3))) (2) Are deductions for losses from bulk storage allowed? Yes, motor vehicle fuel that has been proven lost or destroyed, prior to distribution from a licensee's bulk storage facility outside of the bulk transfer terminal system((, is allowed as a deduction as provided in RCW 82.36.370)) may be considered a tax exempt loss.

(((4))) (3) How long ((shall)) do I retain my evidence substantiating my loss? ((Documentary evidence substantiating losses shall be retained by the licensee for)) Five years from date of claim.

(((5))) (4) May I claim a deduction for ((unproved losses)) stolen fuel? No((, unproved losses will be considered as distribution and subject to fuel tax.

(6) Am I liable for fuel taxes when one of my employees or agents causes a loss of fuel? Yes, charges for losses made by employees or agents of the licensee who fail to satisfactorily account for fuel shall be invoiced inclusive of the fuel tax. Other losses shall be accounted for and supported by proof)).

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-835, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-840   Delinquent account notification process.   (1) What ((steps must be taken when a licensed motor vehicle fuel distributor does not pay a licensed motor vehicle fuel supplier the motor vehicle fuel tax when due)) happens when a licensed distributor does not pay fuel taxes to the licensed supplier on time?

(((a) When a licensed distributor does not pay a licensed supplier the motor vehicle fuel taxes that are due, the supplier must notify the department no later than twenty calendar days from the date the fuel tax was due to the supplier. If that twentieth day falls on a Saturday, Sunday, or legal holiday, the supplier must notify the department on the next business day.

(b) The supplier must complete the form that has been developed by the department for this purpose or timely provide written notification to the department. Receipt of written notification constitutes evidence that the distributor has failed to pay the motor vehicle fuel taxes owed.)) The supplier must notify the department in writing no later than twenty calendar days from the date the fuel tax was due. If the twentieth day falls on a Saturday, Sunday, or legal holiday, the supplier must notify the department on the next business day.

(2) What ((action)) will the department ((take)) do when notified ((by the supplier)) of the distributor's failure to pay? ((The department will)) Suspend the distributor's license ((for nonpayment of motor vehicle fuel tax due the supplier)) and notify all suppliers ((of the suspension in the following ways:

(a) Posting notification of the suspension on the department's web site;

(b) Transmission of the notification via electronic mail or facsimile; and

(c) Mailing of the notification via U.S. mail)).

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-840, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-850   Records.   What motor vehicle fuel records must be kept? Every person licensed or required to be licensed ((shall)) must maintain a complete monthly stock summary of the gallons of motor vehicle fuel reflecting inventories, receipts, sales, use, other distribution, and loss or gain. The stock summary ((shall)) must be supported by:

(1) Physical inventories of bulk storage plants taken at the close of each calendar month.

(2) Meter readings taken at the close of each calendar month for pumps through which fuel is dispensed.

(3) A record of fuel receipts ((together with)), invoices, bills of lading, transfer documents, yield reports and other documents relative to the acquisition of fuel.

(4) A record of fuel disbursements ((together with)), invoices, bills of lading and other documents relative to the disbursements of fuel.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-850, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-860   Investigatory power.   What ((investigatory)) power((s)) does the department have for investigations? For the purpose of any investigation or proceeding under this chapter ((and chapter 82.36 RCW)), the director or any designated officer may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require ((the production of)) any books, papers, correspondence, memoranda, agreements, or other documents or records which the director deems relevant or material to the inquiry to be produced for inspection and copying.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-860, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-865   Invoices issued by licensees.   (1) When is an invoice issued? Every licensee ((shall)) must issue an invoice at the time of sale. If an electronic invoice is issued, a paper copy of the invoice ((or other documentation containing)) is required ((information must be produced if required by the department or)) to support a refund claim.

(2) What information ((must appear)) is required on ((each)) an invoice? ((Each invoice must include the following information:))

(a) The name and address of the seller;

(b) The name, address, and motor vehicle fuel tax license number, if applicable, of the purchaser;

(c) The date of delivery ((()), month, day, and year(()));

(d) The location of the point of shipment. Alphanumeric codes are allowed if the definition((s of the alphanumeric codes)) keys are provided to the department;

(e) The physical address of the fuel delivery or exchange if different than the purchaser address, including the name of the state, Canadian Province, or foreign country. Alphanumeric codes are allowed if the definition((s of the alphanumeric codes)) keys are provided to the department;

(f) In the case of a delivery into a federally recognized Indian reservation or onto Indian country, the invoice must identify the state, U.S. possession, or Canadian Province in which the delivery took place;

(g) Name of carrier transporting fuel;

(((g))) (h) Name of product sold;

(((h))) (i) The number of U.S. gallons of product sold (((must indicate)) in net or gross gallons(()));

(((i))) (j) The price per gallon and total amount charged; and

(((j))) (k) A statement on the invoice indicating ((whether)) if the fuel has been sold without the Washington state fuel tax((;

(k) In the case of a delivery onto a federally recognized Indian reservation or onto Indian country, the invoice must identify the state within the contiguous United States, Hawaii, Alaska, District of Columbia, U.S. possession, or Canadian Province in which the delivery took place)).

(3) What happens if a purchaser's invoice is lost or destroyed? ((If an invoice is lost or destroyed)) The seller ((shall)) can issue a duplicate or copy containing all information ((that appeared)) on the original invoice, if requested by the purchaser. The copies ((shall)) must be plainly marked "copy" or "duplicate."

(4) What happens if an incorrect invoice is issued to the purchaser? The seller must issue a corrected invoice to the purchaser. The invoice must clearly indicate that it is a corrected invoice and reference the original invoice.

(((5) What documentation does a licensed supplier, importer or blender need in order to support taxable motor vehicle fuel consumed for their own use? Fuel used in motor vehicles or for other taxable purposes by a licensed supplier, importer or blender shall be supported by records covering the total fuel used during the reporting period.

(6) What documentation does a distributor need in order to claim a refund for nontaxable use of motor vehicle fuel? If motor vehicle fuel is used for a purpose subject to tax refund, the distributor must have supporting invoices or records indicating the use of the motor vehicle fuel and the type(s) of equipment it is used in.))

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-865, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-870   Minimum ((tax)) payment((/)) or refund.   (1) What is the minimum ((tax)) payment or refund for licensed accounts? ((Each tax return that declares a tax liability of ten dollars or less need not make remittance; conversely, a refund of)) Ten dollars or less will not be ((issued)) owed or refunded. ((A computation error on the tax return which results in an additional tax liability in the amount of ten dollars or less will be accepted without further collection action.))

(2) What is the minimum refund for unlicensed refund claims? Claims for less than twenty dollars will not be refunded.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-870, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-880   Filing of refund claims for nonlicensees.   (1) How do I apply for a refund? ((Any person claiming a refund of the motor vehicle fuel tax must make application to the department and be issued a refund permit number.)) Contact the department for a refund permit application and instructions.

(2) ((When can I file a refund claim? A refund claim may be filed at any time not to exceed a thirteen-month time limit from the date)) What time period can I file for a refund? You must file within thirteen months of the fuel purchase date. ((If you claim a refund for fuel purchased in any month of a claimed period, you may not claim additional purchases for that month on another claim.)) The department will use the postmark date to determine the ((eligibility of the claim)) thirteen-month time frame. We will not accept multiple refund claims for the same month. For example, if you have made a claim for purchases in June you cannot claim additional purchases for June on another claim form.

(3) What do I need to send ((in my invoices)) with ((the)) my refund claim ((request))? ((If your refund claim request is one hundred dollars or less, you do not have to send your)) You must send in your fuel purchase invoices ((with your refund claim unless required by the department. If your refund claim request is more than one hundred dollars, purchase invoices are required. If electronic invoices were issued to the claimant, paper copies of the invoices or other documentation containing required information must be submitted with the refund claim)), schedules, and other documents listed on the refund claim form. If electronic invoices were issued, you must provide paper copies.

(4) How ((shall)) do I account for my inventory ((on my refund claim form))? Any fuel on hand ((()), by physical measurement(())), at the end of the claim period should be ((indicated on the claim as ending inventory and should be)) reported as ((a beginning inventory on the next refund claim form. Credit for the inventory will be allowed on the next claim if it is filed within thirteen months from the filing date of the claim that established the inventory. All invoices for the total fuel purchased must be submitted with each claim unless the amount of the claim is one hundred dollars or less)) ending inventory. This figure should be reported as the beginning inventory on your next claim form.

(5) ((As)) What does a licensed distributor ((do I need to)) send ((in supporting summary schedules and invoices)) with ((my)) their refund claim ((request))? ((Yes.)) Summary schedules must be provided ((by the distributor. Invoices may be requested by the department)) and the department may request invoices.

(6) ((Who may)) The following can sign a refund claim form((? The following persons may sign a refund claim form)):

(a) Individuals - permit holder;

(b) Partnership - any one of the partners;

(c) Business firm or corporation - owner, corporate officer or other authorized agent.

(7) Can invoices ((be in)) have a different name than what is on the claim form? No((, invoices made out in other names will not be accepted)).

(8) Can I request that my refund be assigned to another person? Yes, if we receive a letter ((of assignment is attached, signed by the person to)) stating whom you would like the ((invoice was issued, designating the payee)) claim assigned to.

(9) How long will it take until I receive my refund? ((Properly completed refund claims will be processed and mailed)) Within thirty business days ((of date of receipt)) after we receive a properly completed claim.

(10) How long do I maintain my refund records? Keep them for five years after submitting your claim.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-880, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-890   Invoice requirements for refunds to nonlicensees.   (1) What ((are the)) is a valid invoice ((requirements))? ((The seller of motor vehicle fuel is required to issue to each purchaser)) A separate invoice((s)) must be issued for each fuel purchase ((of fuel)). ((However,)) A single invoice ((covering)) may list multiple deliveries of fuel purchases made during a ((period of time not to exceed one calendar month may constitute a separate invoice as required by this subsection: Provided, That each delivery is individually listed on the invoice or on an accompanying statement in accordance with the requirements of this subsection for single deliveries)) calendar month.

(2) ((What)) The following information must be included on the invoice((? Each invoice must contain the following information)):

(a) The name and address of the seller;

(b) ((Kind or)) The type of fuel and number of gallons purchased;

(c) Complete date of sale ((())including month, day, and year(()));

(d) Price per gallon; and

(e) Total amount of sale.

(3) ((Will)) The department will not accept invoices with altered, corrected or erased information((? Invoices that indicate alterations, corrections or erasures shall be voided and will not be accepted. Any person who alters any part of an invoice that will tend to give the claimant an illegal gain may have the entire claim invalidated and the director may suspend any further claims for refund for a period of one year. If an electronic invoice was issued, then a paper copy of the electronic invoice or other documentation containing required information must be submitted)).

(4) What happens if ((an invoice is lost or destroyed)) the seller issues an electronic invoice? ((If an invoice is lost or destroyed, the seller may issue a duplicate or copy containing the invoice number, date of sale, gallonage, price and amount, and any information that appeared on the first invoice. The copies shall be plainly marked "copy" or "duplicate.")) A paper copy must be submitted with your refund claim.

(5) What happens if I ((issued)) get an incorrect invoice ((to the purchaser))? The seller((s of fuel shall)) must issue a ((corrected)) new invoice ((to the purchaser)) marked "correction" and reference the original.

((The invoice must clearly indicate that it is a corrected invoice and reference the original invoice. Only one invoice shall be issued for any one delivery.))

(6) What happens if I lose or destroy my invoice? The seller may issue a copy. The copies must be plainly marked "copy" or "duplicate."

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-890, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-895   Refund records.   (((1))) What records ((does the department require to be retained by each claimant)) do I need to keep to claim a refund of fuel taxes? ((Each claimant shall retain records that reflect all motor vehicle fuel receipts, the gallons of fuel used in each type of equipment (both refundable and nonrefundable), other uses, loss and gain, and inventory on hand. The records must indicate the date of receipt or disbursements and identify the equipment into which the fuel is delivered or the purpose for which the fuel is used.

Failure of the claimant to maintain the required records or to accede to a demand for examination of them constitutes a waiver of all rights to the refund. If the claimant maintains electronic invoices, paper copies of these invoices or other documentation containing required information must be produced, upon demand of the department.

(2) What records must be maintained to support a refund claim for each of the following uses?

(a) Use of fuel from bulk storage. Fuel purchased and delivered into bulk storage for taxable and nontaxable use must be accounted for by detail withdrawal records to show the manner in which used.

(b) Use of fuel from other than bulk storage. Fuel purchased in small containers, ten gallons or less, for nonhighway use should be identified by the purchaser on the purchase invoice, i.e., boats, tractors, power saws, etc.))

All fuel receipts;

The gallons of fuel used in each piece of equipment, both refundable and nonrefundable;

Fuel inventory in bulk storage;

Detailed fuel records for all withdrawals from bulk storage;

Fuel purchased in small containers (ten gallon or less) for nonhighway use must show the type of equipment being used; i.e., boats, tractors, power saws, etc.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-895, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-905   Power take-off (PTO) use.   (1) What is ((power take-off)) PTO use? It is fuel used in a motor vehicle engine to operate auxiliary equipment ((provided that)). The fuel ((used is)) must be supplied from the propulsion tank of the motor vehicle.

(2) What is not considered auxiliary equipment? Equipment ((that is considered an integral part of the operation of the vehicle,)) such as air conditioning, power steering, generator, etc., that is considered an integral part of the operation of the vehicle.

(3) What formula does the department use in determining ((power take-off)) PTO usage ((for fuel and heating oil pumping))?

(((a) For gasoline used in pumping fuel oil or heating oil by means of a power take-off unit on a delivery truck at the rate of three-fourths of one gallon for each one thousand gallons of fuel or heating oil delivered. Fuel oil delivery truck operators must maintain records which show the total gallons of fuel oil or heating oil pumped by each vehicle for which refund is claimed together with supporting documentation.

(b) For gasoline used in operating a power take-off unit on any of the vehicles listed herein when direct measurement is not feasible,)) The tax exemption is calculated ((at the rate specified)) as a percentage of the total Washington taxable fuel ((used by the vehicles)):


Cement mixer 25%
Fire trucks (private) 25%
Mobile cranes 25%
Garbage trucks (with load compactor) 25%
Sewer cleaning truck/jet vactor 25%
Super suckers 25%
Line truck with digger/derrick or aerial lift 20%
Log truck with self loader 20%
Refrigeration trucks 20%
Sweeper trucks (must be motor vehicle) 20%
Boom truck/block boom 15%
Bulk feed truck 15%
Dump trailers 15%
Dump trucks 15%
Hot asphalt distribution truck 15%
Leaf truck 15%
Lime spreader 15%
Pneumatic tank truck 15%
Salt spreader on dump truck 15%
Seeder truck 15%
Semiwrecker 15%
Service truck with jack hammer/drill 15%
Snow plow 15%
Spray truck 15%
Tank transport 15%
Tank trucks 15%
Truck with PTO hydraulic winch 15%
Wrecker 15%
Car carrier with hydraulic winch 10%
Carpet cleaning van 10%
Others 7.5%

(4) What if my fuel consumption is greater than the percentages indicated above? If ((a claimant)) you can provide satisfactory documentation and records to show that the fuel consumed by the ((power take-off)) PTO is greater than the percentages indicated, the department may grant the higher percentage on a case-by-case basis.

(5) What documents must accompany the refund claims? All claims must be accompanied by valid purchase invoices to cover the total gallons of gasoline purchased, except that invoices for gasoline used in fuel oil delivery trucks or when measured by a metering device need only be equal to or greater than the gallons claimed as refundable. A support schedule for Washington ((power take-off)) PTO and power pumping credits ((shall)) must accompany each claim for refund.

(6) What records do I need to keep? All individual vehicle mileage and fuel records that reflect total mileage, total fuel, Washington taxable mileage, and Washington taxable fuel by vehicle.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-905, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-910   On-board computers or recording devices.   Can I use on-board computers or recording devices to record mileage? Yes, ((the use of on board computers or recording devices for the production of mileage records required by the International Fuel Tax Agreement (IFTA) shall be governed by the requirements or procedures adopted by the International Fuel Tax Agreement (IFTA))) with prior approval by the department.

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-910, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-915   Special rules and requirements for fuel tax refunds.   (((1) Can I claim a refund for motor vehicle fuel used in my recreational snowmobile? No. Motor vehicle fuel tax refunds are prohibited by RCW 46.10.160(2).

(2) Can I claim a refund for motor vehicle fuel used in my unlicensed recreational off road vehicles, all terrain vehicles and snowmobiles? No, any recreational use of off road vehicles, all terrain vehicles and snowmobiles, although considered a nonhighway use of fuel, shall not be claimed for refund of the motor vehicle fuel tax paid.

(3))) Can I claim a refund for motor vehicle fuel used in my unlicensed off road vehicles, all terrain vehicles and snowmobiles? Yes, only if the motor vehicle fuel is used for nonrecreational purposes such as farming, logging, and construction. Off-road vehicles, all terrain vehicles and snowmobiles are defined in RCW 46.09.020, 46.10.010 (3) and (2) ((respectively)).

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-915, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-920   Use tax for refunds.   (1) ((Will)) Is use tax ((be)) deducted from my refund claim? Yes, ((use tax may be deducted from your fuel tax refund amount as imposed by)) unless you are exempt from the use tax in chapter 82.12 RCW.

(2) How is use tax computed? ((The claimant may)) You can choose to:

Calculate the use tax amount using the actual use tax rate((())s(())) and actual cost per gallon; or

Have the department ((will)) calculate the use tax amount using an average use tax rate and ((average)) price per gallon.

Either method chosen ((by the claimant)) must be used for each refund claim submitted during ((a)) the calendar year, unless there has been a change in the department's estimated average fuel cost during that period. ((If computed by the department, the department will use an estimate of the statewide average fuel cost and an estimated use tax rate. The statewide average cost and use tax rate will be reviewed every six months and adjusted as necessary. If there is any dispute over the method of calculation, the taxpayer will be required to use actual cost of the fuel and use tax rate(s).))

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-920, filed 11/1/01, effective 12/2/01.]


AMENDATORY SECTION(Amending WSR 01-22-072, filed 11/1/01, effective 12/2/01)

WAC 308-72-925   Mitigation of penalties and interest.   (1) ((Under)) What ((circumstances may a)) fee, penalty ((and/))or interest may be mitigated or reduced? The department((, in its discretion,)) may mitigate((, extinguish and/or adjust)) fees, 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, assessments, and/or lack of complete records)) from:

Late or missing fuel tax returns;

Unpaid or underpaid taxes;

Incomplete records to support reported fuel usage; or

Assessments.

(2) How will the department ((determine whether fees, penalties and/or interest should be mitigated)) make the decision? The department may review records, account history, or other information ((in arriving at its decision to mitigate)).

[Statutory Authority: RCW 82.36.435. 01-22-072, 308-72-925, filed 11/1/01, effective 12/2/01.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 308-72-830 Tax exempt sales.
WAC 308-72-845 Refund for bad debt loss (other than a motor fuel supplier).
WAC 308-72-855 IFTA records.
WAC 308-72-885 Interest assessment on refund claims.
WAC 308-72-900 Refunds to dealer delivering fuel exclusively for marine use.

Washington State Code Reviser's Office