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AN ACT RELATING TO DIESEL FUEL TAX
Sec. 1. 23 V.S.A. § 3002(3) and (4) are amended to read:
(3) "Distributor" means any person who sells or delivers fuel into bulk
storage tanks of a dealer or licensed user;
(4) "Fuel" means clear diesel fuel that has not been dyed in accordance
with 26 U.S.C. § 4082 or section 211(I) of the Clean Air Act and any blend of
undyed diesel and other fuel used or suitable for use for the generation of
power to propel motor vehicles;
Sec. 2. 23 V.S.A. § 3003 is amended to read:
§ 3003. IMPOSITION OF TAX; EXCEPTIONS
(a) A tax of 16 21 cents per gallon and a fee of one cent per gallon is
imposed on each gallon of fuel established pursuant to the provisions of
10 V.S.A. § 1942:
(1) sold or delivered by a distributor except when such sale or delivery
is to a dealer who also sells fuel as home heating oil or to a user who has been
certified exempt from the tax by the commissioner; or
(2) sold or delivered by a dealer who also sells fuel as home heating oil
or is a user who has been certified exempt by the commissioner; or
(3) used by a user.
(b) Collection of the tax and its payment to the state shall be as follows:
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(1) the distributor shall collect the tax from a dealer or user on delivery
of fuel into the dealer’s or user’s bulk tanks unless the dealer also sells fuel as
home heating oil or is a user who has been certified exempt from the tax by the
commissioner in which cases no tax will be collected by the distributor. The
tax shall attach at the time of delivery into the bulk tank. When a distributor
collects a tax from a dealer, he or user, the distributor shall pay the same to the
commissioner when he files with the monthly report required by section 3014
of this title;
(2) the dealer who also sells fuel as home heating oil or is a user who
has been certified exempt by the commissioner shall collect the tax when he
sells or delivers the fuel from the pump, or from any other method of delivery
except from a separate pump for off-road use and home heating oil sales under
the provisions of section 3027 of this title and except from a home heating oil
delivery truck which has been registered pursuant to section 367 of this title,
and shall pay the tax to the commissioner as provided by section 3004 of this
title;
(3) a user who uses fuel shall pay the tax to the commissioner as
provided in section 3015 of this title. The tax shall attach at the time of the
consumption of such fuel in the propulsion of a motor vehicle upon the
highways of the state;
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(4) except as otherwise provided, all other users shall file the report
required by section 3014 and pay the tax as required by section 3015 of this
title.
(c) A tax of three cents per gallon is imposed on each gallon of railroad
fuel used in the state.
(d) For users, the following uses shall be exempt from taxation under this
chapter and be entitled to a credit for any tax paid for such uses under section
3020 of this title:
(1) uses, the taxation of which would be precluded by the laws and
Constitution of the United States and this state;
(2) uses for agricultural purposes not conducted on the highways of the
state;
(3) uses by any state, municipal, school district, fire district or other
governmentally owned vehicles for official purposes;
(4) uses by any vehicle off the highways of the state; and
(5) uses by motor buses registered in this state; and uses by motor buses
registered in this state; and
(6)(6) uses by any vehicle registered as a farm truck under section
367(f) of this title.
(e) A distributor may use as the measure of the tax so levied and assessed
the gross quantity of diesel fuel purchased, imported, produced, refined,
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manufactured and compounded by the distributor, less one percent for
shrinkage, loss by evaporation or otherwise, instead of the quantity sold,
distributed or used.
Sec. 3. 23 V.S.A. § 3007 is amended to read:
§ 3007. DIESEL FUEL USER'S LICENSE
(a) In addition to any other provision of law relating to registration of
motor vehicles, or fees paid therefore, a person owning or operating upon the
highways of the state a motor truck, which is registered in the state, using fuel
as defined in section 3002 of this title, shall, for each motor truck to be so
operated, apply to the commissioner of motor vehicles for a diesel fuel user
license, which shall be renewed at the time of renewal of the truck's
registration. Application shall be made upon a form prescribed by such
commissioner and shall set forth such information as the commissioner may
require. Applications filed at the time of the initial registration or renewal of a
registration shall be accompanied by a $6.50 annual license fee for each motor
truck listed in the application except that no fee shall be required for motor
trucks with a gross weight of less than 18,000 26,001 pounds. However, any
license issued under this section prior to July 1, 1990 shall remain in effect for
the term of its issuance.
(b) In addition to any other provisions of law relating to registration of
motor vehicles, or fees paid for registration, a person owning or operating upon
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the highways of the state a motor truck using fuel, which is not base registered
in this state, using fuel as defined in section 3002 of this title shall for each
such motor truck apply to the commissioner for a diesel fuel user license for
each motor truck to be so operated. Application shall be made upon a form
prescribed by the commissioner and shall set forth such information as he or
she the commissioner may require. Except for motor trucks with a gross
weight of less than 18,000 26,001 pounds, and vehicles licensed under section
415 of this title, the application for issuance of initial and renewal licenses
shall be accompanied by a $6.50 license fee for each motor truck listed in the
application, the fee being for the purpose of paying the cost of the license, cab
card and tag, plate or sticker. The commissioner shall issue a license, cab card
and an identification tag, plate or sticker for each motor truck which tag, plate
or sticker shall be of the size and design and contain such information as the
commissioner shall prescribe. Except as otherwise provided any license, cab
card and tag, plate or sticker shall become void on each January 1 thereafter or,
when determined by the commissioner, 12 months from the first day of the
month of issue. Licenses and cab cards shall be carried in the motor vehicle
and the tag, plate or sticker shall be affixed to the motor vehicle and at all
times be visible and legible. For emergency purposes, the commissioner may
by telegram, identifying the motor vehicle, authorize its operation without the
attachment of a tag, plate or sticker for a period not to exceed 21 days from the
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date of issue of the license. The telegram must be kept with the vehicle while
being so operated.
(c) This section shall not apply to users' vehicles exempt from reporting
requirements under section 3014 of this title or to users' vehicles exempt from
taxation under section 3003(d)(3) and (5) of this title, or to users' vehicles that
are being operated under the provisions of sections 463 or 516 of this title.
(d) Upon approval of the commissioner, one way rental vehicles with a
gross vehicle weight of 26,000 pounds or less are exempt from carrying the
diesel fuel user's license in the motor vehicle and are exempt from displaying
the identification tag, plate or sticker on or in the motor vehicle.
Sec. 4. 23 V.S.A. § 3014 is amended to read:
§ 3014. REPORTS; EXCEPTIONS
(a) Every distributor or dealer, on or before the last day of each month,
shall file with the commissioner on forms prescribed by him or her a report for
the preceding month which shall include the number of gallons of fuel sold or
delivered. A distributor's report shall also include the identity of the person to
whom the fuel was sold or delivered, the amount of the tax collected and by
whom, and the monthly total of fuel sold or delivered. The report shall be filed
even though no fuel was sold or delivered.
(b) Every licensed user shall file a report with the commissioner on forms
prescribed or in a form approved by him or her, which shall include the
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number of gallons of fuel used in Vermont by motor vehicles owned or
operated by him or her. In the alternative, the commissioner may permit a
licensed user to file a report on forms prescribed or in a form approved by him
or her which shall include all bulk deliveries of fuel received by the user on
which the tax was not paid to the distributor. All users shall file on a quarterly
basis on or before April 30 for the calendar quarter ending March 31, on or
before July 31 for the calendar quarter ending June 30, on or before October 31
for the calendar quarter ending September 30, and on or before January 31 for
the calendar quarter ending December 31. The report shall be filed even
though no motor fuel was used or delivered. The commissioner may allow a
user to file more than one report but no more than three reports for a single
reporting period based upon the functional categories of said user's motor
vehicles.
(c) Any user whose sole use of fuel is for the propulsion of a pleasure car
or motor truck registered for not more than 10,000 26,001 pounds is exempt
from filing the report provided that all fuel obtained in this state for use is
purchased from a dealer who collects the tax from the user when delivering the
fuel into the fuel tank of the user's vehicle. This subsection shall apply to
vehicles registered at the pleasure car rate and to trucks registered for not more
than 10,000 pounds, but does not include a motor vehicle used for the
transportation of persons for hire or for compensation when such vehicle is
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designed to carry eight or more passengers including the operator.
Notwithstanding that a user's sole use of fuel is in a pleasure car vehicle or
truck registered for not more than 10,000 pounds, he or she shall obtain a user's
license and file a fuel report in form approved by the commissioner if he or she
is using fuel from bulk storage tanks on which the tax has not been paid at the
time of purchase or delivery.
(d) The commissioner may exempt a user from the quarterly report
requirement:
(1) if the user holds a valid license and files a certification that he or she
has no fuel storage facilities in use, purchases all fuel used by him or her from
dealers and pays the tax on the fuel to the dealer. Such users shall retain
records of the volume of the fuel purchased and the identity of the dealer from
whom the fuel was purchased. This exemption may remain in effect until a
change in any condition of the exemption occurs.
(2) if the user holds a valid license and elects to file annually a
certificate estimating his or her tax liability under this chapter for the ensuing
year to be $100.00 or less, accompanied by a fee of $10.00. Such users shall
retain records of the volume of fuel used and shall pay any amount of tax owed
at the end of the tax year.
(e) If the commissioner deems it necessary in order to insure payment of
the tax, or to facilitate the administration of this chapter, he the commissioner
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may require reports and payment of tax to be made for other than and in
addition to quarterly periods. A user may apply to the commissioner for
approval to file reports and pay taxes on a more frequent basis.
(f) Where a user operates in more than one state, he may make reports by
operating division or divisions involved in lieu of reporting on overall
operations. The commissioner may grant an extension of time not to exceed
30 days for filing reports and tax remittances on written request made before
the delinquent date or within the period for which an extension exists, provided
that interest at the rate of one and one-half percent per month shall be payable
from the due date until paid. Reports shall not be under oath but shall contain
a declaration that it is made under the penalties of perjury.
(g)(e) The commissioner may exempt a dealer from the monthly report
requirement if the dealer holds a valid license and annually certifies that he the
dealer purchases all fuel sold or delivered from a licensed distributor and pays
the tax on such fuel to the distributor. A dealer so exempted shall retain and
make available for inspection by the commissioner or his designated agents
such records as may be required to substantiate his the certification including
but not limited to pump meter readings and delivery invoices.
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Sec. 5. 23 V.S.A. § 3015 is amended to read:
§ 3015. COMPUTATION AND PAYMENT OF TAX
Each report required under section 3014 of this title from licensed
distributors, dealers who also sell fuel as home heating oil or users who have
been certified exempt from the tax by the commissioner, and users shall be
accompanied by a remittance payable to the department of motor vehicles for
the amount of tax due which shall be computed in the following manner:
(1) The distributor's tax shall be determined by multiplying the number
of gallons of fuel sold or delivered into the bulk tanks of dealers who do not
sell fuel as a home heating oil or are not users who have been certified exempt
from the tax by the commissioner or users by the rate per gallon stated in
section 3003 of this title.
(2) The tax of a dealer who also sells fuel as home heating oil or is a
user who has been certified exempt from the tax by the commissioner shall be
determined by multiplying the number of gallons of fuel sold or delivered from
the pump by the rate per gallon stated in section 3003.
(3) Except as provided in subdivision (9) of section 3002 of this title, the
user's tax shall be determined by multiplying the number of gallons of fuels
used in Vermont in motor vehicles operated by him or her the user at the rate
per gallon stated in section 3003 for vehicles of less than 10,000 pounds, and at
the rate of 25 cents per gallon for vehicles weighing 10,000 or registered for
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26,001 pounds or more. The taxable gallonage shall be computed on the basis
of miles travelled within the state as compared to total miles travelled within
and without the state, with the actual method of computation prescribed by the
commissioner. The commissioner may allow mileage to be reported on an
average basis rather than by actual odometer readings. Where operations in
more than one state are involved, the licensee may compute the taxable
gallonage in the prescribed manner based on one or more operating divisions
involved in lieu of reporting and computing the taxable gallonage on overall
operations A distributor may use as the measure of the tax so levied and
assessed the gross quantity of fuel purchased, imported, produced, refined,
manufactured and compounded by the distributor, less one percent for
shrinkage, loss by evaporation or otherwise, instead of the quantity sold,
distributed or used. From this amount of tax due, there shall be deducted the
tax on fuel purchased in this state on which the tax has been previously paid by
the user, provided the tax-paid purchases are supported by copies of the sales
invoices showing the amount of tax paid. Such copies shall be retained by the
taxpayer for a period of not less than three years and shall be available for
inspection by the commissioner or his or her designated agents. If the
computation shows additional tax to be due, it shall be remitted with the report
filed under section 3014 of this title.
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(4)(3) If a remittance to cover payment of taxes due as shown by a
report required by this chapter is sent through the United States mail properly
addressed to the department of motor vehicles, it shall be deemed received on
the date shown by the postmark on the envelope containing the report only for
purposes of avoiding penalty and interest. In the event a mailing date is
affixed to the envelope by a machine owned or under the control of the person
submitting the report, and the United States post office has corrected or
changed the date stamped thereon by causing the official United States post
office postmark to also be imprinted on the envelope, the date shown by the
official post office postmark shall be the accepted date if different from the
original postmark.
(5)(4) All taxes, interest, user license fees and penalties collected by the
department of motor vehicles under this chapter shall be forthwith paid to the
state treasurer and credited to the transportation fund.
(6) The tax of a licensed user who has been permitted to report bulk
deliveries of fuel shall be determined by multiplying the number of gallons of
fuel delivered by the rate per gallon stated in section 3003 of this title.
(7)(5) Notwithstanding subdivision (5)(4) of this section, the one cent
per gallon fee imposed by this chapter shall be deposited into the petroleum
cleanup fund established by 10 V.S.A. § 1941. These fees shall be deemed the
petroleum distributor licensing fee established by 10 V.S.A. § 1942.
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Sec. 6. 23 V.S.A. § 3016(a) is amended to read:
(a) If the commissioner is not satisfied that the report filed or the amount of
tax paid by a taxpayer is accurate, after investigating and finding such
inaccuracy, he or she may make an additional assessment of taxes due from the
taxpayer based upon his or her investigation. In estimating the tax due from a
licensed user, fuel consumption shall be computed at the rate of 10 miles per
gallon for vehicles registered up to and including 10,000 pounds and at four
miles per gallon for all vehicles registered over 10,000 pounds for any
unreported Vermont mileage in excess of four percent of the operator's total
Vermont mileage. Any tax assessed for mileage up to four percent of the
operator's total Vermont mileage shall be assessed based on the operator's fuel
consumption average for his or her entire fleet. A penalty equal to ten percent
and interest at the rate of one and one-half percent per month shall be payable
on the additional assessment, with interest computed from the date the tax
payment was due. The commissioner shall give notice by mail to the taxpayer
of the additional assessment, penalty and interest and shall designate the error
or reason for the assessment. Payment shall be due within 30 days of the date
of mailing the notice. For cause, the commissioner may remit all or any part of
the penalty.
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Sec. 7. 23 V.S.A. § 3020(a) is amended to read:
(a) A person who purchased fuel with within this state from a dealer or
distributor upon which he or she paid the tax at the time of purchase, or a
person exempt from the payment of the tax under section 3003(d) of this title
and who purchased fuel within this state upon which he or she paid tax at the
time of purchase shall be entitled to a credit or refund equal to the amount of
tax per gallon in effect when the fuel was purchased. When the amount of the
credit to which any person is entitled for any reporting period exceeds the
amount of his or her tax for the same period, the excess shall be allowed as a
credit against the tax for which the person otherwise would be liable for the
next succeeding reporting period. However, any credits to be calculated shall
be applied against any outstanding assessments due with the balance to be
credited against the tax liability for the next succeeding reporting period. If
requested, he or she shall be entitled to a refund of any excess tax paid. When
the excess tax paid is $25.00 or greater, a refund shall be made without a
request being required. Credit or refunds for tax paid purchases must be
claimed on either the report covering the reporting period in which the
purchase was made or on the report filed for any of the next 11 following
reporting periods, but in no case may credits or refunds be claimed more than
33 months following the due date of the report covering the reporting period in
which the purchase was made.
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Sec. 8. 23 V.S.A. § 3025 is amended to read:
§ 3025. RECORDS REQUIRED
(a) The user of a motor truck with a gross weight or registered weight of
18,000 26,001 pounds or over more shall maintain a daily record of miles
travelled both within and without the state of Vermont.
(b) Such records shall be retained by the user for a period of not less than
three four years and shall be available for inspection by the commissioner, his
or designated agents or enforcement officers.
Sec. 9. 23 V.S.A. § 3027 is amended to read:
§ 3027. HOME HEATING OIL; OFF-ROAD USE; SALES
(a) A dealer may sell diesel fuel for use as home heating oil, for use by
agricultural users exempt under section 3003(d)(2) of this title and for use by
off-road users exempt under section 3003(d)(4) from a pump on the premises
of the dealer on which no tax shall be imposed under this chapter nor collected
from the purchaser by the dealer under section 3003(b). This exemption shall
apply only if the fuel:
(1) is not pumped into a motor vehicle fuel tank;
(2) is delivered by a pump or other delivery system from storage which
is separate from that used to deliver fuel into fuel tanks of motor vehicles and
is plainly marked "Not For Road Use"; and
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(3) the dealer indicates on any bill of sale provided to the purchaser, and
on all records maintained by the dealer, that no tax was collected on such sale.
(b) A dealer who sells diesel fuel on which no tax is imposed pursuant to
this section shall file a distributor's report monthly as required by section
3014(a) of this title for all such fuel sold. The distributor's report shall include
the identity of the person to whom the fuel was sold and the amount of fuel
sold. A report shall be filed indicating when no fuel was sold.
(c) In addition to any other penalty imposed for violation of this chapter, a
civil fine of $1,000.00 shall be imposed:
(1) upon a dealer for each instance in which the dealer delivers fuel from
the separate pump of a delivery system required for exemption under
subsection (a) of this section into the fuel tank of a motor vehicle; and
(2) upon a purchaser or user for each instance in which the purchaser or
user uses untaxed fuel to propel a motor vehicle upon the highways of the
state.
Sec. 10. 23 V.S.A. § 382 is added to read:
§ 382. DIESEL-POWERED PLEASURE CARS
Notwithstanding any other provision of law, the annual registration fee for a
pleasure car or tractor, truck-tractor or motor truck up to 6,000 pounds
powered by fuel as defined in section 3002 of this title shall be $26.00 and the
biennial fee shall be $48.00.
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Sec. 11. REPEAL
23 V.S.A. § 3004 (collection and payment of tax by a fuel dealer) is
repealed.
Sec. 12. TRANSITIONAL PROVISION
Each dealer and user shall take inventory of the clear, undyed diesel fuel in
his or her or its possession on June 30, 2000. No later than July 31, 2000, each
dealer or user shall, on forms prescribed by the commissioner, report the
number of gallons on hand and pay the tax thereon.
Sec. 13. EFFECTIVE DATE
This act shall take effect on July 1, 2000.
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