§ 26-56-217 — Separate storage tanks for taxable distillate special fuel and for tax-free storage

(a) (1) All users except suppliers of distillate special fuel who maintain their own storage tanks in the state are required to have a separate storage tank for taxable distillate special fuel other than dyed distillate special fuel, which tanks are to be physically separate and apart from any other tanks or fueling units, and to indicate it by placing thereon in a conspicuous place the words "TAX-PAID FUELS" in letters not less than five inches (5") high. (2) Suppliers are required to collect the tax on all distillate special fuel delivered into those tanks. (b) (1) All users who have facilities for storing distillate special fuel intended for other than highway use and which facilities are suitable to fuel motor vehicles using distillate special fuel, except those facilities used for residential purposes, shall mark the storage facilities with the words "NOT FOR MOTOR VEHICLE USE" in letters not less than five inches (5") high, and suppliers may deliver into the storage facilities without collecting the tax levied in this subchapter other than the tax levied by § 26-56-224(b) -(f). (2) (A) If users do not provide the tanks, then all distillate special fuel delivered by a supplier into storage tanks suitable for fueling motor vehicles become taxable, provided, however, that any city or county using a computerized fuel dispensing system that will automatically record each transaction as to pump operator and specific motor vehicle to which the distillate special fuel is dispensed may have taxable and nontaxable distillate special fuel delivered into the same tank. (B) The distributor shall collect the tax on the taxable portion of each purchase based upon the sworn statement of the purchaser as to the amount of taxable distillate special fuel purchased. (C) Each city or county shall file a report with the Secretary of the Department of Finance and Administration accounting for the taxable and nontaxable distillate special fuel used and miles driven by each motor vehicle which requires taxable distillate special fuel in such a manner, at such time, and on such forms as shall be prescribed by the secretary. (D) The secretary may promulgate rules to establish a system to periodically reconcile the taxable distillate special fuel purchased and actual taxable distillate special fuel used by the city or county. (3) However, when a user has one (1) or more storage tanks used for the storage of distillate special fuel within the meaning of this chapter, and the user does not own, possess, lease, or otherwise operate a motor vehicle licensed or required to be licensed for use upon the public highway and capable of using said distillate special fuel, the requirement for marking the storage facilities "NOT FOR MOTOR FUEL USE" shall be waived. (c) Nothing in this section shall be construed to amend or change the meaning of any other section of this chapter.

Legislative History

Amended by Act 2019, No. 315,§ 3026, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 4055, eff. 7/1/2019. Acts 1965 (1st Ex. Sess.), No. 40, ch. 2, § 4; 1973, No. 307, §§ 1, 2; A.S.A. 1947, §§ 75-1244, 75-1244.1; Acts 1991, No. 348, § 1; 2007, No. 87, §§ 6, 7.